PGE signs agreement with LG Energy Solution Wrocław for large battery storage system in Europe

- We are preparing to commence construction of the largest energy storage investment in Poland and one of the largest in Europe. The large-scale battery energy storage system in Żarnowiec, with a capacity of approximately 981 MWh, marks a new era for PGE in energy storage. It will enhance grid balancing by supplying power during peak demand periods and absorbing surplus renewable energy when production exceeds demand, optimizing the utilization of renewable sources. In practical terms, this means that in two years, during peak evening demand, we will be able to deliver clean energy to as many as 250,000 households, said Dariusz Marzec, president of the management board of PGE Polska Grupa Energetyczna.

- When we launched battery production for electric vehicles at our Polish facility in Biskupice Podgórne, we firmly believed it would become a global battery manufacturing hub. After eight years, we can confidently say that our investment has played a crucial role in bringing cutting-edge technology to Poland and positioning the country as a European leader in the battery sector. Today, we take another significant step towards a new strategy and projects that will shape energy storage infrastructure for Polish and European power systems. Our advanced 100-hectare technology park in Biskupice Podgórne employs thousands of people. We will continue to contribute to Europe's energy transition while fostering job creation and local community development in Poland, stated Jangha Lee, president of LG Energy Solution Wrocław.

According to the agreement, the energy storage facility will feature a nominal capacity of approximately 981 MWh, a discharge power capacity of 262.2 MW, and a charge power capacity of 269.4 MW.

The battery storage system in Żarnowiec will be located in the Pomeranian Voivodeship, near Poland's largest pumped-storage power plant, Żarnowiec hydroelectric power plant, owned by PGE Energia Odnawialna, which will oversee the project. The initiative has received Poland’s first-ever energy storage license pre-approval and has a grid connection agreement with the national power system. Furthermore, in December last year, it secured a 17-year capacity market contract for 2029. PGE plans to apply for funding from the National Recovery Plan (KPO) to support the project.

PGE is continuously expanding its energy storage initiatives. Currently, it dominates the pumped-storage power plant sector with nearly 90% market share. The company also operates two battery energy storage facilities: the first modular battery storage system in Poland, commissioned in 2020 in Rzepedź, Podkarpackie Voivodeship, with a capacity of approximately 2.1 MW and 4.2 MWh, designed to enhance the reliability of the local distribution network. Additionally, in 2021, PGE Energia Odnawialna launched a battery storage facility on Góra Żar in the Silesian Voivodeship, with a power capacity of 500 kW and a usable capacity of 750 kWh. PGE Energetyka Kolejowa also developed a battery storage system in Garbce near Wrocław, with a power rating of 5.5 MW and a usable capacity of 1.2 MWh, making it the largest railway traction energy storage system in Europe.

Further projects include a planned battery storage system in Gryfino, West Pomeranian Voivodeship, with a power rating of 400 MW and a capacity of no less than 800 MWh, scheduled for commissioning by 2029. Like the Żarnowiec project, the Gryfino energy storage system has secured a 17-year capacity market contract, guaranteeing deployment no later than 2029. PGE also intends to build 26 distributed energy storage facilities, each with a power rating between 2 MW and 10 MW, spread across five voivodeships (Mazowieckie, Podkarpackie, Łódzkie, Lubelskie, and Podlaskie).

LG Energy Solution, a spin-off from LG Chem, is a leading global manufacturer of lithium-ion batteries for electric vehicles, IT applications, and energy storage systems. With 30 years of experience in advanced battery technology and extensive R&D investments, the company holds more than 69,600 battery-related patents worldwide. LG Energy Solution operates production facilities across North America, Europe, and Asia and maintains joint ventures with major automotive manufacturers. The company is committed to building a sustainable battery production ecosystem and aims to achieve carbon neutrality across its value chain by 2050.

In Poland, LG Energy Solution Wrocław is Europe's largest producer of batteries for electric vehicles. The company’s development strategy, "Empower Every Possibility," emphasizes strengthening leadership in next-generation battery technologies. This vision includes the production of energy storage systems in Poland, with a focus on expanding the energy storage systems (ESS) business and catering to European customers who prioritize locally manufactured products. The "Made in Europe" strategy is designed to bolster LG Energy Solution’s market position in Europe while underscoring the quality and competitiveness of European-made battery products.