2.5GW
The newly added rated battery capacity supported by the latest capacity bidding in Poland (scheduled for delivery in 2030)
Every year: 14.7 euros/kW
The clearing price for the capacity market auction in Poland in December 2025 (adjusted according to the rated battery capacity)
65 – 79 euros/MWh
Based on the latest clearing price through bidding (excluding revenue from ancillary services), the average price difference required to achieve a 10% internal rate of return over the battery’s lifespan
With the combined effect of capacity market bidding and fluctuating electricity prices supporting the economic viability of projects, the development of new battery projects and gas-fired power plants in Poland is accelerating. Although the reduction factor used in the bidding design has been significantly lowered, the capacity market bidding in December 2025 still awarded at least 2.5 GW of rated battery capacity. The intensified price fluctuations and the decline in battery costs have made this market highly attractive. Before the price fluctuations stabilize, the pioneers will achieve the highest returns.
After estimation, the latest round of capacity market bidding awarded the 17-year contract to at least 2.5 GW of additional rated battery capacity. Although it is 1 GW less than the 2024 bidding, considering that the reduction coefficient has decreased from 61.3% to 13.4%, this scale is still quite considerable.
The adjustment of the battery reduction factor has raised the bidding clearing price, making new gas-fired power plants competitive. In the bidding in December 2025, the newly awarded gas power generation capacity reached 2.5 GW, far exceeding the 90 MW in 2024.
The clearing price means that, if only arbitrage is used as an additional source of income, assuming that the capital expenditure for the battery is 150,000 euros/MWh, then the battery needs to achieve an average daily price difference of 317 Polish zlotys/MWh (equivalent to 72 euros/MWh or 84 US dollars/MWh) over its entire lifespan in order to achieve an internal rate of return of 10%.
The current daily electricity price is rising rapidly, indicating that the market’s demand for flexible and schedulable assets is increasing. Such assets can effectively alleviate the rising coal-fired power generation costs in Poland during the evening, while addressing the issue of the increase in low-cost photovoltaic power generation and the increase in power curtailment. The price difference (the difference between the highest and lowest daily electricity prices) for four-hour battery storage in 2025 averaged 108 euros/MWh, with a year-on-year increase of 32%.