POLAND Trends and Developments Contributed by: Agnieszka Stankiewicz, Rafał Siwek, Filip Janeczko and Samanta Wenda-Uszyńska, Greenberg Traurig, LLP
Energy storage – a new asset class The growing need to stabilise Poland’s energy grid has made energy storage a key element of the energy resource management strategy. Technology is open - ing new opportunities for the Polish energy sector, enabling more efficient use of renewable energy and strengthening the country’s energy independence. Energy storage systems are a key component in inte - grating renewable energy sources into the energy grid. Energy storage systems enable the accumulation of surplus energy generated during periods of intense sunlight or strong winds. When production from these sources decreases, the stored energy can be used to meet current demand. Investors are beginning to treat energy storage sys - tems not only as support for renewable energy instal - lations but also as standalone assets with revenue- generating potential. The main challenges facing energy storage systems are the availability of financ - ing and connection to the grid. Key factors for lenders include revenue stability, investment costs, and the effectiveness of the technology applied over the long financing period.
which very cold weather translated into weaker winds and a decrease in energy production of almost 30%. Additional hurdles for renewable energy include: • inadequate grid infrastructure, leading to high pro - duction from photovoltaics and wind farms being curtailed due to limited energy storage capacity); • lengthy administrative procedures; • limited land availability (especially due to military zones); • limited availability of financing; • high investment costs (especially true for offshore wind farms); and, • with respect to wind farms, restrictive regulations specifying the minimum distance of turbines from residential buildings (the so-called 700m Act) that limit the availability of land. Despite all these difficulties, investor interest in renew - ables remains strong although, as with other asset classes, investors are looking for ways to mitigate structural risks. One way to address grid constraints is the use of battery energy storage systems (BESS).
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