LG Energy Solution to provide BESS for PGE’s 263MW/900MWh Poland project

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The tender for the contract was announced in June, and LG Energy Solution’s winning price of PLN1.555 billion was described by PGE as the ‘most advantageous offer’.

The BESS in Żarnowiec, and a future planned one in Gryfino, will help to increase the regulation capacity of the power system and integrate more renewables, namely onshore and offshore wind, PGE said.

It’s worth noting that LG Energy Solution has an 86GWh lithium-ion gigafactory in Poland which it indicated last year it may pivot towards production for BESS. Such a move could have given it an advantage in securing the contract for the project, though this was not mentioned in PGE’s announcement.

As Energy-Storage.news reported at the time, PGE’s project won a capacity market (CM) contract in December 2024, for which the obligation will begin in 2029, one of 2.5GW of projects which did so.

The CM is the bedrock of the business case for large-scale BESS in Poland thanks to its bankable revenues, and BESS projects have won a total of around 4.36GW over the past three auctions (2.5GW in 2024’s, 1.7GW in 2023’s, and 165MW in 2022’s). The total capacity of those BESS projects will be higher as not all capacity is bid in, particularly for 2024’s 2.5GW of winners because of a 57% de-rating factor.

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A fire broke out yesterday (16 January) at the Moss Landing facility which houses what was once the world’s largest BESS, owned by Vistra Energy, in California, US.

Renewable energy infrastructure developer BE Power Group’s 9.6GWh Big-G pumped hydro energy storage (PHES) project in Queensland, Australia, has been submitted to the Federal government seeking approval under the EPBC Act.

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