The pace of change in the Polish energy sector shows no sign of slowing. According to the National Energy and Climate Plan (NECP), photovoltaic capacity could rise from the current 21 GW to 29 GW by 2030. This projection comes from a study by the Energy Forum, a European interdisciplinary think tank based in Poland. Bringing together expertise from public administration, business, academia, and the media, the team aims to drive knowledge-based solutions for a just and effective energy transition.
Experts at the Energy Forum, analysing published connection requests, have identified that 26 GW of photovoltaic projects are currently awaiting grid approval. At the same time, the share of renewables in Poland’s electricity mix is projected to reach 56% by 2030, rising further to 69% by 2040. To accommodate these volumes, urgent upgrades to the national grid will be essential.
Editing: mg | Data source: Enegrie Forum Poland
Current and required solar and wind power in Poland for 2030 and 2040.
Low-cost renewable energy is an advantage in global competition
Energy prices remain a key concern not only for Polish industry but for Europe as a whole. According to the study, both the United States and China benefit from access to low-cost fossil fuels and renewable energy, while Poland faces high energy costs and regulatory obstacles. The Energy Forum sees a solution in the direct supply of decentralised renewable energy to industry. However, implementation is frequently hindered by complex regulations and high fees – despite legal pathways already being in place.
In October 2024, the government published a draft of the National Energy and Climate Plan, which outlines a shift in the energy mix. The goal is to enable investors to implement projects more swiftly and gain access to the electricity grid. Despite these planned reforms, significant barriers for investors remain, the Energy Forum notes. According to the draft, Poland should achieve at least 57 GW of capacity – primarily from photovoltaic and wind power – by 2030. By 2040, this figure is expected to rise to 93 GW. Connecting these volumes to the national grid will require strategic planning of photovoltaic and onshore wind sites. Grid infrastructure must be expanded and supported by intelligent, efficient management to ensure reliable power supply and voltage stability.
To address these challenges, new regulations were introduced in 2023 to support grid development planning, most notably, the introduction of “cable pooling”, which allows multiple renewable energy sources to share a single grid connection point. Direct lines between producers and consumers are also now permitted, helping to ease the load on the public grid.
From the Energy Forum’s perspective, however, these reforms are not yet sufficient to prevent a slowdown in renewable energy expansion. For instance, cable pooling should be extended to allow the connection of electricity storage systems as standalone installations. In addition, fees for direct connections should be lowered to encourage their economic viability.
The think tank also calls for further simplification: the creation of designated zones for accelerated renewable energy development, greater transparency in the grid connection process, faster approval procedures for investments, and long-term planning of grid infrastructure – potentially supported by a power auction system.
The transformation of Poland’s energy sector calls for far-reaching reforms to ensure the efficient integration of renewables into the national grid and to maintain the current momentum of expansion. While recent measures mark a step forward, regulatory barriers still need to be lowered to unlock investment and realise the goal of a climate-neutral energy system. The Energy Forum is calling for broader dialogue and the adoption of innovative, forward-looking solutions. (mg)
“Eurelectric welcomes the Baltics synchronisation to the European electricity grid. It represents another milestone for energy solidarity and will strengthen the region’s energy security and support the implementation of the Green Deal by ensuring secure, clean and affordable power across borders. We have already seen from Ukraine, the security benefits of being integrated in European energy systems and we look forward to enlarging those benefits to the Baltic region“, said Eurelectric’Policy Director Cillian O’Donoghue.
Second largest synchronous electrical grid worldwide
Also known as Continental Synchronous area, UCTE is the second largest synchronous electrical grid in the world. It supplies over 400 million customers in 24 countries including most EU countries – and as of March 2022 – Ukraine and Moldova. Managing this grid is the European Network of Transmission System Operators for Electricity (ENTSO-E).
“We should be proud that we have the world’s largest interconnected electricity market that prioritises the most efficient power source. We coordinate hundreds of kilometres of interconnected networks delivering power across borders in times of need, and especially during crises. Diversity is a strength, let’s put it to use», added O’Donoghue.
The Baltics’ integration into the EU electricity grid has been a priority for the European Commission (EC) for many years, receiving substantial EU funding. This successful integration story is even more remarkable if we consider the complexities synchronising to the power grid entails.
“When the work first began, some questioned the necessity of such a massive undertaking, but today we can all see it was the right decision. More than €1.6 billion has been invested to ensure our transmission grids are up to the task. New 330 kilowatt (kV) powerlines have been built together with batteries and synchronous condensers to make sure the Baltic grids can maintain system balance even during challenging times. In addition to the new infrastructure, we also have frequency markets that are generating new sources of revenue and driving innovation in the energy sector – largely thanks to this synchronisation project», explained Mihkel Härm, CEO at Elektrilevi, Estonia’s largest distribution system operator (DSO).
Stabilise prices – integration of more renewables
Beyond ensuring security of supply, joining the European grid will also provide more competitive energy prices to consumers. “Local energy production, combined with imports from Nordic and Central European markets, will maintain stability. Integration with Europe’s energy market will stabilise prices, as the Baltic States will gain access to more competitive and diverse electricity sources, including renewables», confirmed Darius Maikštėnas CEO of Lithuanian utility Ignitis Group.
Looking at the big picture, synchronising grids represents a crucial step in the EU integration process at times when external actors are threatening the block’s security.
“The leading companies of the Baltic energy sector have systematically demonstrated professionalism, perseverance and determination to renew and modernise their generation fleet, attract EU funding to strengthen the transmission system and implement this ambitious project. This is the moment when we become part of a united Europe again, taking responsibility for our own systems», concluded Mārtiņš Čakste, CEO at Latvian utility Latvenergo AS.
