Large-Scale Energy Storage – The Key to Stable and Clean Energy

25/07/2025
Energy Storage

The energy transition is accelerating – renewable energy sources (RES) are playing an increasingly important role in Poland’s energy system. The government plans that by 2030, over half (56%) of electricity will come from RES (source: reuters.com). However, sources like wind and solar are non-dispatchable and weather-dependent. So how can we ensure stable power supply with a growing share of renewables? The answer lies in industrial and large-scale energy storage systems, which allow energy to be stored during periods of surplus and used when there is a deficit. As a result, the power grid becomes more stable, and the energy cleaner – coming more from stored renewable surpluses rather than backup conventional power plants.

The Growing Role of Energy Storage in Stabilizing Renewables

Large-scale energy storage systems play a key role in integrating renewables into the energy system. They stabilize RES by balancing fluctuations in energy supply and demand. When wind and solar farms generate more energy than needed, the surplus can be stored instead of wasted. Later, during periods of low wind or no sunlight, the stored energy is fed into the grid, ensuring continuous power supply. This mechanism not only prevents wind turbines from being shut down or PV farms from being curtailed, but also increases the efficiency of green energy use.

Example: A large-scale battery energy storage system integrated with a wind farm. Such installations store surplus renewable energy and stabilize grid operations.

Thanks to energy storage, grid operators can more easily maintain frequency and voltage stability. The fast response of storage systems enables them to provide regulatory services – instantly delivering power in case of sudden drops in generation or spikes in demand. This is crucial for national energy security: as emphasized by the National Fund for Environmental Protection and Water Management (NFOŚiGW), the development of energy storage will improve the stability of the National Power System (KSE) and enhance Poland’s energy security. In practice, this means a lower risk of blackouts and a more flexible power system capable of integrating large volumes of variable renewables.

Moreover, forecasts indicate a rapid growth of the energy storage market in the coming years. According to the draft National Energy and Climate Plan, under an active transition scenario, Poland could have around 2 GW of storage capacity by 2030 and even 8–9 GW by 2040. This means energy storage will quickly move from pilot projects to a standard part of infrastructure. Large-scale battery installations of hundreds of megawatts – once rare – are becoming reality. The largest planned battery storage facility in Poland (in Żarnowiec) is expected to have over 260 MW of power and more than 980 MWh of capacity, making it one of the largest such installations in Europe. These projects confirm that large-scale energy storage will be a pillar of modern, low-emission energy systems.

Energy Storage and Energy Independence

Large-scale energy storage also contributes to greater energy independence – at the national, regional, and business levels. Why? Because it allows locally generated energy to be stored and used when most needed, reducing reliance on imported fuels or external supplies. The more energy we store from our own RES, the less we depend on reserves from conventional plants (often powered by imported gas or coal).

At the national level, large storage systems enhance supply security – creating an energy buffer in case of import disruptions or failures of large generation units. They also enable better management of domestic solar and wind production, allowing Poland to expand RES more boldly without compromising grid stability. This is key to achieving energy self-sufficiency based on domestic renewable resources.

The local and business dimensions are equally important. For example, in rural areas, energy storage combined with RES increases the energy independence of farms and local communities, protecting them from electricity price spikes and ensuring backup power. The “Energy for the Countryside” program (more on this below) explicitly aims to boost rural energy independence – thanks to subsidies for RES installations with storage, farmers and local businesses can access cheaper and more reliable energy, especially from renewables. For industrial enterprises, having their own energy storage means independence from grid fluctuations – the company becomes more resilient to external power outages and can maintain production continuity even in crisis situations.

Examples of Applications and Benefits of Energy Storage

Large-scale energy storage systems are used both within the power grid and directly by end users (e.g., businesses). Below are the key benefits in each area.

Grid Stabilization and Renewable Integration

For system operators, energy storage is like a Swiss army knife – offering multiple services simultaneously. Beyond balancing renewables, large-scale storage systems can provide ancillary services to the grid, including frequency regulation, power reserves, and power quality improvement. In peak shaving mode, they can relieve the grid during demand spikes by releasing previously stored energy, reducing the risk of overloads and blackouts. Storage systems can also act as backup for critical grid components – instantly supplying energy in case of sudden shortages before slower reserves kick in. All of this increases the flexibility and resilience of the National Power System (KSE). It’s no surprise that building energy storage is considered essential for stabilizing the power system and efficiently utilizing the growing output from renewables. Thanks to storage, green energy that would previously be wasted (e.g., due to grid constraints) can now be fully utilized, replacing more expensive and carbon-intensive conventional generation.

