The auction which took place last month (December 2023) cleared at a fixed, consumer price-indexed (CPI) price of PLN 244.90/kW (US$61.73) per year for the contracts which start in 2028, the Polish state bulletin revealed yesterday (9 January). The contract lengths range from 1 to.
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As expected, Poland''s latest capacity market auctions have highlighted a significant shift towards the battery energy storage systems (BESS) beside the fact that the de-rating factor has been significantly decreased.
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From ESS News The Polish capacity market auction for 2029 which awarded more than 8 GW of capacity contracts was a success for battery energy storage projects.
Poland has concluded its 2028 capacity market auction, awarding around 1.7GW of contracts to battery storage projects.
Energy storage systems are a relatively new technology in the Polish capacity market. They have participated in two auctions so far: making their official debut in 2022 (with 2027 delivery year) and subsequently dominating the competition in the 2023 auction.
As a result, the total capacity obligations secured exceed 8 GW, with over 1.5 GW attributed to contracts with foreign entities. Approximately 2.5 GW was secured by “new generation capacity market units”. This designation, exclusively applied to Li-ion energy storage projects in previous auctions, i.e. to BESS.
While final results are yet to be released in January, industry insiders assess that the procurement exercise could have catalyzed around 4.2 GW of battery energy storage system (BESS) capacity pre-derating.
The capacity market is set to kickstart the large-scale BESS market in Poland by providing the basic building blocks of the business case, according to numerous delegates interviewed by Energy-Storage.news at Energy Storage Summit Central Eastern Europe (CEE) 2023 in Warsaw in September.
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