Are industrial energy storage systems worthwhile?

Przemysłowe magazyny energii

Are industrial energy storage systems worthwhile?

Energy storage systems are gaining popularity in Poland. Installing an energy storage system is a decision that is increasingly being made by homeowners, but not only. Investment in large-scale energy storage for industry and businesses is becoming more and more attractive due to attractive subsidies, the possibility of saving, and even earning on energy surpluses. Let’s analyze whether industrial energy storage is worthwhile and what benefits it brings to companies.

Chart of interest in energy storage vs. photovoltaic panels

Chart of interest in energy storage vs. photovoltaic panels

What exactly are industrial energy storage systems?

Industrial energy storage systems are an advanced system that combines the functions of collecting and storing electricity for later use. This is of great importance for companies and enterprises, which can thus optimize the costs of purchasing electricity.

The task of industrial energy storage is to accumulate surplus kilowatt hours of energy, so that companies can avoid interruptions in energy supplies, the so-called blackouts. These types of interruptions can last from several to several hours and bring huge losses for manufacturing companies, but not only.

grafika z bateriami pod dachem

Benefits of investing in industrial energy storage systems

What can you gain by investing in industrial energy storage?

1. Optimization of electricity costs and increase in self-consumption

The increase in demand for electricity and rising prices mean that energy storage for industry has become profitable. The accumulation of energy surpluses from renewable sources (photovoltaic farms, wind and water power plants) significantly reduces electricity bills. In this model, companies use self-consumption of generated electricity and do not have to buy electricity from the grid.

2. Greater independence from electricity prices on the market

Electricity prices for businesses are rising year on year. The forecast for 2025 says that entrepreneurs in Poland can expect higher electricity bills by up to 25%. [2]

Constant changes in rates and unfavorable tariffs mean that entrepreneurs have to look for alternatives for the coming years.

Thanks to industrial energy storage, companies can minimize the impact of energy price fluctuations and become independent from grid energy supplies. An additional photovoltaic installation or other RES sources significantly reduce the number of kilowatt hours taken from the grid to a minimum. This will effectively help minimize energy price increases for your company.

In addition, energy storage will allow better use of the introduction of dynamic tariffs in the future, and currently allows you to shift energy consumption to periods during the day when energy is cheaper.

Hourly electricity prices on European power markets

Hourly electricity prices on European power markets: To

3. Preventing power outages (blackouts)

Poland is a country powered mainly by coal. In the first half of 2024, coal production fell to 3.49 tons, the second worst result in history. [3] The uncertain situation and difficult access to fossil fuels are the most important reasons for power outages.

The lack of electricity makes it impossible to operate machines, leads to production downtime, and disruptions in supply chains. This situation can be particularly dangerous for companies operating in the health sector, where human life is at stake.

Economic losses related to power outages are estimated at millions of zlotys. The blackout in Szczecin in 2008 caused damage in the amount of PLN 50 million. [4] Experts, not very optimistically, say that after 2030, we can expect power outages in hundreds of hours. [5]

The answer to this problem is industrial energy storage, which prevents interruptions in energy supplies, thus eliminating the risk of many hours of downtime.

Słup energetyczny

4. The ability to earn on stored energy

The most popular models for earning on energy stored in industrial energy storage are:

  • Price arbitrage
  • Capacity market

Price arbitrage consists of buying energy from the grid during periods of low prices and selling it when prices are highest. Most often, energy prices peak between 5 PM and 6 PM. In the morning and afternoon hours between 10:00 AM and 3:00 PM, prices are the most affordable. This process can take place in one or several cycles per day.

The Demand Side Response (DSR) capacity market program allows you to receive remuneration for the readiness to reduce or supply power at the request of the transmission system operator PSE S.A with 8 hours’ notice. Remuneration is granted for the readiness itself, without contractual penalties for failure to fulfill the call.