Support for Businesses and Cost Savings

For companies, investing in energy storage offers tangible economic and operational benefits. Businesses with high electricity consumption (e.g., in manufacturing, data centers, cold storage) can reduce energy bills by storing electricity when it’s cheaper (e.g., at night or from their own solar panels) and using it during peak hours when grid energy is more expensive. This price arbitrage and peak shaving translate into real savings. Moreover, having an on-site energy storage system ensures operational continuity – in case of grid failures or power outages, batteries can support critical processes, protecting the company from costly downtime. Experts note that with public support for purchasing storage systems, companies can achieve faster returns on investment while benefiting from lower energy costs and uninterrupted production. Additionally, a business with its own storage system becomes an active participant in the energy transition – it can provide Demand Side Response (DSR) services or even sell stored energy on the market, generating extra revenue.

Support Programs and Funding for Energy Storage

The development of the energy storage market in Poland is currently supported by significant funding programs that reduce investment barriers. One of the most notable is the latest program from the National Fund for Environmental Protection and Water Management (NFOŚiGW), aimed at businesses. On April 4, 2025, applications opened for funding the construction of large-scale energy storage systems (under the program “Electric Energy Storage and Related Infrastructure…”). This priority program has a total budget of PLN 4.15 billion in grants and loans – an unprecedented financial boost for the energy storage sector. The budget includes PLN 3.735 billion in grants and PLN 415 million in loans. A single project can receive up to 45% of eligible costs in grants (plus an additional 10% for medium-sized and 20% for small enterprises), and complementary loans – up to 100% of costs on preferential terms. Importantly, the program targets large investments – covering storage systems with a minimum capacity of 2 MW and at least 4 MWh. Funding can cover all key components of such systems (containerized batteries, inverters, transformers, battery module installation, management systems, and grid connections). NFOŚiGW emphasizes that applications will be accepted until May 30, 2025, or until funds are exhausted. The program’s goal is to strengthen grid stability and energy security through the development of storage systems.

The National Fund for Environmental Protection and Water Management has allocated over PLN 4 billion to support the construction of energy storage systems for businesses. The program offers grants of up to 45% of investment costs and loans covering up to 100% of eligible expenses.

This NFOŚiGW program presents a major opportunity for companies planning energy storage investments. Thanks to the grants, the entry cost into this technology is significantly reduced, allowing businesses to achieve project profitability more quickly. Public support acts as a catalyst: investments previously postponed due to high costs are now feasible. Polish manufacturers and suppliers of energy storage technologies have already prepared offerings that meet the program’s requirements. For example, Impact Clean Power Technology S.A. – a leading Polish battery system manufacturer – provides comprehensive energy storage solutions (from design to installation) that qualify for funding, helping beneficiaries make the most of the available resources. By combining public funding with innovative technological solutions, Polish companies can more easily embark on the path of green energy transformation – toward a stable, cost-effective, and low-emission energy future.

It’s worth noting that in addition to the program for large-scale storage, other support mechanisms are also available. The previously mentioned “Energy for the Countryside” program has a budget of PLN 1 billion and supports farmers, rural businesses, and emerging energy cooperatives in RES investments integrated with energy storage. It covers the construction of photovoltaic, wind, biogas, and small hydro installations along with storage systems. Grants can reach up to 65% of costs (depending on the energy source), and the storage system as part of a larger investment can receive up to 20% in funding. This program aims not only to reduce electricity bills in rural areas but also to increase local energy independence and provide backup power in communities far from major cities. It shows that energy storage is treated as an integral part of prosumer and distributed energy development.

Summary

Large-scale energy storage systems are emerging as a key component of the modern energy system. They enable the full potential of renewable energy sources (RES) by stabilizing their output, strengthening supply security, and supporting the development of national and local energy independence. For businesses, they offer an innovative tool for optimizing energy costs and ensuring operational continuity. Importantly, the development of energy storage in Poland is supported by significant funding – including the NFOŚiGW program with a budget of over PLN 4 billion, which can make these technologies much more accessible to investors. The outlook for the energy storage market is highly promising. As battery technology costs continue to fall and the value of flexibility increases, more and more stakeholders – from grid operators to private enterprises – will turn to energy storage. In the coming years, we can expect storage systems to become a common sight: next to wind and solar farms, alongside industrial facilities, and even within local microgrids. This trend points to a cleaner, more stable, and more resilient energy system for all. Large-scale energy storage is the foundation of the green energy future – a future where reliability goes hand in hand with climate neutrality. Supported by storage, renewables will become the backbone of the energy system, delivering stable and clean power around the clock, regardless of weather conditions.