Poland's PGE Launches Tender for 400MW/800MWh Battery Storage System State-owned power generator and distributor PGE has launched a tender for the construction of a 400MW/800MWh battery energy storage system (BESS) project in Poland. The company announced the tender for the design and construction of the 2-hour BESS project on August 7, 2025.

Project Location and Implementation

The battery storage project will be implemented at PGE's Dolna Odra Power Plant in Nowe Czarnowo near the town of Gryfino in northwestern Poland. This represents the second large-scale BESS project that the company has progressed recently, both forming part of extensive plans to deploy 10GWh of new energy storage resources. 

The tender documents are available through the company's procurement process. The deadline for offers is September 16, 2025.

Strategic Energy Storage Expansion

The Gryfino project is part of PGE's ambitious expansion plans to bring its total energy storage capacity to 17GWh by 2035. The first project in this expansion is the Żarnowiec facility, which will be provided by LG Energy Solution via a turnkey solution comprising BESS and engineering, procurement and construction (EPC) services. 

The BESS for the Żarnowiec project will be locally manufactured. Both the Gryfino and Żarnowiec projects are expected to be operational by 2029. The projects have secured 17-year capacity market (CM) contracts, which form the foundation of the business case for large-scale BESS deployment in Poland.

Market Framework and Financial Structure

The capacity market serves as the bedrock of the business case for large-scale BESS projects in Poland, providing long-term guaranteed income that substantially increases project bankability. 

This market mechanism, combined with a €1 billion capex grant programme, is helping to kickstart the energy storage market in the country. Poland is expected to lead BESS deployments in the Central and Eastern European region in the coming years, supported by these favorable market conditions and government initiatives.

Company Background

PGE is identified as the largest electricity generator and distributor in Poland. As a state-owned entity, the company plays a central role in the country's energy infrastructure and transition to renewable energy sources with storage capabilities. 

The Energy Storage Summit Central and Eastern Europe will focus on Poland as a major market when it convenes for its third edition in Warsaw on September 23-24, 2025, highlighting the country's growing importance in the regional energy storage sector.