PGE Polska Grupa Energetyczna has signed an agreement with LG Energy Solution Wrocław for the construction of an Electricity Storage Facility in Żarnowiec with a capacity of 262 MW and approximately 981 MWh. The value of the contract was PLN 1.555 billion gross. Construction is scheduled to be completed in the second quarter of 2027.
“We are preparing to start the construction of the largest in Poland and one of the of the largest energy storage investments in Europe. PGE's first large-scale battery energy storage facility with a capacity of approximately 981 MWh will be built in Żarnowiec - thus entering a new era of energy storage in our Group. It will ensure better balancing of energy in the power grid by releasing power into the system during periods of increased demand and at the same time insufficient RES production, and taking it out at times of overproduction from renewable sources, thus allowing them to be used more efficiently. In practice, this means that in two years‘ time, during the evening increase in demand for electricity in Poland, we will be able to feed clean energy into the grid for up to 250,000 households.”
“When we started producing batteries for electric cars in the Polish factory in Biskupice Podgórne, we believed from the very beginning that it would become a centre of battery production for the whole world. After these 8 years, we know that our investment has played a key role and has not only brought state-of-the-art technology to Poland, but has also made Poland the European leader in this industry. Today, we are taking another step towards a new strategy and new projects - preparing the infrastructure for Polish and European energy storage systems. In Biskupice Podgórne near Wrocław, there is an over 100-hectare state-of-the-art technology park where several thousand people work. We will do our utmost to ensure that our factory contributes both to Europe's energy transition and to the creation of more jobs in Poland and the development of local communities."
According to the contract, the nominal capacity of the storage will be approximately 981 MWh, the capacity available in the discharge direction 262.2 MW and in the charging direction 269.4 MW.
The battery energy storage facility in Żarnowiec will be located in the Pomeranian Voivodeship, near the Żarnowiec Peak and Pumped Storage Power Plant, the largest in Poland, owned by PGE Energia Odnawialna, which will be responsible for overseeing the project. The project has been granted Poland’s first concession promise for electricity storage and has a connection agreement to the national electricity system. Earlier, in December last year, it was awarded a 17-year contract in a power market auction for 2029. As part of the financing of the project, the PGE Group will apply for funds from the NERP.
PGE is consistently developing its energy storage programme. It is already the leader in energy storage, with a share of nearly 90% in of pumped storage power plants. The Group also has two battery-based energy storage facilities. In 2020. PGE commissioned the first modular energy storage facility in Rzepedzi, Podkarpacie, in Poland. The installation with a capacity of approximately 2.1 MW and a capacity of 4.2 MWh was designed to support the reliability of the local distribution network. Meanwhile, in 2021, PGE Energia Odnawialna commissioned an energy storage facility with a capacity of 500 kW and a usable capacity of 750 kWh on Żar Mountain in the Silesian province. PGE Energetyka Kolejowa has built an energy storage facility in Garbce near Wrocław with a capacity of 5.5 MW and a usable capacity of 1.2 MWh, which is the largest energy storage facility working for traction needs in Europe. PGE is also working on a battery-based energy storage facility in Gryfino in the West Pomeranian Voivodeship with a capacity of 400 MW and a useful capacity of no less than 800 MWh, which is scheduled for commissioning in 2029. The Gryfino energy storage facility, similarly to the storage facility in Żarnowiec, was awarded a 17-year contract in a power market auction, assuming that the facility will be put into operation by 2029 at the latest. PGE is also planning the construction of 26 distributed electricity storage facilities with capacities ranging from 2 MW to 10 MW, located in five provinces (Mazowieckie, Podkarpackie, Łódzkie, Lubelskie, Podlaskie).
LG Energy Solution, a split-off from LG Chem, is a leading global manufacturer of lithium-ion batteries for electric vehicles, mobility, IT, and energy storage systems. With 30 years of experience in revolutionary battery technology and extensive research and development (R&D), the company is the top battery-related patent holder in the world with over 69,600 patents. Its robust global network, which spans North America, Europe, and Asia, includes battery manufacturing facilities established through joint ventures with major automakers. Committed to building sustainable battery ecosystem, LG Energy Solution aims to achieve carbon neutrality across its value chain by 2050, while embodying the value of shared growth and promoting diverse and inclusive corporate culture.
The corporation has a plant in Poland, LG Energy Solution Wrocław, which is the largest manufacturer of batteries for electric cars in Europe. The company’s announced vision of development and strategy – Empower Every Possibility and strengthening its position as a leader in next-generation battery technology – is of great importance for the Polish plant, as it envisages the start of energy storage production also in Poland. LG Energy Solution plans to expand ESS business by focusing on Europe countries and customers that value and respect locally produced products, based on its “Made in Europe” manufacturing. This strategy aims to strengthen its position in the European market and create more opportunities while emphasizing the quality and competitiveness of its products “Made in Europe”.