With energy security topping the agenda of the Polish Presidency of the EU Council, member states should strive to stay united even in their power transmission and distribution systems. The Baltics case showcases how grid synchronisation can offer a way out from depending on unreliable trade partners. (hcn)
The recent photovoltaics boom is a challenge for distribution system operators: For each feed-in connection application, they have to analyze the grid capacity and provide a fast response to the applicant. At Kärnten Netz GmbH (KNG), this process has been automated, so that applicants can find out in just 30 minutes whether, and to what extent, a connection is possible at their location.
The Austrian grid operator has introduced automation in response to the surge in connection applications. Thanks to excellent subsidies, the number of applicants grew 15-fold between 2018 and 2022. The staff at KNG were simply unable to cope with the flood of applications with manual processing. The company would have needed a considerable number of new staff. Instead of hiring new people, KNG decided to standardize the process from the point at which the application is submitted, right through to the customer accepting the offer, allowing a switch to a fully digital process. This required complete customer data and up-to-date grid data, including electrical topology (digital twin).
The digital process: how does it work?
Today, the process has been fully established. Customers submit their applications through a web portal. When the process had first been introduced, KNG’s staff still checked the customer data and installation data for plausibility, but even this step has since been automated. The system checks the application based on an up-to-date grid calculation for KNG’s entire low-voltage grid.
This ensures that for each new application, the current free capacity is used as a basis. The calculation also includes the load flows of 160,000 connections within the grid area. The program is based on MATLAB, a software tool, and uses electrical and local data from the geographic information system, as well as SAP customer master data. MATLAB is a KNG in-house development.
If connecting a PV installation with the capacity requested by the customer is possible, the information is transferred to the grid customer information system. If the capacity requested exceeds what is possible, the system will notify the customer of the available grid usage rights (20 kilowatts maximum) and will reserve the capacity for the customer. If expansion work on the local grid becomes necessary to enable a connection, the respective team will receive an automatic order to schedule and carry out the work within the next twelve months.
10.000 automated offers for PV connections
If a connection can be confirmed, all the necessary documents will be created and signed by the software, and sent to the customer in digital format. At the same time, the available grid capacity is recalculated and updated. According to KNG, the automation has meant that applications are now processed within 30 minutes, rather than two or three days. So far, the system has created 10,000 automated offers for PV connections. (hcn)
This article was first published by The smarter E Europe as part of a new series called “Learning from Europe”. It presents innovative and successful projects from across Europe that show how a renewable 24/7 energy supply can work. pv Europe is media partner of The smarter E Europe.
Europe’s power system is undergoing a massive transformation which is challenging the reliability of its infrastructure. The massive influx of renewables has increased our power supply variability, grid connection requests have skyrocketed in EU countries – Lithuania alone registered a 1425% increase in 2022 – and so has grid congestion due to the many distributed assets coming online. Meanwhile, cyber-attacks and extreme weather events have only grown in number.
Existing technologies can help face this complexity, optimise the existing grid, facilitate renewables integration and lower the overall investment bill according to Eurelectric’s report on Technologies supporting Grids for Speed.
“When reinforcing our grids, we must do it in a way that keeps system costs in check. Today we launch new tools to help policymakers control costs while increasing investments.”– said Eurelectric’s Secretary General Kristian Ruby. Real-life examples are:
On load tap changer transformers to keep voltage levels in check
Maintaining voltage levels in an adequate array is crucial to protect consumers equipment, but it’s not easy. Today voltage fluctuations are more common due to variable wind and solar power generation as well as the more dynamic loads caused by EV charging. On Load Tap Changers (OLTC) can dynamically regulate voltage without having to switch off transformers, unlike manual tap changers.
During periods of high power supply and low demand, distribution system operators (DSOs) can tap the transformer down to maximise renewables’ integration allowing the voltage level to rise while staying within limit. During peak demand, on the contrary, DSOs can tap the transformer position up to, for example, maximise electric vehicle (EV) penetration, allowing the voltage level to decrease thus staying within limit. This becomes practically infeasible if carried out manually, considering how frequently this would happen, making OLTC indispensable.
Their installation and operation, however, require skilled resources, advanced monitoring and control systems. In addition, OLTCs must be coordinated with other smart devices and the remaining grid equipment to ensure an optimal system performance.
Dynamic line rating to maximise grid capacity in real time weather
The conductivity of an overhead distribution power line or underground cable varies in real time based on temperature, solar radiation, wind speed and direction. Weather conditions can affect the power lines’ temperature and how far down they hang, a characteristic known as sag. The lines cannot sag too much, as they risk touching vegetation and cause a power cut.
Traditionally, grid operators have not been able to quantify external conditions to determine a line’s capacity at each period of time. DSOs conventionally take extra precautions when determining a maximum capacity, making sure that lines are stable even in the worst-case scenario. Such approach is known as conservative or static line rating. Dynamic line rating (DLR), instead, can measure the maximum current a conductor can safely carry in real time, thus optimising grid capacity at any time.
This is possible thanks to sensors and control systems. For instance, on a cool, cloudy and windy day, more power can flow through an overhead line than on a hot, sunny and calm day. DLR not only reduces the risk of power cuts, but also mitigates grid congestion and contributes to security of supply. Their implementation however can be hampered by high upfront costs and lack of standardised regulation for its operation.
