Polish state-owned power firm PGE has commenced construction of a 262MW/981 MWh battery energy storage system (BESS) in Żarnowiec, marking a significant milestone in the country's energy infrastructure development. The project utilizes locally manufactured LG batteries and represents one of the largest BESS installations in Europe. The groundbreaking ceremony for the 3.7-hour duration storage facility took place on September 19, with completion scheduled for the second quarter of 2027.

PGE is investing PLN 1.5 billion (USD 416 million) in the project, which the company claims will be among the largest BESS installations in Europe.

Local Manufacturing Partnership

South Korea-headquartered LG Energy Solution (LG ES) will supply the project from its facility in Wroclaw, southwest Poland, which manufactures both batteries and BESS systems. The facility was originally designed as an EV-focused manufacturing plant, but a slowdown in the electric vehicle sector and acceleration in battery energy storage systems prompted the firm to pivot the facility, along with other installations, toward energy storage applications.

Jangha Lee, president of LG Energy Solution Wrocław, emphasized the project's domestic focus: “It's important to emphasise that this project is fully based on the principle of local content, ​​and we're proud of it. The batteries for the storage facility are being manufactured in Poland, at our LG Energy Solution Wrocław factory in Biskupice Podgórne. All companies involved in the construction of the infrastructure and energy connections are Polish contractors. The entire project value chain is being built using domestic resources and expertise.”

Government Support and Strategic Importance

Miłosz Motyka, Poland's Minister of Energy, commented on the significance of the development: “The energy storage facility in Żarnowiec will be one of the largest of its kind in Europe, becoming a symbol of our country's modern energy transformation.” Paulina Hennig-Kloska, Minister of Climate and Environment, highlighted the project's role in renewable energy efficiency: “Increasing the efficiency of renewable energy sources is one of the government's priorities. We are investing in expanding the network of energy storage facilities at every level.”

Capacity Market Framework

The Żarnowiec project secured its foundation through Poland's capacity market mechanism, winning one of approximately 2.5GW worth of BESS projects that received capacity market (CM) contracts in December 2024. The capacity market obligations for these projects will begin in 2029, with the CM providing the fundamental business case for large-scale BESS development in Poland.

The project represents part of a broader trend in Polish energy storage development. Just one day before the groundbreaking announcement, Ukraine-headquartered independent power producer DTEK announced that Fluence would provide the BESS for its project in Poland, which had won a CM contract in 2022 for delivery in 2027. The announcement of PGE's project construction coincided with Solar Media's Energy Storage Summit CEE, which began on September 23.

The two-day event in Warsaw brings together private and public stakeholders from across the region, with Poland serving as a key focus area. The summit, now in its third edition and published by Solar Media as part of Informa, addresses the growing energy storage market in Central and Eastern Europe.

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