The article discusses how small power units called distributed generation (DG) and hybrid power systems (HPS) are being used in Poland to generate electricity and heat. These systems use both traditional and renewable energy sources, with a focus on renewable energy for sustainable development. The European Union is supporting the development of renewable energy sources, and Poland is working towards utilizing them more. The article outlines the current state and future prospects of renewable energy and distributed generation in Poland, along with the tools being used to promote their growth.