High-temperature low sag conductors to increase power line capacity
High Temperature Low Sag (HTLS) conductors are conductors specifically engineered to handle higher operating temperatures with minimal sag compared to conventional ones. Traditional aluminium conductors tend to sag significantly under high temperatures limiting the amount of power that can be transmitted and posing safety risks. HTLS conductors, instead, are designed to operate efficiently at temperatures up to approximately 250°C, compared to the typical 90°C to 150°C range for conventional ones thanks to the use of advanced materials.
These technologies are tailored to specific situations. Their use will therefore depend on the issue, and topology at hand. To accelerate their deployment, Eurelectric identified four enablers:
1. Policy: regulation should adopt a forward-looking approach that incentivises investments in in a neutral way. Existing disincentives such as investment caps and outdated remuneration structures should be urgently addressed, especially if using the technology increases operating expenditure (OPEX). 2. Innovative investment strategies: new ways of working are necessary to support the implementation of these technologies. These include, for instance, anticipatory investments and higher flexibility. 3. Collaboration: partnerships among governments, regulators, system operators, market parties and customers are needed to drive innovation. 4. Skilled workforce: workers capable of implementing and managing these advanced technologies are essential.
Digitalisation as key
Last but not least: Digitalisation is the key pre-requisite for running these technologies. This includes digital systems to manage and control the grid, like Supervisory Control and Data Acquisition (SCADA) and Advanced Distribution Management Systems (ADMS). To provide these systems with accurate data, it’s crucial to collect information using smart meters, sensors, and other remote control and metering devices. Additionally, a reliable and secure communication network is essential to ensure smooth data flow between devices, substations and control centers.
New data: Eurelectric’s new report was complemented by a new interactive DSO map to show EU countries’ national infrastructure investment need, energy consumption and supply data. (hcn)
The solar energy sector stands at the forefront of the energy transition, tasked with ensuring a stable, reliable power supply while driving progress toward ambitious sustainability goals. As demand for clean energy surges, the industry must navigate challenges like grid integration, storage solutions, and fluctuating weather conditions—all while maintaining efficiency and adaptability. The question is clear: how can solar energy providers meet these demands while setting new standards for operational resilience?
A global shift is underway toward renewable energy grids, advanced storage solutions, and cutting-edge technologies. Tools such as the Industrial Internet of Things (IIoT), artificial intelligence (AI), and cloud technologies enable real-time monitoring, predictive analytics, and seamless integration with traditional systems. These innovations allow energy companies to optimize load balancing, protect equipment, and enhance reliability by analyzing electricity demand, consumption trends, and weather patterns.
The untapped potential of data
Data is pivotal in this transformation. Energy companies managing vast, distributed power grids rely heavily on structured, reliable information. Digital twins—virtual replicas of physical assets or systems—are gaining traction in the sector. These twins combine data on geometry, physical properties, and environmental factors from multiple sources, enabling real-time monitoring and predictive analysis.
A hybrid or cloud-based digital twin fosters collaboration by providing all stakeholders with a unified, accurate data source. This enhances transparency and coordination across teams and partners in the value chain. For energy providers, this level of insight enables precise, data-driven adjustments, boosting operational flexibility and decision-making.
The need for real-time insights
Despite the availability of advanced tools, a gap remains in accessing real-time data. According to AVEVA’s Industrial Intelligence Index Report, 55% of energy executives report rarely or never having real-time data when making critical decisions.
Aveva
Real-time data management plays a crucial role for intelligent grid management.
In order to leverage these benefits, all energy providers need to look for pioneer projects in their field so they can learn from each other—no matter the energy source. For example, Swedish energy giant Vattenfall addressed this challenge by modernizing its hydropower plants. With 11,475 megawatts of capacity and an annual production of 40 terawatt-hours, Vattenfall’s outdated maintenance systems relied on static data, necessitating reactive measures. To transition to a proactive approach, Vattenfall adopted the AVEVA PI (Plant Information) system, integrating historical and real-time data for advanced monitoring and analysis.
An example in modernization
Vattenfall’s AVEVA PI implementation allowed the company to perform condition-based monitoring using real-time data and automated alerts. This shift minimized unplanned maintenance, reduced downtime, and improved efficiency. Within a year, maintenance costs dropped by 1.5%, operational reliability improved, and the groundwork was laid for a future hydro information portal providing real-time KPIs and analytics.
Magnus Holmbom, Development Engineer for Maintenance at Vattenfall, highlighted the platform’s scalability and its role in ensuring planned, rather than reactive, maintenance. The pilot project showcased how digital transformation can reduce costs, enhance sustainability, and boost operational efficiency.
The role of AI in maintenance
Building on systems like Vattenfall’s, artificial intelligence is taking predictive maintenance further. Generative AI and machine learning models are now used to estimate the remaining useful life of equipment. Unlike traditional monitoring systems, which rely on static intervals, AI-driven approaches analyze sensor and operational data for subtle performance changes, enabling earlier fault detection and process stabilization.
Condition-based maintenance, supported by AI, offers a proactive way to enhance plant reliability and efficiency. By identifying anomalies early, energy providers can prevent costly disruptions and maximize the lifespan of their assets.
Technology as the catalyst for change
The energy sector is navigating complex challenges, including stringent climate targets, operational efficiency, and volatile markets. Data-driven technologies are becoming indispensable tools for addressing these issues. By leveraging real-time insights, predictive analytics, and AI, energy companies can achieve greater sustainability, resilience, and adaptability.
