The state must have control over energy networks. However, there are visible weaknesses.

• - The problem in Poland is that there are no uniform cybersecurity standards for devices installed in transmission and distribution networks - emphasized Maciej Wyczesany, president of Apator, in an interview with WNP.
• "The Polish grid is still designed for one-way energy flow – from large generation sources to end users. Today, we have approximately two million prosumers who not only consume but also feed energy into the grid," noted Apator's president.
• - While in SCADA systems or at the high-voltage level, safety procedures are rigorously followed and transmission and communication protocols are secure, in the case of IoT devices - meters, controllers or inverters with cloud access - open protocols are used and often no standards apply - stated Maciej Wyczesany.
• The report "Live Networks – Critical Infrastructure Investments" will soon be published on the WNP and WNP Economic Trends websites, with Apator as a partner. The report will be discussed at the Energy Days conference (October 1-1, Katowice).

The Polish energy sector is currently at a crossroads. Over 40% of installed capacity comes from renewable energy sources, yet operators are massively refusing connections. In 2022, projects with a total capacity of approximately 50 GW were blocked – almost as much as the total capacity of all operating sources in the country. Are transmission and distribution grids the weakest link in the transformation today?

"That's a rather complex question. Poland currently requires an average of about 22 GW of power at peak times. Renewable sources—under favorable weather conditions—can generate 14-16 GW, demonstrating their growing importance in the mix. However, the problem is the uncontrollability and variability of production—in a short period of time, production can drop from 16 to 10 GW. In such situations, the system must be rapidly balanced by conventional sources."

This creates four main challenges. First: grid flexibility and modernization. To cope with the variability of renewable energy sources, grid modernization and digitalization are necessary, including the implementation of advanced Internet of Things (IoT) systems. Smart meters, network automation, and sensors enable dynamic management of energy flows and rapid response to changes in production and demand.

Secondly, frequency stability. Renewable sources are not suitable for baseload operation. They support the mix but do not ensure frequency stability. The greater their share, the more difficult it is to maintain system balance, as the Spanish experience painfully demonstrated.

The third key issue is infrastructure cybersecurity. Each new IoT device connected to the power grid is also a potential entry point for cybercriminals. Network transformation must be coupled with investments in digital security.

In Poland, we do not have uniform cybersecurity standards.

The problem in Poland is that there are no uniform cybersecurity standards for devices installed in transmission and distribution networks. Operators purchase equipment with varying levels of security, and the lack of consistent requirements creates a real risk to critical infrastructure .

The final aspect I'd like to highlight concerns the procurement mechanism for critical infrastructure equipment and solutions. A significant portion of the equipment is purchased directly from China or by Polish distributors through public tenders, where price is the sole selection criterion . These purchases are additionally financed from public funds, including budget subsidies for grid modernization (NFOŚiGW, KPO). This means that Polish taxpayers are financing the expansion of Chinese companies that use dumping prices to eliminate competition.

Experts point out that thousands of medium-voltage points in Poland are still based on outdated technologies that are not prepared for distributed generation. How large is the scale of investment needed in grid automation and digitalization today? What role can Apator's technologies play in this process?

"I believe that only the Polish Power Grids (PSE) have full knowledge of how much of the infrastructure currently relies on outdated technologies. It is estimated that up to 60% of medium-voltage junction points —the main power supply points in power grids—require modernization."

If we look beyond the transmission infrastructure itself, but also at the critical transition points from high to medium and then to low voltage, the scale of the problem becomes clear. With the growing share of renewable energy sources, which produce energy primarily at low and medium voltage, colliding such a complex energy mix with a partially outdated grid infrastructure becomes a significant challenge.

But this means that proper balancing and management requires a high degree of digitization of these solutions. This means it's not just a matter of communication within the network, but also solutions related to telemechanics, controllers, and security.

