Energy storage is a topic that in recent years has been one of the cornerstones of discussions about the modern power system, but also gets atention as an opportunity to stabilise the system as a whole, as well as supplies to different groups of customers, adding up to also as an opportunity to make money for some of the operators of these storage facilities.
According to data from the Polish TSO (Polskie Sieci Elektroenergetyczne), as of January 2025, connection conditions have been granted to energy storage facilities with a capacity of nearly 22 GW (of which 2.5 GW are co-located assets, i.e. connected to photovoltaics and/or onshore wind) [1].
Many residential as well as industrial customers are facing issues due to rising energy prices. Recent research by the National Debt Register shows that as many as four out of five Poles are concerned about rising living costs and bills [2]!
This is where the aforementioned energy storage systems come to the rescue, however, as they are already having a positive impact on alleviating fears of rising energy costs and, for services and industry, also the volatility of supply, their role will only increase in the coming years.
Not just security of supply, and avoiding higher energy prices…but also the opportunity to make some money on the side.
Investing in energy storage can bring substantial economic benefits, not only in terms of energy savings, but also in terms of energy trading.
One of the most popular aspects of using energy storage is so-called price arbitrage. This is based on the simple principle of ‘buy low, sell high”, applied to wholesale energy or balancing market. However, it is worth mentioning that the end consumer cannot exploit this advantage for his or her own use, using energy taken from the grid. However, a prosumer who generates energy from his installation into the grid can do that – he will be billed at the RCE price applicable for that unit of time.
Using the example of one full day, 24 hours and charging storage at relatively low electricity prices on the Day-Ahead Market and discharging it in the evening peak when prices are high, a lot of money can be made – in the example below, as much as 380 PLN per 1 MWh.
Taking the above into account proves, that 10 MWh BESS, which would cost circa 10 million PLN would hit the intercept point between costs and revenues after a little longer than three years.
However, this is not an extreme example of price arbitrage, and the differences between prices in the energy market, changing in hourly regime, and the balancing market (where capacity is booked for every hour and energy – for every 15-minute minutes), will become greater over time due to the high penetration of renewable sources and the increasing start-up coal- or gas-fired power plants costs due to the need to operate them using at least their minimum technical capacity.
An essential point to take care of. in order to take advantage of the advantage offered by price arbitrage with the use of energy storage, when being an industrial customer, is a licence for electricity trading (according to the Energy Law).
The most popular choice – battery energy storage – your own electricity “off the shelf”
Battery Energy Storage Systems (BESS) are currently the most mature (apart from pumped storage) and easily scalable electricity storage technology.
The leader in BESS deployment is China, where more than 108 GWh of usable battery storage capacity in 2024 alone were deployed [6]. In Europe, the UK leads the way with 4.3 GW of installed battery capacity [3].
There are many advantages of having your own energy storage based on this technology – it is the cheapest scalable energy storage technology available – according to analysts at BloombergNEF, BESS prices using this technology have fallen in the last year the most since 2017 to $115 per kWh, down 20.1% [4]. In addition, the system is able to operate almost instantly, providing energy and power to the users’ needs.
Will energy storage save the Polish consumer?
Considering energy prices, as well as the stability of supply associated with the upcoming power gap, which is already causing concerns about security of supply, but also an increase in energy prices, investment in energy storage is a solution to think of – the one for years to come.
Sources:
[1] Wykaz magazynów energii, systemów dystrybucyjnych i instalacji odbiorczych planowanych do przyłączenia, PSE, 01/2025
[2] https://krd.pl/centrum-prasowe/informacje-prasowe/2024/polacy-spodziewaja-sie-gigantycznych-rachunkow-za-ogrzewanie-ich-zdaniem-w-ciagu-roku-wzrosna-tez-i
[3] https://www.coolest-gadgets.com/battery-storage-capacity-statistics/
Hubert Put
Senior Energy Consultant and Polish Market Expert at Montel. His main areas of interest are energy markets, energy regulation, energy innovation (primarily in offshore wind and hydrogen), and energy sustainability strategies. His work in full-time positions was focused on e.g. Local Area Energy Plans (LAEPs), Power Purchase Agreements (PPAs) and Guarantees of Origin (GoOs/REGOs) and the impact of regulatory changes on the energy industry, in Germany, the UK and Poland. Participant of the Road to C-Suite postgraduate programme by the European Institute of Innovation and Technology (EIT). Double Master of Engineering from AGH University of Science and Technology in Cracow and IST in Lisbon. Holder of the PRINCE2® Practitioner certificate and the alumnus of the premiere edition of the OECD Youthwise programme, through which he had the chance to be the voice of the younger generation on fair energy transition and sustainable development. Graduate of courses in project management organised by the University of Catania, and knowledge of energy markets organised by the European Federation of Energy Traders (EFET). One of the leaders of the World Energy Council Polish Branch. Author of a number of popular science articles on the impact of regulation on offshore wind energy or grid development, which have been published in professional media in Poland and in Germany, and co-author of analyses for e.g. Polish Youth Energy Council or UN Global Compact Network Poland.
