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Capital expenditures in 2023

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Electricity distribution

Energy storage

In order to fully exploit the potential of dispersed generation sources and ensure safe operation of the system, it is necessary to modernise the grid and build energy storage facilities.

The PGE Group is carrying out analytical and preparatory work on energy storage development opportunities. The strategic aspiration is to build 800  of storage capacity by 2030. The PGE Group currently sees potential for the development of electrochemical electricity storage facilities, including large-scale energy storage facilities operating at the Żarnowiec pumped storage power plant with a capacity of up to 270 and a storage facility in Gryfino with a capacity of 400 , as well as approx. 50 smaller energy storage facilities cooperating with the main power supply points in the area of PGE Dystrybucja, with a total capacity of over 250 . At the same time, the Group recognises the opportunities associated with the development of new pumped storage power plants, which also perform the function of energy storage in the National Power System, and to this end is developing the ESP Młoty project with a capacity of 1 050 .

In 2023, the following activities have been performed in the PGE Group regarding the
implementation of the strategy for the objective Construction of 800 MW of energy
storage facilities by 2030:

  • Signing of a connection agreement for a hybrid energy storage facility in Żarnowiec.
  • Expected non-refundable EUR 200 million support under the National Recovery and Resilience Enhancement Plan adopted by the EU Council in December 2023 and the energy storage system measure for a large-scale energy storage facility in Żarnowiec.
  • Award of a PLN 43 million grant for PGE Dystrybucja S.A. from the Modernisation Fund for 3 grid storage facilities with a power of 7 MW and capacity of 19 MWh.
  • Acquisition of conditions for a 400 MW connection to an energy storage facility in Gryfino.
  • Achievement of approximately 90 MW in distributed energy storage facilities.
  • Development of approx. 20 hybrid energy storage projects with a capacity of over 500 MW.
  • Development of an energy storage project at the Kraków CHP plant with a capacity of approx. 90 MW.
  • Analysis of the possibility of using energy storage facilities to support the reliable and safe supply of green energy to the Polish railways.
  • Work under the project Młoty PSP plant

Hybrid electricity storage in Żarnowiec – an innovative project on a European scale

Batery Energy Storage System (BESS)

  • Nominal rated power
    not lower than 205 MW
    Rated capacity
    not lower than 820 MW

Pumped storage power plant

  • Installed capacity
    716 MW
    Rated capacity
    3,600 MWh

Hybrid plant in Żarnowiec (Peak and Pumped Storage Plant + Battery Electricity Storage
in Żarnowiec with a total rated power of 921 MW and 4.6 GWh rated capacity)

Equivalent to the capacity of the largest conventional units in Poland

Will enable the restoration of the energy system

Will supply energy to approximately 200 000 households for 5h (at an average load of 5 kW per home)

PGE’s energy storage project in Żarnowiec with a capacity of more than 200 MW, on a unique scale in Europe, has been granted Poland’s first concession promise for storing electricity in a large-scale electrochemical energy storage system.

The promise was issued by the President of the Energy Regulatory Office. Project was also granted a decision on environmental conditions, which is a necessary and extremely important step for continuing the project work.

The construction of the large-scale Battery Energy Storage System (BESS) next to the (ESP) Żarnowiec with a power rating of no less than 200 and capacity of more than 820 is one of the largest projects of its type in Europe.

The project aims to combine the existing ESP Żarnowiec with a rating of 716 with BESS with a rating of no less than 200 and capacity of over 820 . This innovative hybrid setup with a power rating of at least 921 and capacity of more than 4.6 ">GWh, which corresponds to the capacity of the largest conventional units in Poland, will be capable of providing a full range of regulatory system services, providing “restoration” of the power system and supplying electricity to approx. 200,000 households for a period of at least 5 hours (given an average load of 5kW per household).

The planned BESS was entered in the Capacity Market register and the on-going project work resulted in obtaining the conditions for connecting it to the transmission grid. In addition, BESS will perform technical and commercial balancing for unstable renewable energy sources, i.e. onshore and offshore wind farms and photovoltaic farms owned by PGE Group.

The project is located approx. 10km from the Baltic Sea, where PGE holds three location permits for the construction of offshore wind farms with a total capacity of 3.5 GW.

PGE Group’s “Lotnisko” wind farm with a capacity of approx. 100 and the potential to add a further 140 , including large-scale farms, is situated some 30km from ESP Żarnowiec and the planned energy storage system. All of these PGE Group assets will be connected to the National Power System through the 400/110 kV substation Żarnowiec located some 2km from ESP Żarnowiec and BESS and the 400 kV substation Choczewo, which is being built for offshore wind farm purposes in the vicinity (approx. 15-20km) of the Żarnowiec substation. Connecting these units within one area of the National Power System will make it possible to integrate green electricity produced by these assets and will enhance their flexibility and controllability. 