As these advancements reshape the industry, energy providers are not just managing change—they are leading the way toward a sustainable, efficient, and reliable energy future. (Sue Quense/hcn)
The regulatory landscape for BESS in Europe is influenced by EU directives aimed at accelerating the shift to cleaner energy sources. Notable policies include the Clean Energy for All Europeans Package and the European Green Deal, which emphasize the uptake of energy storage technologies. However, each country adopts its own set of regulations and at different pace, which can significantly impact the attractiveness of BESS investments. These regulations influence areas such as:
– Market access and participation rules
– Tariffs and fees related to electricity consumption and storage
– Incentives and support mechanisms for renewable energy and storage solutions
– Safety and environmental standards for energy storage technologies
Different revenue models & market maturity
Revenue generation for BESS is derived from various sources, including energy arbitrage, capacity markets, frequency regulation services, and ancillary services. The availability of these revenue streams varies by region based on market structures and regulations. Market maturity reflects the level of development of the energy market, the deployment of technology, and the investment climate for BESS projects. Mature markets tend to offer more robust regulatory support and established business models.
In the following BESS business cases in selected countries
Germany
Germany is the most developed market for CCE in continental Europe. It offers a dynamic environment, and we currently have one project in construction and three more in preparation with a total of approximately 50 MW. Our target is to grow our operational portfolio to around 250 MW, complemented with further assets on the medium voltage and high-voltage levels, in the course of 2026. The market is developing rapidly: CAPEX has fallen by around 30% since the beginning of the year, commercialization and financing strategies are maturing and therefore offering investors an ecosystem that supports growth.
Irrespective of our individual developments at CCE, we can see increasing capacities in Germany.The major bottleneck is and remains the availability of grid connections; local grid operators are becoming increasingly defensive regarding the operational mode of storage facilities. These limitations will impact the business case of future projects and potentially call into question the investment itself. Action on regulatory level is crucial to provide guidance to the many decentralized local grid operators in what ways BESS contributes positively to the grid efficiency. Further clarifications on the (in)famous BKZ (Baukostenzuschuss) and procedures for grid connection acceptance need to be implemented to provide the necessary certainty for BESS investors.
Italy
Italy’s energy regulations adequately support the integration of renewable sources and energy storage. The country has been implementing policy measures to enhance energy efficiency and promote decarbonization through the national energy strategy. The capacity market introduced by the Italian government and future programs such as MACSE provide opportunities for flexible power generation technologies, including BESS. The market is expanding, but the potential for revenue generation is somewhat limited compared to Germany due to the less developed ancillary services market. Italy’s BESS market is in a transitional phase, with recent regulatory changes attracting increased investment and installation, particularly in the commercial and industrial sectors.
In Italy, we find a very competitive market and yet, a clear business case for BESS still needs to be defined.Following the recent tenders for the capacity market, in which three BESS projects were also awarded a contract, it will be important to continue adapting the business models. This will likely involve a combination of merchant, capacity market and MACSE models, which will need to find a balance in line with investors’ return expectations. CCE is developing a portfolio of over 1.3 GW of BESS projects across Italy. As in Germany, the grid connection is the main limiting factor here. Thanks to years of experience in the country and many secured sites in the PV sector, we can also convert these existing sites into BESS sites or add BESS to the PV sites.
France
In France, we are at a relatively early stage and busy developing the business case; CCE France’s project pipeline currently comprises three projects. Due to the high base load capacity in the country, there is somewhat less volatility here, but green energy projects will continue to be added, which impacts grid stability.France’s regulatory framework encourages the use of storage through various programs. The Multiannual Energy Program (PPE) outlines the government’s objectives for renewable energy and storage integration.
France has also set targets for energy storage capacity by 2028, fostering investments in BESS. While the revenue potential has been positively impacted by recent policies, the overall market for energy storage remains less developed and mature if compared to other EU countries. It is developing however, particularly in large-scale BESS.
The Netherlands
The Netherlands have implemented a progressive regulatory regime supporting energy storage systems. The country fosters investments through subsidy programs for innovative storage technologies and adjustments to grid fees concerning storage facilities. Revenue generation in a market with high volatility and limited liquidity shows high promises, particularly as more renewable energy sources come online. The Netherlands boast a mature market, characterized by many projects in the commercial sector. The integration of battery storage into existing energy infrastructures is highly favorable.
In the Netherlands, we are in the process of realising the first medium-voltage storage system, which will be installed in addition to an existing PV system. With 80 GW of connection enquiries at grid operator TenneT, for large-scale storage systems, there are considerable delays in grid commitments and the market seems pretty much fully booked. We also expect further regulatory developments in connection with grid fees and currently focus our strategic approach of utilising existing grid connection capacity of PV systems for the expansion of our BESS capacity.
Austria
In Austria, we expect improved regulatory frameworks for storage facilities to arrive with the establishment of the new government. This should provide more certainty for the business case, including streamlined grid fees. Albeit this time lag, the trend for BESS should be similar to that in Germany and we are currently securing promising sites for these projects.In general, Austria has actively supported renewable energy through subsidies and feed-in tariffs in the past and today the role of BESS is increasingly recognized. So, Austria’s BESS market is developing, today however, the number of installations in stand-alone systems is relatively limited.
Romania
In Romania, the market is developing rapidly and is increasingly catching up, although the installed BESS capacities to date are manageable.What is interesting in this country market is that financing banks recommend the addition of a storage system for PV projects (to provide grid-supporting services and thus reduce project costs) and thus grant better conditions, although the profitability of the overall project may be lesser than a stand-alone PV system.An increase in stand-alone projects can be observed and I expect a considerable capacity increase in the next few years, also in view of the fact that the authorisation phases in Romania are shorter than in other EU countries.
