Axpo Group has finalised a multi-year contract with R.Power to optimise the operations of a 300MW/1,200MW-hour (MWh) battery energy storage system (BESS) in Poland.
The new facility will be constructed in Dzięgielewo, Mazovia province, to enhance the flexibility of the country’s power system.
The deal is said to be the largest of its kind for a single project in central and eastern Europe, and among the largest in Europe.
The contract will commence with the facility’s commercial operation and extend through to the end of 2038.
It is structured around a profit-sharing model between Axpo and R.Power, alongside a minimum revenue guarantee.
This approach aims to secure the future of Dzięgielewo, an integral part of R.Power’s 1.7GW/6.3GW-hour (GWh) energy storage pipeline in the country.
R.Power chief commercial officer Rafał Hajduk said: “We are expanding our energy storage base to structurally balance our growing PV [photovoltaic] portfolio and deliver stable, clean energy in Europe.
“Long-term commercialisation agreements such as this are not only fundamental to delivery of our own pipeline but also lay the groundwork for growth of utility-scale BESS in highly promising markets such as Poland.”
BESS optimisation involves managing the storage asset’s operation to maximise revenue and asset value, including cycling energy and providing ancillary services.
Axpo’s involvement offers a guarantee of minimum revenues, enhancing the project’s bankability and reducing investment risk for R.Power.
This development further solidifies Axpo’s role as a leading partner in energy storage technology and a trading partner for BESS in Poland.
Axpo Polska managing director Mateusz Marczewski said: “Our partnership with R.Power on the Dzięgielewo project is another step towards building Axpo’s leading position in the large-scale energy storage segment in Poland.
“Our goal remains to maximise the value of our partners’ assets throughout their entire life cycle – from participation in power and ancillary services markets to a commercialisation model tailored to bankability requirements.”
Axpo, with a 25-year presence in Poland, ranks among the largest independent energy dealers and renewable energy offtakers in the country.
It manages a renewable energy portfolio of approximately 16TW-hours (TWh) and is involved in the development of PV, BESS and biogas projects.
In Poland, R.Power and Axpo have formed a long-standing partnership that includes power purchase agreements (PPAs) for around 300MW of PV capacity.
They also have a contract to optimise the 150MW/300MWh Jedwabno storage facility.