The potential of the planned hybrid system may also prove to be helpful in increasing the energy security of Poland and the Baltic states. It will also increase the competitiveness of energy markets and the synchronisation of the energy systems of Lithuania, Latvia and Estonia with the system of continental Europe through the Harmony Link project, which is an interconnector for the exchange of electricity between Lithuania and Poland. With this connection, Lithuania’s electricity system will be linked to the Polish system via a 330-kilometre-long submarine cable between the Żarnowiec substation in Poland and the Dorbian substation in Lithuania.

The scale, functionality, location and importance of this project for the National Power System and the development of renewable energy sources makes it possible to state that it is an innovative project not only on a national scale but also in Europe.

In July 2024, PGE Polska Grupa Energetyczna launched a procurement procedure for the design and construction, on a turnkey basis, of the BESS in Żarnowiec.

Energy storage facility in Gryfino

The project involves the construction of a 400 MW Gryfino electricity storage facility.

The installation will be built in Nowe Czarnowo in the West Pomeranian Voivodeship. The facility will be able to supply electricity to more than 100 000 households and will be one of the largest energy storage facilities in Europe. It will also strengthen the level of energy security of the national power grid.

The project has already obtained connection conditions issued by the Transmission Network Operator – Polskie Sieci Elektroenergetyczne. The investment is planned to be completed in 2029.

400 MW

rated power of Gryfino energy storage facility

>100 thousand

households may be supplied with electricity

1050 MW Młoty Pumped Storage Power plant

Pumped storage power plants are used worldwide as the most efficient and reliable
storage facilities for huge amounts of green energy.

They take advantage of the natural terrain and are triggered at times of increased electricity demand in the region. They are a strategic piece of infrastructure and a stabiliser of the electricity system, contributing to the security of energy supply.

They also act as flood risk retention reservoirs, enabling water management in the area. Pumped storage reservoirs are an attraction that enriches the tourist attractions of the region.

The realisation of the Młoty PSP plant project will support the national energy transition and is of key importance for maintaining the stability of the operation of the National Power System in the south of Poland, particularly after the coal-fired units in the region have been decommissioned, while at the same time developing and increasing the share of renewable energy sources. The investment will also have an important role in ensuring a stable energy supply for the region’s residents and economy as a whole.

The PGE Group plans to build a pumped storage power station with a capacity of 1 050
MW as part of the Project. Pumped-storage power plants, which are huge energy
storage facilities, operate on the basis of two reservoirs located at different heights.

In the case of the Młoty Project, two reservoirs are planned:

  • the lower one, on the Bystrzyca River, which will also have a flood control function for the region,
  • the upper one, above, in the village of Spalona.

In June 2023, a feasibility study was completed for a pumped storage power plant in Młoty, which confirmed the economic and technical feasibility of building an energy storage facility. Following the completed study, a decision was taken to continue the investment. The investment is planned to be completed in 2030.

In October 2023. PGE Polska Grupa Energetyczna and the National Fund for Environmental Protection and Water Management signed an investment agreement to finance the construction of a pumped storage power plant in Młoty with a planned capacity of approximately 1 050 . As part of the agreement, the National Fund for Environmental Protection and Water Management will take a 49 per cent stake in the special purpose vehicle PGE Inwest 12, responsible for the construction of Młoty PSP plant. PGE will retain a majority stake of 51 per cent.

Completed works on the development of the Młoty pumped storage power plant project in 2023:

  • Acceptance of the feasibility study, which demonstrates the technical and economic viability of the construction of a pumped storage power plant.
  • Completion of a full 12-month natural inventory.
  • Signing of an investment agreement with the National Environmental Protection and Water Management Fund to finance the construction of the Młoty pumped storage power plant.
  • Submission of an application to PSE S.A. for determination of grid connection conditions.
  • Conducting a survey among residents regarding support for the investment project (almost 60% of the participants support further implementation of the investment).
  • Signing of voluntary property valuation agreements for the planned Młoty investment project with more than half of the residents.

Key benefits of Młoty project implementation

New jobs

estimated number of employees during construction approx. 1 000

Tax revenues to the Municipality

PGE CG will pay taxes to the Bystrzyca Kłodzka Municipality on the property in Młoty PSP plant.

Energy storage

Large-scale energy storage with a long lifespan to balance weather-dependent energy sources (RES)

Energy security

crucial support for the NPS after the planned decommissioning of conventional power plants in the region (e.g. Turów)

Learn more about Młoty PSP plant project at https://www.gkpge.pl/projekt-mloty