Romania is gradually adopting policies that support renewable energy and storage systems. The government has implemented feed-in tariffs and other incentives to stimulate growth, although the regulatory framework remains less established compared to Western European countries. The revenue generation potential is limited compared to other countries discussed, but there are opportunities as market dynamics change. The recent launch of a EUR 150m modernization fund for BESS is further supporting that trend.
CCE
Structure of a stand-alone battery energy storage system (BESS).
Status Quo and Perspectives
The strategic value of a grid connection is very high in every country and presents the real bottleneck of the energy transition. This certainly applies to all countries.
European coordination would be desirable, particularly at grid operator level. The respective challenges and regulatory initiatives could be mirrored in an exchange of experiences. Defining why flexibility stands in the centre of making grids more resilient and how storage systems can contribute to grid neutrality and efficiency. Even if these are oftentimes local circumstances, there must be broader acceptance of why storage systems are so important for the expansion of our energy system.
Another general challenge is the transition of BESS stand-alone projects into so-called co- location between BESS and PV or wind. In addition to regulatory issues, this combination of technologies is highly complex in terms of structure and commercialization. Business cases need to be looked at individually and depending on the local parameters discussed in this article, a stand-alone project can oftentimes be more attractive than a co-located project.
In conclusion, the comparative analysis reveals varying levels of regulatory support, revenue potential, and market maturity. Germany and The Netherlands stand out as leading examples, Italy and France demonstrate growing interest and opportunity, while Austria and Romania are still developing their infrastructures and regulatory schemes. (Philipp Kraemer/hcn)
The regulatory landscape for BESS in Europe is influenced by EU directives aimed at accelerating the shift to cleaner energy sources. Notable policies include the Clean Energy for All Europeans Package and the European Green Deal, which emphasize the uptake of energy storage technologies. However, each country adopts its own set of regulations and at different pace, which can significantly impact the attractiveness of BESS investments. These regulations influence areas such as:
– Market access and participation rules
– Tariffs and fees related to electricity consumption and storage
– Incentives and support mechanisms for renewable energy and storage solutions
– Safety and environmental standards for energy storage technologies
Different revenue models & market maturity
Revenue generation for BESS is derived from various sources, including energy arbitrage, capacity markets, frequency regulation services, and ancillary services. The availability of these revenue streams varies by region based on market structures and regulations. Market maturity reflects the level of development of the energy market, the deployment of technology, and the investment climate for BESS projects. Mature markets tend to offer more robust regulatory support and established business models.
In the following BESS business cases in selected countries
Germany
Germany is the most developed market for CCE in continental Europe. It offers a dynamic environment, and we currently have one project in construction and three more in preparation with a total of approximately 50 MW. Our target is to grow our operational portfolio to around 250 MW, complemented with further assets on the medium voltage and high-voltage levels, in the course of 2026. The market is developing rapidly: CAPEX has fallen by around 30% since the beginning of the year, commercialization and financing strategies are maturing and therefore offering investors an ecosystem that supports growth.
Irrespective of our individual developments at CCE, we can see increasing capacities in Germany.The major bottleneck is and remains the availability of grid connections; local grid operators are becoming increasingly defensive regarding the operational mode of storage facilities. These limitations will impact the business case of future projects and potentially call into question the investment itself. Action on regulatory level is crucial to provide guidance to the many decentralized local grid operators in what ways BESS contributes positively to the grid efficiency. Further clarifications on the (in)famous BKZ (Baukostenzuschuss) and procedures for grid connection acceptance need to be implemented to provide the necessary certainty for BESS investors.
Italy
Italy’s energy regulations adequately support the integration of renewable sources and energy storage. The country has been implementing policy measures to enhance energy efficiency and promote decarbonization through the national energy strategy. The capacity market introduced by the Italian government and future programs such as MACSE provide opportunities for flexible power generation technologies, including BESS. The market is expanding, but the potential for revenue generation is somewhat limited compared to Germany due to the less developed ancillary services market. Italy’s BESS market is in a transitional phase, with recent regulatory changes attracting increased investment and installation, particularly in the commercial and industrial sectors.
In Italy, we find a very competitive market and yet, a clear business case for BESS still needs to be defined.Following the recent tenders for the capacity market, in which three BESS projects were also awarded a contract, it will be important to continue adapting the business models. This will likely involve a combination of merchant, capacity market and MACSE models, which will need to find a balance in line with investors’ return expectations. CCE is developing a portfolio of over 1.3 GW of BESS projects across Italy. As in Germany, the grid connection is the main limiting factor here. Thanks to years of experience in the country and many secured sites in the PV sector, we can also convert these existing sites into BESS sites or add BESS to the PV sites.
France
In France, we are at a relatively early stage and busy developing the business case; CCE France’s project pipeline currently comprises three projects. Due to the high base load capacity in the country, there is somewhat less volatility here, but green energy projects will continue to be added, which impacts grid stability.France’s regulatory framework encourages the use of storage through various programs. The Multiannual Energy Program (PPE) outlines the government’s objectives for renewable energy and storage integration.
France has also set targets for energy storage capacity by 2028, fostering investments in BESS. While the revenue potential has been positively impacted by recent policies, the overall market for energy storage remains less developed and mature if compared to other EU countries. It is developing however, particularly in large-scale BESS.
The Netherlands
The Netherlands have implemented a progressive regulatory regime supporting energy storage systems. The country fosters investments through subsidy programs for innovative storage technologies and adjustments to grid fees concerning storage facilities. Revenue generation in a market with high volatility and limited liquidity shows high promises, particularly as more renewable energy sources come online. The Netherlands boast a mature market, characterized by many projects in the commercial sector. The integration of battery storage into existing energy infrastructures is highly favorable.
