PGE Group Awards US$385 Million Contract to LG Energy Solution for 263MW BESS

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PGE Group, the state-owned Polish power producer has chosen LG Energy Solution for a new 263MW/900MWh battery energy storage system (BESS) worth US$385 million. The facility is set to be constructed in Żarnowiec, southern Poland at the site of the PGE pumped hydro facility. Furthermore, the facility is expected to provide grid services to the TSO and help balance the output of wind farms. PGE is planning to build both onshore and offshore in the Baltic Sea which will feed into the facility. LG Energy Solution won the tender after PGE put one out in June.

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Commission Date for the PGE Group, LG Energy Solution 263MW BESS

The Żarnowiec facility is expected to be commissioned by 2027. What’s more, there’s another BESS facility that has been planned in Gryfino that will also work hand in hand with this one to increase the regulation capacity of the power system and integrate more renewables. This facility will be even larger than the Żarnowiec BESS at 400 MW. It will be operated by PGE Group as well. Additionally, it will be connected to the transmission system at a voltage of 400 kV. Dariusz Marzec, the PGE Group board president said the company is accelerating its investments in battery storage due to the increase in the share of renewable energy on the grid.

The BESS site located near the pumped hydro facility
The BESS site located near the pumped hydro facility

Project Overview

Location: Żarnowiec, southern Poland

Developer: PGE Group

Construction Team: LG Energy Solution

Commission Date: 2027

BESS Facilities in Poland

At the moment, the state-owned company owns two BESS facilities and 5 years ago, they inaugurated the first modular energy storage system with a  a capacity of around 2.1 megawatts (MW) and a storage capacity of 4.2 megawatt hours (MWh). Located in Rzepedź in the Podkarpackie voivodeship (southeastern Poland), the system is designed to support the reliability of the local distribution network. PGE then launched its second energy storage system in 2021 in Góra Żar in the Silesian voivodeship (southern Poland). It has a capacity of 500 kilowatts (kW) and a usable capacity of 750 kilowatt hours (kWh).

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