Challenges and factors affecting the profitability of investing in industrial energy storage systems

 

Ennovation Technology Industrial Energy Storage

Ennovation Technology Industrial Energy Storage

1.Trading strategies and attractiveness of energy storage | Technology and efficiency

Maintaining the attractiveness of industrial energy storage is key in today’s rapidly changing market. This requires quick response and investment in modern technologies.

The use of algorithms and artificial intelligence (AI) allows for faster response to market changes.

At Ennovation Technology, our energy storage facilities are equipped with the EMS system. The EMS system is equipped with predictive models and algorithms that monitor battery operation and manage energy flows, thus saving and generating revenue.

2.Investment costs

The construction of large-scale energy storage facilities involves high initial costs, which can amount to millions of zlotys.

For example, the planned project in Trzebinia has an estimated value of around PLN 130 million. [6]

Admittedly, the National Fund for Environmental Protection and Water Management (NFOŚiGW) has launched a co-financing program for entrepreneurs, where the total budget is PLN 4 billion, of which PLN 3.6 billion is in the form of a non-returnable grant.

The funding covers:

  • Construction of energy storage facilities with a minimum capacity of 2 MW and a capacity of 4 MWh.
  • Construction of a grid connection and accompanying infrastructure.
  • Configuration and adaptation of warehouses to work in the system.

Financial support will be provided in the form of a grant:

  • up to 45% of costs for large enterprises,
  • up to 55% for medium-sized enterprises,
  • up to 65% for micro and small enterprises.

3. Applying optimal sources of income

There are several methods of obtaining income from industrial energy storage facilities. From the price spread, to the DSR capacity market and reducing distribution fees. This means that investors should carefully analyze each possibility and choose the most optimal path for themselves.

It is important to optimally diversify the methods of earning on the warehouse in order to achieve the best financial result.

To this end, at Ennovation Technology, we conduct an analysis of the profitability of energy storage, based on the needs and assumptions of our clients.

Summary – industrial energy storage, is it worth it?

The market for industrial energy storage in Poland is growing. As a result of the main capacity market auction for 2028, the construction of 33 units was contracted, which will use electrochemical technology, which will bring additional power at the level of 1,734 MW. [1]

According to the report of the International Energy Agency (IEA), 80 million kilometers of new transmission networks should be built in the world by 2040, i.e. double their current length. “EY data shows that in Europe, investments in distribution networks must double from current annual levels and reach EUR 67 billion per year in 2025-2050. Poland is facing a similar challenge.” [7]

From the above analysis, it can be concluded that the energy transformation will only accelerate. It only depends on us whether we will be part of it or not.

Sources

[1]: <a href=”https://enerad.pl/raport-ure-na-temat-magazynow-energii-osd-w-2024-roku/” rel=””nofollow””>Enerad</a>
[2]: <a href=”https://mycompanypolska.pl/artykul/fatalna-wiadomosc-dla-przedsiebiorcow-ceny-pradu-wieksze-dla-nich-o-25-proc-w-2025-roku/16417″ rel=””nofollow””>My company Polska</a>
[3]: <a href=”https://biznesalert.pl/energetyka-energia-elektryczna-wegiel-srodowisko-polska-instrat/” rel=””nofollow””>Biznesalert </a>
[4]: <a href=”https://cuk.pl/porady/blackout-w-polsce#skutki-blackoutu” rel=””nofollow””>CUK</a>
[5]: <a href=”https://wiadomosci.radiozet.pl/Biznes/blackout-w-polsce-padl-termin-nawet-setki-godzin-bez-pradu-wstrzas-dla-polakow” rel=””nofollow””>Radio Zet</a>
[6]: <a href=”https://e-magazyny.pl/aktualnosci/dri-coraz-blizej-realizacji-projektu-magazynowania-energii-w-trzebini/” rel=””nofollow””>E-magazyny</a>
[7]: <a href=”https://www.ey.com/pl_pl/insights/energy-resources/recai-63-cztery-przeslanki-wplywajace-na-inwestycje-w-magazynowanie-energii-esg-fy25-gc-fy25#chapter1″ rel=””nofollow””>EY</a>