In the Netherlands, we are in the process of realising the first medium-voltage storage system, which will be installed in addition to an existing PV system. With 80 GW of connection enquiries at grid operator TenneT, for large-scale storage systems, there are considerable delays in grid commitments and the market seems pretty much fully booked. We also expect further regulatory developments in connection with grid fees and currently focus our strategic approach of utilising existing grid connection capacity of PV systems for the expansion of our BESS capacity.
Austria
In Austria, we expect improved regulatory frameworks for storage facilities to arrive with the establishment of the new government. This should provide more certainty for the business case, including streamlined grid fees. Albeit this time lag, the trend for BESS should be similar to that in Germany and we are currently securing promising sites for these projects.In general, Austria has actively supported renewable energy through subsidies and feed-in tariffs in the past and today the role of BESS is increasingly recognized. So, Austria’s BESS market is developing, today however, the number of installations in stand-alone systems is relatively limited.
Romania
In Romania, the market is developing rapidly and is increasingly catching up, although the installed BESS capacities to date are manageable.What is interesting in this country market is that financing banks recommend the addition of a storage system for PV projects (to provide grid-supporting services and thus reduce project costs) and thus grant better conditions, although the profitability of the overall project may be lesser than a stand-alone PV system.An increase in stand-alone projects can be observed and I expect a considerable capacity increase in the next few years, also in view of the fact that the authorisation phases in Romania are shorter than in other EU countries.
Romania is gradually adopting policies that support renewable energy and storage systems. The government has implemented feed-in tariffs and other incentives to stimulate growth, although the regulatory framework remains less established compared to Western European countries. The revenue generation potential is limited compared to other countries discussed, but there are opportunities as market dynamics change. The recent launch of a EUR 150m modernization fund for BESS is further supporting that trend.
CCE
Structure of a stand-alone battery energy storage system (BESS).
Status Quo and Perspectives
The strategic value of a grid connection is very high in every country and presents the real bottleneck of the energy transition. This certainly applies to all countries.
European coordination would be desirable, particularly at grid operator level. The respective challenges and regulatory initiatives could be mirrored in an exchange of experiences. Defining why flexibility stands in the centre of making grids more resilient and how storage systems can contribute to grid neutrality and efficiency. Even if these are oftentimes local circumstances, there must be broader acceptance of why storage systems are so important for the expansion of our energy system.
Another general challenge is the transition of BESS stand-alone projects into so-called co- location between BESS and PV or wind. In addition to regulatory issues, this combination of technologies is highly complex in terms of structure and commercialization. Business cases need to be looked at individually and depending on the local parameters discussed in this article, a stand-alone project can oftentimes be more attractive than a co-located project.
In conclusion, the comparative analysis reveals varying levels of regulatory support, revenue potential, and market maturity. Germany and The Netherlands stand out as leading examples, Italy and France demonstrate growing interest and opportunity, while Austria and Romania are still developing their infrastructures and regulatory schemes. (Philipp Kraemer/hcn)
Europe’s power system is undergoing a massive transformation which is challenging the reliability of its infrastructure. The massive influx of renewables has increased our power supply variability, grid connection requests have skyrocketed in EU countries – Lithuania alone registered a 1425% increase in 2022 – and so has grid congestion due to the many distributed assets coming online. Meanwhile, cyber-attacks and extreme weather events have only grown in number.
Existing technologies can help face this complexity, optimise the existing grid, facilitate renewables integration and lower the overall investment bill according to Eurelectric’s report on Technologies supporting Grids for Speed.
“When reinforcing our grids, we must do it in a way that keeps system costs in check. Today we launch new tools to help policymakers control costs while increasing investments.”– said Eurelectric’s Secretary General Kristian Ruby. Real-life examples are:
On load tap changer transformers to keep voltage levels in check
Maintaining voltage levels in an adequate array is crucial to protect consumers equipment, but it’s not easy. Today voltage fluctuations are more common due to variable wind and solar power generation as well as the more dynamic loads caused by EV charging. On Load Tap Changers (OLTC) can dynamically regulate voltage without having to switch off transformers, unlike manual tap changers.
During periods of high power supply and low demand, distribution system operators (DSOs) can tap the transformer down to maximise renewables’ integration allowing the voltage level to rise while staying within limit. During peak demand, on the contrary, DSOs can tap the transformer position up to, for example, maximise electric vehicle (EV) penetration, allowing the voltage level to decrease thus staying within limit. This becomes practically infeasible if carried out manually, considering how frequently this would happen, making OLTC indispensable.
Their installation and operation, however, require skilled resources, advanced monitoring and control systems. In addition, OLTCs must be coordinated with other smart devices and the remaining grid equipment to ensure an optimal system performance.
Dynamic line rating to maximise grid capacity in real time weather
The conductivity of an overhead distribution power line or underground cable varies in real time based on temperature, solar radiation, wind speed and direction. Weather conditions can affect the power lines’ temperature and how far down they hang, a characteristic known as sag. The lines cannot sag too much, as they risk touching vegetation and cause a power cut.
Traditionally, grid operators have not been able to quantify external conditions to determine a line’s capacity at each period of time. DSOs conventionally take extra precautions when determining a maximum capacity, making sure that lines are stable even in the worst-case scenario. Such approach is known as conservative or static line rating. Dynamic line rating (DLR), instead, can measure the maximum current a conductor can safely carry in real time, thus optimising grid capacity at any time.
This is possible thanks to sensors and control systems. For instance, on a cool, cloudy and windy day, more power can flow through an overhead line than on a hot, sunny and calm day. DLR not only reduces the risk of power cuts, but also mitigates grid congestion and contributes to security of supply. Their implementation however can be hampered by high upfront costs and lack of standardised regulation for its operation.
