The Future of Photovoltaics in Poland: Challenges, Reforms, and the Role of Energy Storage. Summary of the PV Congress 2025.
This year’s congress of the Polish Photovoltaics Association was, as always, a platform for intense discussions about the future of the photovoltaic sector in Poland. Experts and industry representatives debated the key challenges facing the sector, including the issue of production limitations (so-called redispatching), which mainly affects photovoltaic farms. Other topics included the reform of the auction system, hybridization of PV farms, as well as trends, barriers, and challenges in the development of photovoltaic projects.
Reform of the Auction System
The current support system for renewable energy sources (RES) is valid until 2027. Therefore, discussions are already underway regarding its future shape and the principles on which it will operate. A key change will be the inclusion of non-price criteria, such as technology quality or grid integration. A representative of the Ministry of Climate and Environment announced during the Congress that the new support system will focus on source flexibility, which may mean a requirement to build photovoltaic farms with energy storage systems.
A major topic currently relevant to the industry is the rules for settling negative or positive balances within the auction system. The balance is settled in three-year cycles based on the difference between the average market price of electricity on the exchange (TGeBase) and the auction price. When the market price is lower than the auction price (negative balance), the producer receives compensation. When the market price is higher than the auction price (positive balance), the investor returns the surplus. Recently observed price drops during PV peak generation hours mean that the prices obtained by PV installations are significantly lower than average market prices—by several dozen percent in some cases. This leads to a significant reduction in the profitability of installations, as the differences are not compensated for under the current auction system. One proposed solution from the industry is to use the TGePVm index instead of TGeBase. TGePVm is a weighted average price for 24 hours of electricity delivery in a given month, calculated using weights that reflect the efficiency of electricity generation from photovoltaic sources in Poland.
Energy Storage
The low energy selling prices achieved by PV farms are pushing investors toward building battery energy storage systems (BESS) alongside their installations. Hybridization allows for charging the batteries when electricity prices are low (typically during PV peak production hours) and selling the energy in the evening hours, when prices can be hundreds of zlotys higher.
An energy storage unit can also operate as a standalone source, drawing energy from and feeding it back into the grid. Industry experts indicate that currently about ¾ of the revenue for such a storage unit comes from providing balancing services, which are attractively priced due to the still limited number of storage systems. The remaining revenues come from energy market arbitrage and, potentially, from winning capacity market auctions. As the number of grid-connected storage units increases, balancing market prices will stabilize (as this market has relatively low volumes), and the revenue structure will shift in favor of arbitrage.
The application process for energy storage construction funding, organized by the National Fund for Environmental Protection and Water Management, has just concluded. According to released data, around 630 applications were submitted, with a total project value exceeding PLN 70 billion—clearly indicating very high interest from investors. Applicants requested nearly PLN 28 billion in funding. The total budget of the program is PLN 4.15 billion, of which PLN 3.7 billion is allocated for grants and PLN 415 million for loans.
Summary
The photovoltaic farm sector is undergoing dynamic transformation. The rapid increase in installed capacity in recent years has led to energy surpluses around midday, resulting in price drops and even periods of negative prices. Additionally, PV production is being curtailed due to excess energy in the system that currently cannot be utilized. Most investors are analyzing or already in the process of adding energy storage to their PV farms, aiming to address these challenges. This appears to be the main trend that will continue over the next few years. As the number of storage systems increases, energy price volatility will stabilize, which in time may make operating a standalone PV farm (without storage) attractive again.
