PGE has chosen a contractor for one of the largest energy storage facilities in Europe
The PGE Group has selected the general contractor for the design and turnkey construction of the Żarnowiec battery energy storage facility. The project, with a capacity of up to 263 MW and a minimum storage capacity of 900 MWh, will be implemented by LG Energy Solution Wrocław. The storage facility, located near the Żarnowiec Pumped Storage Power Plant owned by the PGE Group, will be one of the largest battery energy storage systems in Europe.
In brief
PGE Group has selected LG Energy Solution Wrocław as general contractor for the Żarnowiec battery energy storage facility with a power of up to 263 MW and a minimum capacity of 900 MWh. The offer of LG Energy Solution Wrocław amounts to PLN 1 billion 555 million gross, the procedure was announced in July 2024 and two bids were received in November 2024. The storage facility will be built in the Pomeranian Voivodeship next to the Żarnowiec Pumped Storage Power Plant and in December secured a contract in the capacity market auction for 2029. Conclusion of the contract depends on there being no appeals to the President of the National Appeals Chamber.
Energy transformation in action. Żarnowiec energy storage facility key to Poland's green future
- Energy transformation requires decisive action. In just two years, energy from offshore wind farms in the Baltic Sea will power Polish households. To make optimal use of the capacity installed in renewable energy sources (RES), it is essential to ensure parallel operation of storage systems, which will store energy during periods when production exceeds current demand. PGE's new investment, the Żarnowiec energy storage facility, addresses these needs. It will not only enhance the flexibility of the power system but also balance the power generated by wind farms, both onshore and offshore. Developing energy storage projects like Żarnowiec and the upcoming facility in Gryfino will improve the efficiency of RES and help reduce energy costs for consumers. Selecting the general contractor is a crucial milestone in realizing this project. Notably, in December of last year, the Żarnowiec energy storage facility secured a capacity market contract for 2029 - stated Dariusz Marzec, President of the Management Board of PGE.
The tender process for selecting the general contractor was announced in July 2024. Conducted as an open tender under the Public Procurement Law, it attracted two bids in November 2024. The winning bid, submitted by LG Energy Solution Wrocław sp. z o.o., was valued at PLN 1.555 billion gross.
The contract with the selected contractor can be signed if no appeals are filed with the President of the National Appeals Chamber within the specified timeframe and after receiving confirmation from the European Commission that there are no objections under the rules concerning foreign subsidies that distort the internal market.
The Żarnowiec battery energy storage facility will be located in the Pomeranian Voivodeship, near PGE's future offshore wind farms and Poland's largest pumped storage power plant in Żarnowiec. PGE Energia Odnawialna, responsible for overseeing the project, will manage the construction. The project has secured Poland's first-ever energy storage license and a grid connection agreement to the national power system.
Source: PGE / Gazeta Morska · Compiled by: Kamil Kusier
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