High-temperature low sag conductors to increase power line capacity
High Temperature Low Sag (HTLS) conductors are conductors specifically engineered to handle higher operating temperatures with minimal sag compared to conventional ones. Traditional aluminium conductors tend to sag significantly under high temperatures limiting the amount of power that can be transmitted and posing safety risks. HTLS conductors, instead, are designed to operate efficiently at temperatures up to approximately 250°C, compared to the typical 90°C to 150°C range for conventional ones thanks to the use of advanced materials.
These technologies are tailored to specific situations. Their use will therefore depend on the issue, and topology at hand. To accelerate their deployment, Eurelectric identified four enablers:
1. Policy: regulation should adopt a forward-looking approach that incentivises investments in in a neutral way. Existing disincentives such as investment caps and outdated remuneration structures should be urgently addressed, especially if using the technology increases operating expenditure (OPEX). 2. Innovative investment strategies: new ways of working are necessary to support the implementation of these technologies. These include, for instance, anticipatory investments and higher flexibility. 3. Collaboration: partnerships among governments, regulators, system operators, market parties and customers are needed to drive innovation. 4. Skilled workforce: workers capable of implementing and managing these advanced technologies are essential.
Digitalisation as key
Last but not least: Digitalisation is the key pre-requisite for running these technologies. This includes digital systems to manage and control the grid, like Supervisory Control and Data Acquisition (SCADA) and Advanced Distribution Management Systems (ADMS). To provide these systems with accurate data, it’s crucial to collect information using smart meters, sensors, and other remote control and metering devices. Additionally, a reliable and secure communication network is essential to ensure smooth data flow between devices, substations and control centers.
New data: Eurelectric’s new report was complemented by a new interactive DSO map to show EU countries’ national infrastructure investment need, energy consumption and supply data. (hcn)
The residential sector is currently weakening. What effect does this have on your business in Poland?
Michal Marona: The Polish market offers many challenges. We have had strong growth in recent years. In 2022, 4.4 gigawatts of PV were installed in Poland, and in 2023 it was 4.8 gigawatts. In 2024 and 2025, economic experts expect an installed photovoltaic capacity of 3.5 gigawatts for Poland. What I mean by that is: the market in Poland has declined, but we are still talking about 3.5 gigawatts.
That is not a small market. As for your question about the residential market, I would like to look at it in a differentiated way. At SolarEdge, we are talking about micro installations. This is the category of PV systems up to 50 kilowatts peak. This includes the residential sector, but also commercial – and yes, we have seen a decline there since 2023. But that does not mean that there is no longer any business. In total 1.4 million PV systems with up to 50 kilowatts peak were installed in Poland.
Is the private market still leading?
Most recently, there were around 250,000 systems per year. Around 70% of these were residential systems, the rest were commercial systems. In 2024, there will probably be 120,000 PV systems up to 50 kilowatts peak. Of these, 70% will also be residential systems, 30% commercial systems. This means that over 80,000 residential systems will still be installed. The market may feel a lot smaller than it was in 2023. In fact, however, it has only halved. These are normal market fluctuations.
The PV market in Germany faltered between 2011 and 2013 and then stabilized and grew again. In the Polish PV market for residential systems, the dynamics depend heavily on government funding measures. These have just been relaunched in September. The funding of 90 million euros was awarded within a week. The amount was then increased to 300 million euros. It can therefore be assumed that the residential market will pick up. At the same time, it is expected that the area of small commercial PV systems will at least remain stable or even grow, because self-generated PV power is significantly cheaper than grid power.
The biggest challenge in the Polish energy market is certainly the transition from coal-fired power to renewable energies. Poland has come from an electricity supply that was over 80% based on coal. Converting this centrally organized supply with large coal-fired power plants to a decentralized, CO2-neutral supply is probably the biggest challenge. At the same time, however, it is also a great opportunity, especially for photovoltaics.
The problem is the distribution networks in the low-voltage range, which were built 40 years ago for a completely different type of supply. The network conversion and expansion will take a long time and will hinder the expansion of photovoltaics in Poland. We already have this problem today. The quick solution can be battery power storage, in all capacities, from domestic power to commercial power storage to grid-serving power storage.
What market strategy does SolarEdge pursue in Poland?
Our strengths are maximum flexibility for the user when planning and installing their photovoltaics, monitoring down to the module level, safety through temperature monitoring and maximum visibility of system performance. Due to the data density, we can use our system to implement systems that would not be approved with normal inverters, e.g. in the case of fire protection. What is not an issue in young PV markets, namely fire protection and corresponding demands from insurance companies, especially for commercial PV systems, is an issue in developed markets. This is not a particular danger posed by photovoltaic systems, it is simply due to statistics: more installed systems equal more opportunities for errors.
Another special feature is that our production and company management meet the strict ESG guidelines of the European Union. ESG stands for Environment, Social, Governance and is an assessment of how companies perform in individual areas. Today, ESG mainly affects large companies. In the future, however, ESG will become increasingly relevant for smaller and smaller companies. In the case of commercial PV-systems, this is a competitive advantage from for the company operating the PV-system.
Another advantage especially for our Polish customers is our company office in Katowice. This is where we have our sales and technical centre. All people are concentrated in one place and are in contact with each other. If an employee has a special case, many experts can take it up and work on solutions.
What developments do you expect in the Polish PV economy in the next 12 months?
