The European Commission (Commission) has authorised €170 million in direct grants for two projects in Poland designed to promote better energy infrastructure by reducing energy losses and extending distribution networks to improve interconnection with renewable energy sources. The project will be partly funded by Poland and by a grant from the European Structural Funds. Following an investigation, the Commission concluded that the project was compatible with Article 87(3)(c) EC Treaty. It was found to be proportional to what was required, would provide an incentive for operators to invest in energy saving measures and would not unduly limit competition.