Battery storage projects from Hynfra Energy Storage and OX2 totalling 130MWh have won contracts in energy auctions in Poland this week.
A capacity market auction for 2027 from transmission system operator Polskie Sieci Elektroenergetyczne (PSE) closed at PLN 406.35/kW/year (US$93) and handed out long-term contracts to energy resources.
System integrator Hynfra Energy Storage (HES), along with investor Heyka Capital Markets Group developer PKE Pomorze, won a 17-year contract for a 7.5MW/30MWh energy storage system.
The four-hour duration project in the city of Wrocław will support the electricity network, provide renewable load shifting and integrate into an ultrafast EV charging station.
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“This year’s auction is the first one in which a capacity market contract was signed for energy storage systems. This is extremely important, as energy storage systems perfectly support the power system and have the ability to provide power to the grid faster than any other source,” said Piotr Czembor, CEO of HES.
The companies plan to participate in future capacity markets with larger portfolios of energy storage facilities. Just last week, HES said it plans to deploy 500MW of battery storage in Poland.
A total of 486MW of solar PV was awarded contracts in energy auctions held this week in the country, as reported by sister site PV Tech.
HES’ contract win coincides with a comparatively larger, 50MW/100MWh energy storage project also winning a contract through an auction in Poland this week, although winning company OX2 was much less specific on exactly which auction that was. Energy-Storage.news has asked the firm to clarify and will update this article in due course.
The Sweden-headquartered firm said on 21 December that it had won auctions for a solar farm of 100MW alongside the energy storage project, and that it would start construction in 2023.
“This is very good news and we look forward to realising another solar farm and our first energy storage project in Poland. It is a very dynamic market and we will continue to invest and expand our portfolio of projects there”, said Paul Stormoen, CEO of OX2.
The company’s total project portfolio in Poland is about 2.5GW. Energy-Storage.news earlier this month reported on two battery storage projects it is developing in Sweden, totalling 60MW.
The landmark auction awards coincide with a new report produced by the Polish Electricity Association (PKEE) and EY, ‘Polish Energy Transition Path’ (link). The country is targeting 32% renewable energy by 2030 and bringing online more energy storage is one of several ways to balance energy demand and supply and maintain grid stability as more renewable resources come online.
Giving contracts to energy storage in its capacity market was one of the ways to support the sector recommended in the report, so this week’s announcements from HES and OX2 were timely.
Energy storage has not yet played a major role in the energy sector in Poland due to high costs compared to conventional units, it added, but profitability of projects should grow in line with volatility of electricity prices.
Alongside HES’ 500MW plans, state-owned company PGE Group plans to have 800MW of energy storage by 2030, including a 200MW/820MWh it recently announced.
Energy-Storage.news’ publisher Solar Media will host the eighth annual Energy Storage Summit EU in London, 22-23 February 2023. This year it is moving to a larger venue, bringing together Europe’s leading investors, policymakers, developers, utilities, energy buyers and service providers all in one place. Visit the official site for more info.