As mentioned earlier, the Polish PV market offers excellent long-term prospects simply by switching from coal-fired power to CO2-neutral power. An important point that perhaps applies more to Poland and other East European countries than to western EU countries is cybersecurity. As a former member state of the Eastern Bloc, we have more connections and similarities with the East than, for example, Germany or France from a purely technical point of view. After the outbreak of the Ukraine war, the issue of hacker attacks on energy infrastructure has become a major issue in Poland.
If we think of the conversion from a strongly analogue and centralized energy supply system to a smart, AI-controlled decentralized supply, I think the relevance of cybersecurity becomes clear. These concerns increase the further east you go. They are very high in the Baltic States. How important the issue is in Poland can be seen from the position on cybersecurity. This responsibility lies with none other than the Deputy Prime Minister. The second man in the state also holds the position of Minister of Digital Affairs. Here, we offer maximum security with our system. In our view, cybersecurity in decentralized renewable energy supply will be one of the greatest challenges of the future, to which we will be very committed and for which we are well-prepared.
SolarEdge is considered the global market leader in PV-optimization in the residential sector. This sector is currently weakening. What effect does this have on your business in Poland?
Michal Marona: The Polish market offers many challenges. We have had strong growth in recent years. In 2022, 4.4 gigawatts of PV were installed in Poland, and in 2023 it was 4.8 gigawatts. In 2024 and 2025, economic experts expect an installed photovoltaic capacity of 3.5 gigawatts for Poland. What I mean by that is: the market in Poland has declined, but we are still talking about 3.5 gigawatts.
That is not a small market. As for your question about the residential market, I would like to look at it in a differentiated way. At SolarEdge, we are talking about micro installations. This is the category of PV systems up to 50 kilowatts peak. This includes the residential sector, but also commercial – and yes, we have seen a decline there since 2023. But that does not mean that there is no longer any business. In total 1.4 million PV systems with up to 50 kilowatts peak were installed in Poland.
Most recently, there were around 250,000 systems per year. Around 70% of these were residential systems, the rest were commercial systems. In 2024, there will probably be 120,000 PV systems up to 50 kilowatts peak. Of these, 70% will also be residential systems, 30% commercial systems. This means that over 80,000 residential systems will still be installed. The market may feel a lot smaller than it was in 2023. In fact, however, it has only halved. These are normal market fluctuations.
The PV market in Germany faltered between 2011 and 2013 and then stabilized and grew again. In the Polish PV market for residential systems, the dynamics depend heavily on government funding measures. These have just been relaunched in September. The funding of 90 million euros was awarded within a week. The amount was then increased to 300 million euros. It can therefore be assumed that the residential market will pick up. At the same time, it is expected that the area of small commercial PV systems will at least remain stable or even grow, because self-generated PV power is significantly cheaper than grid power.
The biggest challenge in the Polish energy market is certainly the transition from coal-fired power to renewable energies. Poland has come from an electricity supply that was over 80% based on coal. Converting this centrally organized supply with large coal-fired power plants to a decentralized, CO2-neutral supply is probably the biggest challenge. At the same time, however, it is also a great opportunity, especially for photovoltaics.
The problem is the distribution networks in the low-voltage range, which were built 40 years ago for a completely different type of supply. The network conversion and expansion will take a long time and will hinder the expansion of photovoltaics in Poland. We already have this problem today. The quick solution can be battery power storage, in all capacities, from domestic power to commercial power storage to grid-serving power storage.
What market strategy does SolarEdge pursue in Poland?
Our strengths are maximum flexibility for the user when planning and installing their photovoltaics, monitoring down to the module level, safety through temperature monitoring and maximum visibility of system performance. Due to the data density, we can use our system to implement systems that would not be approved with normal inverters, e.g. in the case of fire protection. What is not an issue in young PV markets, namely fire protection and corresponding demands from insurance companies, especially for commercial PV systems, is an issue in developed markets. This is not a particular danger posed by photovoltaic systems, it is simply due to statistics: more installed systems equal more opportunities for errors.
Another special feature is that our production and company management meet the strict ESG guidelines of the European Union. ESG stands for Environment, Social, Governance and is an assessment of how companies perform in individual areas. Today, ESG mainly affects large companies. In the future, however, ESG will become increasingly relevant for smaller and smaller companies. In the case of commercial PV-systems, this is a competitive advantage from for the company operating the PV-system.
Another advantage especially for our Polish customers is our company office in Katowice. This is where we have our sales and technical centre. All people are concentrated in one place and are in contact with each other. If an employee has a special case, many experts can take it up and work on solutions.
What developments do you expect in the Polish PV economy in the next 12 months?
As mentioned earlier, the Polish PV market offers excellent long-term prospects simply by switching from coal-fired power to CO2-neutral power. An important point that perhaps applies more to Poland and other East European countries than to western EU countries is cybersecurity. As a former member state of the Eastern Bloc, we have more connections and similarities with the East than, for example, Germany or France from a purely technical point of view. After the outbreak of the Ukraine war, the issue of hacker attacks on energy infrastructure has become a major issue in Poland.
If we think of the conversion from a strongly analogue and centralized energy supply system to a smart, AI-controlled decentralized supply, I think the relevance of cybersecurity becomes clear. These concerns increase the further east you go. They are very high in the Baltic States. How important the issue is in Poland can be seen from the position on cybersecurity. This responsibility lies with none other than the Deputy Prime Minister. The second man in the state also holds the position of Minister of Digital Affairs. Here, we offer maximum security with our system. In our view, cybersecurity in decentralized renewable energy supply will be one of the greatest challenges of the future, to which we will be very committed and for which we are well-prepared.