Apator offers a wide range of solutions to support energy transformation. Our SCADA systems, as well as specialized electronic protection devices, controllers, and network communication modules, are effective both in integrating renewable energy sources and in the daily work of distribution system operators. It is in the area of ​​control and supervision systems (SCADA) that we possess some of the best expertise in Poland.

Our portfolio also includes smart meters, which, combined with SCADA systems, give us the full right to say we offer a complete chain of solutions for the energy sector – from the design and production in Poland of professional electronic devices dedicated to the power industry, through software control, to full integration with management systems. This is our advantage – the security, integrity, and local nature of the technology. This allows us to also offer solutions dedicated to the renewable energy sector: controllers, protection, and so-called small SCADA, which operates at low voltage.

I understand that without modernization of the medium voltage grid, there will soon be a real problem with the distribution of energy produced by prosumers and renewable energy farms.

The Polish grid is still designed for one-way energy flow—from large generation sources to end users. Today, however, we have approximately two million prosumers who not only consume but also feed energy into the grid.

Balancing traditional energy sources with renewable energy requires advanced digital solutions

It's no longer a unidirectional system, but a multidirectional one. Balancing traditional sources with a vast number of renewable energy generation points is a challenge that can only be addressed through infrastructure digitalization, with a focus on intra-grid communication, modern controllers, and overload protection mechanisms. Our solutions enable near-real-time control of bidirectional grid energy flows, which is essential for the stability of the entire system with a large number of renewable energy sources.

The old unidirectional grid didn't need this, but the situation is different now. Without power flow control, the system cannot be kept "up and running," nor can it respond in real time to disruptions or outages. An example is our FDIR solution, which, using advanced algorithms, can automatically restore power after a failure in a given section of the grid in less than three minutes , redirecting energy from a different direction safely, quickly, and without human intervention. Such solutions already exist today. We have implemented SCADA systems that not only protect against overloads but also automatically reconfigure the grid in the event of a failure, ensuring alternative power flows. This prevents overloading of other components and the risk of blackouts. These systems are already successfully operating with some distribution network operators.

In summary: without digitization, without modern, dedicated digital devices such as controllers, security, and monitoring systems, it is impossible to effectively manage an entity as complex as today's energy mix. Apator has unique competencies and proven technologies that are already in use.

Do you see a chance that, thanks to regulations and financial incentives – such as preferential loans or tax breaks – energy storage will become a common tool not only in large projects, but also at the local level: in municipalities, energy cooperatives or industrial plants?

"I strongly believe that energy storage is a solution that, with appropriate regulatory support and well-designed programs, can successfully emerge in the Polish energy landscape. A good example is the energy storage financing program, where the number of applications exceeded the available funds four times. This clearly demonstrates the significant interest in these technologies."

Can storage facilities effectively solve some of the problems faced by power grids and system operators?

"However, the condition is their thoughtful placement—at points where the energy mix is ​​most complex. The storage itself is essentially an extensive battery. Its true value comes from the EMS management system, which, combined with controllers and inverters, can capture production peaks, store excess energy, eliminating the need to shut down renewable energy sources, and simultaneously stabilize the grid ."

This is a huge benefit for both individual energy areas and the entire system. The storage facility accumulates surplus energy and, at the appropriate time, releases it back to the grid. The problem is that current regulations limit distribution system operators (DSOs) – they can only use storage facilities for stabilization purposes. For this technology to develop, a legal change is needed that will allow DSOs not only to stabilize the system but also to sell the energy stored in these facilities.

In summary, the design of support programs is crucial. The latest program, still awaiting a decision, demonstrated enormous market interest. But something else is equally important: full technological and technical control (security by design) over the solutions we install on the grid . This guarantees the digital security of our systems – a priceless asset in today's turbulent times. Millions of devices currently operate within the grid without any security certification. This is a gap we cannot ignore if we want to build a resilient and secure energy sector of the future.

This is related to security. The Polish energy sector is rapidly digitizing, especially with the development of renewable energy sources. However, we still lack uniform cybersecurity standards for devices used in the grid. Is the lack of such regulations one of the greatest threats to the country's energy security today?

