R Power and Axpo have signed a multi-year agreement to optimise a 300MW/1200MWh battery energy storage system in Dzięgielewo, Poland.
The contract covers full optimisation services for the facility and is the largest agreement of its kind in Central and Eastern Europe, R.Power said.
The deal will run from the start of commercial operations until the end of 2038 and is based on a profit-sharing mechanism with a minimum revenue guarantee, Axpo added.
The Dzięgielewo project forms part of R.Power’s 1.7GW/6.3GWh energy storage pipeline in Poland and is expected to increase system flexibility and support renewable integration.
It follows a previous agreement between the companies for the Jedwabno BESS project and extends their long-standing partnership in Poland.
“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,” said Mateusz Marczewski, managing director of Axpo Polska.
“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.”
“The trust we have built with R.Power through PPA projects and our recent agreement for Jedwabno enabled us, in a short time, to define a cooperation framework for an asset as large as the Dzięgielewo storage project,” said Krzysztof Włodyga, head of origination at Axpo Polska.
“A key challenge was scaling solutions to 300 MW and refining them in the context of rapidly evolving operational and regulatory standards.”
“We are expanding our energy storage base to structurally balance our growing PV portfolio and deliver stable, clean energy in Europe,” said Rafał Hajduk, chief commercial officer of R.Power.
“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.”