Iberdrola Strengthens Poland’s Energy Transition with €44 Million Investment in Large-Scale Battery Storage
Iberdrola Renewables Polska, the Polish subsidiary of global energy major Iberdrola Group, has taken a significant step forward in strengthening Poland’s power system resilience and accelerating the country’s clean energy transition. The company has secured €44 million (approximately PLN 186 million) in financial support from the Polish National Fund for Environmental Protection and Water Management (NFOŚiGW) to develop three large-scale battery energy storage system (BESS) projects with a combined installed capacity of 160 megawatts (MW).
The funding will support the construction of two battery storage facilities in the Mazovia region—Pniewnik 1 with a capacity of 38 MW and Pniewnik 2 with 42 MW—as well as the Zushi BESS project, an 80 MW installation located in Lower Silesia. Together, these projects represent a major expansion of Iberdrola’s energy storage footprint in Poland and underline the growing role of battery technologies in modern power systems.
Enhancing Grid Stability and Flexibility
Battery energy storage systems are increasingly recognized as a cornerstone of energy system modernization, particularly in countries like Poland that are rapidly expanding renewable energy capacity. These systems operate by storing electricity as chemical energy during periods of low demand or high renewable generation and releasing it back into the grid when demand rises or renewable output falls.
This ability to balance supply and demand in real time makes BESS installations essential for managing intermittency from renewable sources such as wind and solar. In practice, the new Iberdrola projects will help stabilize the Polish grid, reduce the risk of power shortages during peak consumption periods, and improve the overall efficiency of electricity distribution.
In addition to peak shaving and load balancing, battery storage can provide a wide range of ancillary services, including frequency regulation, voltage support, and reserve capacity. These services are becoming increasingly important as Poland transitions away from conventional coal-fired power plants toward a more diversified and decarbonized energy mix.
Strategic Locations Across Key Regions
The geographic distribution of Iberdrola’s new storage projects reflects a strategic approach to supporting grid needs in different parts of the country. The Mazovia region, home to Poland’s capital Warsaw and a major center of electricity demand, stands to benefit from the two Pniewnik battery installations. These projects will help manage local grid congestion and support the integration of renewable energy generated in and around the region.
Meanwhile, the Zushi BESS project in Lower Silesia, with its substantial 80 MW capacity, will play a critical role in strengthening grid stability in southwestern Poland, an area with growing renewable generation and cross-border power flows. By deploying storage assets in multiple regions, Iberdrola is contributing to a more balanced and resilient national power system.
Public Funding Supporting the Energy Transition
The financial backing provided by the National Fund for Environmental Protection and Water Management highlights the Polish government’s increasing commitment to energy storage as a key element of its climate and energy strategy. Public funding mechanisms such as this are designed to accelerate investment in low-emission technologies, reduce reliance on fossil fuels, and improve energy security.
By supporting battery storage projects, the fund aims to address some of the structural challenges facing Poland’s electricity system, including aging infrastructure, rising demand for power, and the growing share of variable renewable energy sources. Iberdrola’s projects align closely with these objectives, making them well suited for public financing support.
Iberdrola’s Expanding Presence in Poland
The newly announced battery projects form part of a much broader strategy by Iberdrola to expand its operations in Poland. The company’s current project portfolio in the country totals approximately 940 MW, encompassing renewable generation assets and around a dozen battery energy storage projects at various stages of development.
Iberdrola has identified Poland as a priority market due to its strong economic growth, increasing electricity demand, and ambitious long-term decarbonization goals. The country’s efforts to modernize its power sector and align with European Union climate targets create significant opportunities for international energy companies with expertise in renewables and grid-scale storage.
Energy Storage as an Enabler of Electrification
According to Iberdrola, energy storage is a critical enabler of electrification, supporting the broader transformation of energy consumption across industry, transport, and residential sectors. As electrification expands—through electric vehicles, heat pumps, and digital infrastructure—power systems must be able to respond quickly and reliably to fluctuating demand.
Battery storage helps bridge this gap by providing fast-response capacity that can be deployed within seconds, unlike conventional power plants that require longer start-up times. This capability is particularly valuable in supporting renewable-heavy systems and reducing the need for fossil fuel-based peaking plants.
Supporting Europe’s Climate and Energy Goals
Iberdrola’s investments in Poland also align with broader European Union energy and climate objectives, including emissions reduction, energy security, and market integration. Large-scale battery storage is expected to play a central role in achieving these goals by enabling higher shares of renewable energy, improving cross-border electricity flows, and reducing system costs over the long term.
As more storage capacity comes online, Poland will be better positioned to manage price volatility in electricity markets, reduce curtailment of renewable generation, and enhance the reliability of its power supply during extreme weather events or supply disruptions.
Source Link: https://www.iberdrola.com/