Network digitization and automation present a huge opportunity, but also a serious threat. The lack of verified technologies in critical infrastructure could prove to be a significant long-term threat to national security.

As long as nothing happens, the problem remains invisible – lulling decision-makers into a false sense of security. But the risk exists and is growing. Poland currently lacks cybersecurity standards for devices used in critical infrastructure. While security procedures are rigorously followed in SCADA systems or at high-voltage levels, and transmission and communication protocols are secure, IoT devices – such as meters, controllers, or inverters with cloud access – use open protocols and often no standards.

There are also other cases where publicly available open protocols are used, which are highly vulnerable to hacker attacks . However, these devices operate online, collecting data, transmitting it, and controlling energy flows, often directly to prosumers and end users.

Should we then introduce mandatory cybersecurity and local content standards for energy devices – even if it means higher investment costs?

"In my opinion, yes. Without this, we will always be in a situation where critical energy infrastructure relies on devices from uncertain sources. It's crucial to have control over the supply chain: knowing the origin of hardware, software, and firmware, as well as the place of production. Only then can we speak of real security. Poland is one of the few EU countries where we still have neither a nationwide technical specification, nor a nationwide system for testing and approving equipment for the market, nor a system for verifying suppliers for critical infrastructure. Apator developed a proposal for such a system and presented it at numerous industry events."

Today, there's a significant lack of oversight of what we install in power grids. Currently, over half of smart meters come from China. They are sold to distribution system operators (DSOs) through public tenders—financed by the National Energy Policy and Water Management Fund—where price is the sole criterion . Chinese manufacturers have mastered how to circumvent regulations: they register companies in Europe, use distributors, or operate through Polish intermediaries. The result? Hundreds of millions of zlotys in public subsidies flow to Asia, while a small percentage of this amount remains in Poland. All innovation and added value are absorbed by foreign suppliers. In other words, we're developing the Chinese economy with our own money.

But that's only part of the problem, the most visible part. The most disturbing thing is that we're creating a technological environment beyond our control that could one day be used against us on a large scale.

So how do we reconcile the pressure of the lowest price in tenders with the need to build technological resilience and the country's energy security?

"This is a fundamental question. As long as price is the only criterion, there can be no serious discussion about cybersecurity or local content , and companies engaging in price dumping will always win. We see this with the example of smart meters – millions of devices are purchased without certification requirements, without security guarantees, and without standards for controlling the origin of both the devices and their software. This is a direct path to a situation in which Poland is digitizing its energy sector while simultaneously becoming increasingly vulnerable to external threats."

If we truly take security seriously, we must incorporate quality and security requirements into public procurement. Otherwise, we will continue to invest in network development while exposing it to risks that could have dramatic consequences.

In Poland, connection conditions have already been issued for renewable energy installations with a total capacity of approximately 70 GW, while the current operating sources have a capacity of approximately 30 GW. However, a significant portion of these projects are so-called "virtual investments," blocking access to other investors. Could shortening the validity of connection conditions and introducing contract verification mechanisms actually clear the market and unlock the development of renewable energy?

- This may not be Apator's direct area of ​​activity, but looking at the scale of the problem you mentioned, it is clear that we are dealing with a real challenge.

Mechanisms to verify such permits—whether time limits or the requirement to actually commence the investment—seem necessary. Otherwise, the practice of trading in connection conditions will intensify. Already, many of these permits are not used to implement new projects, but rather for subsequent resale to other investors.

This blocks access to the grid for companies that genuinely want to build installations and accelerate the transformation. In summary, regulations are needed that will streamline the investment process, eliminate speculation, and ensure that permits translate into concrete projects. Such solutions would clear the market and provide an opportunity for faster investment for those truly ready to act.

What market niches and competitive advantages does Polish technology provide in the area of ​​distributed energy management?

