Axpo (energy company) and R.Power (European independent power producer) have signed a long-term agreement to optimize a 300 MW/1,200 MWh battery energy storage system in Poland, marking the largest single-project BESS optimization deal in Central and Eastern Europe and one of the largest on the broader European market.

A Landmark Agreement for Polish Energy Storage

The facility will be constructed in Dzięgielewo, located in Mazovia province in east-central Poland. The agreement will begin at the start of commercial operation and run until the end of 2038, giving the partnership a multi-year commercial horizon that covers the full scope of optimization services for the asset.

The deal is structured around a profit-sharing mechanism between Axpo and R.Power, combined with a minimum revenue guarantee, or floor, designed to support the project's bankability and reduce investment risk.

This structure mirrors the kind of commercial certainty more commonly associated with long-term power purchase agreements for renewable energy installations, and is intended to help secure the future of the Dzięgielewo project.

The Dzięgielewo facility is described as one of Poland's largest planned battery storage installations and a key component of R.Power's 1.7 GW/6.3 GWh Polish energy storage pipeline.

What BESS Optimization Involves

Under the agreement, Axpo takes on full commercial management of the energy storage asset. BESS optimization, as described by the companies, involves managing the operation of the storage system and related market commitments to maximize revenues and asset value. In practical terms, this means deciding when, how, and for what purpose the battery's capacity is used.

That encompasses both cycling energy through the battery charging and discharging, and reserving its capacity to provide ancillary services to the power system operator. By entrusting this commercial management to a single partner, R.Power is able to focus on developing the project and maintaining operational performance.

The scale of the Dzięgielewo installation is expected to significantly increase the flexibility of Poland's power system, support the integration of the country's growing renewable energy supply, and provide ancillary services to the balancing market.

Building on an Existing Partnership

The Dzięgielewo agreement is the second BESS optimization deal between the two companies this year. In January, Axpo and R.Power announced a joint optimization agreement for an energy storage project in Jedwabno, in northern Poland, covering a 150 MW/300 MWh facility.

The two companies also have a long-standing relationship that includes long-term power purchase agreements for around 300 MW of photovoltaic capacity. With the signing of the Dzięgielewo deal, the total contracted storage capacity between Axpo and R.Power will reach 450 MW/1,500 MWh.

Axpo Polska Managing Director Mateusz Marczewski said the Dzięgielewo project represents another step toward building Axpo's leading position in the large-scale energy storage segment in Poland.

He added that the company's goal is to maximise the value of partners' assets throughout their entire life cycle, from participation in power and ancillary services markets to a commercialisation model tailored to bankability requirements.

Axpo Polska Head of Origination Krzysztof Włodyga noted that the trust built with R.Power through earlier PPA projects and the Jedwabno agreement allowed both sides to quickly define a cooperation framework for an asset of Dzięgielewo's scale. He identified a key challenge as scaling solutions to 300 MW while refining them against rapidly evolving operational and regulatory standards.

R.Power's Strategic Rationale

R.Power Chief Commercial Officer Rafał Hajduk said the company is expanding its energy storage base in order to structurally balance its growing photovoltaic portfolio and deliver stable, renewable energy in Europe.

He described long-term commercialisation agreements of this nature as fundamental not only to the delivery of R.Power's own pipeline but also as laying the groundwork for growth of utility-scale battery storage in what he called highly promising markets such as Poland.

Hajduk added that the multi-year partnership with Axpo and experience gained on the Jedwabno project enabled rapid and effective alignment on the framework for Dzięgielewo, which he said would set a new benchmark for energy storage in Central and Eastern Europe.

Axpo's Broader Position in Poland and European Storage

Axpo has been active in Poland for 25 years and is described as one of the country's largest independent energy dealers and offtakers of renewable energy. The company manages a renewable energy portfolio of around 16 TWh in Poland and is involved in developing photovoltaic, BESS, and biogas projects in the country.

More broadly, Axpo has for several years been developing, building, and commercially optimizing utility-scale storage systems across Europe. The Dzięgielewo agreement further strengthens what the company describes as its position as a technology and trading partner for large-scale energy storage in the Polish market.

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