Polish utility plans to add 10 GWh of energy storage projects by 2035

PGE Group has laid down ambitious plans for energy storage deployment over the next ten years. In a bid to tackle the challenge of the growing electricity production from renewable energy sources, the Polish utility is looking to add more than 10 GWh of energy storage capacity by 2035.

Its plans involve more than 80 projects, the value of which is estimated at around PLN 18 billion ($4.7 billion).

Today, PGE Group’s energy storage fleet stands at nearly 7 GWh. It is comprised almost exclusively from pumped hydro storage facilities aside from three single-digit-megawatt battery energy storage systems.

The planned investments will help diversify the utility’s storage portfolio. It plans to build six large-scale battery storage facilities with a total capacity of more than 4 GWh. This includes the landmark 262 MW/981 MWh ME Żarnowiec battery project and further facilities in Gryfino, Rybnik, Rogowiec and Kraków. Additionally, the utility is planning 75 distributed energy storage facilities throughout Poland with a total capacity of more than 6 GWh.

In reaction to PGE Group’s plans, Jakub Jaworowski, minister of state assets, said “the development of storage projects is a guarantee of Poland’s energy security”.

Renewable energy sources are already now reducing wholesale energy prices in Poland, said Paulina Hennig-Kloska, minister of climate and environment, adding that thanks to legislative changes and programs offered by the Polish government, the role of renewable energy will only grow in the coming years. Along with it, the importance of energy storage systems will increase.

“To meet this challenge, we are stimulating the development of the energy storage sector on a small and large scale. On a small scale, this means, for example, including energy storage in the Mój Prąd program and the thermal modernization relief. On a large scale, this includes support from the capacity market – the PGE Group’s investment in Żarnowiec gained support in an auction held in December 2024. This shows how important the capacity market is in stimulating investments necessary to ensure Poland’s energy security,” the minister said.

According to Dariusz Marzec, president of the management board of PGE Polska Group, there cannot be further development of renewable energy without parallel large investments in storage.

“By investing, we will also contribute to the efficient operation of the national power system by providing a power reserve through energy storage facilities. During periods of high demand, these facilities will feed energy from renewable sources into the grid. As a result, we will enhance the utilization of renewable energy installations, stabilize energy prices on the stock exchange, and reduce consumer energy costs,” he said.

Made in Poland batteries for Zarnowiec project

The most advanced energy storage project in the PGE Group’s portfolio is the Żarnowiec Energy Storage Facility. With a power output of 262 MW and a storage capacity of around 981 MWh, the facility will be by far the largest battery energy storage facility in Poland and one of the largest in Europe.

The contractor on the project will be LG Energy Solution Wrocław. The Polish unit of the Korean battery maker won the project tender offering the price of PLN 1.555 billion ($384 million).

On Monday, LG Energy Solution confirmed that it had signed an agreement with PGE to supply 981MWh of grid-scale ESS batteries between 2026 and 2027. It also noted that the project will be supplied with locally manufactured grid-scale lithium iron phosphate batteries at LG Energy Solution’s production facility in Poland.

LG Energy Solution will also be in charge of the project design and construction on a turnkey basis. Completion of construction is scheduled for 2027.

The Żarnowiec BESS project, which is backed by a a 17-year contract won in a capacity market auction for 2029, will be located in the vicinity of the Żarnowiec Pumped Storage Power Plant, owned and operated by PGE Group.