Apator offers a wide range of solutions today—not just devices, but also complete systems. A good example is the EKTIN system, a so-called "small SCADA," which allows for the management of distributed renewable energy sources, both PV and wind installations. The system not only integrates generating sources but also enables control of flows between them, energy storage facilities, and end users, such as industrial plants.

What are the advantages of this type of solutions over classic systems used in the energy sector?

Our solutions create a complete ecosystem—from management systems and SCADA integration to a complete set of software and electronic devices performing executive functions (controllers, communication modules, and security). In the case of renewable energy sources, they enable synchronization with the power grid, storage facilities, and end users. This is a complex yet coherent environment, whose greatest value lies in its integrity.

Apator offers fully Polish solutions

This gives our clients the confidence that they are using safe and fully Polish technologies – designed and manufactured by us from start to finish. Apator has been operating in the market for decades and is a publicly traded company with an established position and reputation. Our advantage is localization – we are the authors and implementers of solutions that we can modify, develop, and adapt to market needs at any time.

Thanks to this, we also meet the needs of developing energy clusters, energy cooperatives and civic communities that require technologies tailored to local realities and providing full control over energy flows.

Do you see a chance for Apator's solutions to become the foundation for the development of community energy in Poland?

"Yes, and it's already happening. Our technologies are used in energy clusters – the Słupsk Cluster is a good example. We implemented a system there that integrates generation sources, complete metering, and visualization of the entire "ecosystem" based on our controllers and other electronic devices. This demonstrates that Apator's solutions can be used not only in clusters but also in energy cooperatives – both at the software and physical device levels."

Do local communities really need such comprehensive solutions, covering not only electricity, but also water, heat and gas?

"Absolutely. Our devices operate in each of these areas—energy, water, heat, gas—and all are equipped with intelligent remote communication systems. This enables the creation of complete ecosystems that not only measure and report the consumption of individual utilities but also allow for effective management in real time. These solutions were created specifically for small energy communities. The Słupsk Cluster is a prime example of this—we've been working there for over two years, and the next stage of the project is the launch of an energy storage facility linked to a photovoltaic farm."

During one of the debates, the president of the Export Credit Insurance Corporation (KUKE) pointed out that Polish businesses have more difficult access to financing than their Western competitors – a situation particularly evident in the energy transition. What financial instruments would be crucial to accelerate investments in grids, automation, and energy storage?

"Of course, compared to the largest European companies participating in the energy transition, one might get the impression that Polish businesses have limited access to financing. However, I personally believe this isn't such a major problem."

That's interesting. So Polish companies aren't in a worse situation at all?

"It would be much more important to introduce instruments that increase investment credibility, such as state guarantees, which could help assess contractors. However, an even better solution would be state aid in the form of preferential financing terms. This would lower borrowing costs and allow for faster investment launches."

How do you assess the role of banks in this process?

The banking system in Poland is well-developed and willing to finance energy projects if they are properly prepared. Therefore, a bigger problem than access to financing is ensuring that the money allocated for energy transformation, digitalization, and grid modernization actually stays within the Polish economy.

What should be changed to make these funds actually work for the benefit of domestic companies?

"Concrete actions and legal acts are necessary to ensure that public funds—both subsidies and investments from state-owned companies—are directed primarily to Polish, or at least European, companies. Currently, these mechanisms are practically nonexistent, and hundreds of millions of złotys flow to Chinese and Turkish suppliers, failing to strengthen our economy. This is a sure path to a loss of competence and technological sovereignty in the long term."

What could be the consequences of such a loss of competence for the entire Polish economy?

"If Polish producers in the energy and power sectors don't have support, we will lose our entire engineering base. Young specialists must have the opportunity to work in domestic companies that develop technologies locally. Apator employs over 150 people in Poland in R&D departments alone. There are several similar companies with Polish capital, and if we don't support them, we will quickly lose key competencies. Then we will become an economy dependent on foreign suppliers."