In Poland, batteries are playing a pivotal role in the energy transition, particularly in the capacity market, where they compete with traditional technologies such as gas plants.

Karol Wolański, Head of Flexibility and Aggregation at Respect Energy, tells Energía Estratégica España that “batteries offer unprecedented flexibility, enabling a rapid response to system demands and improving grid stability.”

Government auctions and financing

One of the most notable advancements has been the recent popularisation of batteries in the capacity market and the introduction of a support scheme designed by the Polish government. “Currently, there are two main mechanisms to support batteries: the capacity market and a newly announced subsidy from the National Fund for Environmental Protection and Water Management, with a budget of 4 billion zlotys (1.2 billion EUR) in grants and loans,” details Wolański. This subsidy targets projects with a minimum of 2 MW installed power and 4 MWh storage capacity.

Batteries have dominated recent capacity auctions, creating tensions with gas plants. “The TSO is working to ensure that batteries do not hinder the development of new gas plants, reflecting the challenge of balancing sustainability with system stability,” adds the executive.

The capacity market has witnessed a significant shift with the implementation of modifications to the derating factor for batteries. “The transmission system operator (TSO) has reduced this factor from 95% to 61.3%, influencing the maximum capacity that can be prequalified for capacity auction by batteries,” explains Wolański. Despite these restrictions, batteries remain a competitive alternative due to their versatility and declining costs.

Regulations and opportunities in emerging markets

The evolution of the regulatory framework in Poland has opened new opportunities for the development of storage technologies. However, challenges remain. “The lack of clarity in some regulations, no history of battery operations, and the complexity of permitting processes can disincentivise investors,” warns Wolański. Nevertheless, initiatives such as flexibility markets are emerging as key solutions.

“These markets allow batteries to provide storage services to the DSOs, generating additional revenue and improving system efficiency,” explains Wolański. Additionally, reforms to the balancing market have enabled the active participation of renewables and batteries, creating new opportunities within a more decentralised system.

The future of energy storage in Poland

With the energy transition underway, Poland is progressing towards a more sustainable energy mix. “The combination of technological advancements, cost reductions, and a more favourable regulatory environment is creating a promising scenario for batteries,” concludes Wolański. However, he emphasises that it will be essential to address existing barriers and ensure that policies evolve in line with market needs and emerging technological capabilities.