Pan-European independent power producer R.Power has secured approximately PLN270 million (€64 million) in project financing for the construction of its 150MW/300MWh Jedwabno battery energy storage system (BESS) in Poland.
The company said the transaction is the largest project finance deal completed for a utility-scale BESS project in the Polish market and will support the construction of one of the country’s largest battery storage facilities.
The financing has been arranged as a club deal between Siemens Financial Services, through Siemens Bank, and Erste Group Bank AG. R.Power said the agreement demonstrates growing confidence among institutional lenders in large-scale energy storage projects across Central and Eastern Europe.
The Jedwabno project’s financing is underpinned by a 17-year contract secured through Poland’s capacity market auction and a long-term optimisation agreement with Axpo, providing long-term revenue visibility for lenders.
Construction of the project is already underway and completion is scheduled for the end of 2026. Once operational, the facility is expected to be among the largest utility-scale battery storage assets in Poland, providing grid balancing and flexibility services as the country continues its transition away from coal-fired generation.
Michał Swół, chief investment officer at R.Power, said: “Jedwabno is a crucial step – for R.Power and for the Polish energy storage market. Securing project finance at this scale, underpinned by long term revenue contracts, shows that large-scale BESS is now fully bankable in CEE.
“We are grateful to the teams at Siemens Financial Services, with their experience in BESS financing, and Erste Group, a long-term financing partner for our PV portfolios, for the confidence they have shown in this project. It is testament to the trust our lending partners have placed not only in R.Power, but in the viability of large-scale energy storage as a bankable asset class in this market.”
Jenny Blackford, chief executive officer of Siemens Bank, said: “Jedwabno BESS will make a meaningful contribution to Poland’s grid resilience as the country accelerates its renewable energy transition and we commend R.Power for their desire to develop, one of the first and, to date, the largest project finance solution in the utility scale BESS sector. We are particularly proud to support R.Power in building this essential infrastructure backed by our deep expertise in energy storage financing and our existing presence in the Polish renewables sector.”
Juan de Porras Aguirre, executive director corporates at Erste Group, said: “This landmark transaction reflects Erste Group’s strong commitment to accelerating the energy transition at a time when energy security and independence are more important than ever. BESS projects like Jedwabno are a crucial piece of this puzzle because they enable flexibility and resilience in the power system.
Delivering one of the first large-scale non-recourse financings for a standalone battery storage project in Poland demonstrates both our structuring expertise and our confidence in the country’s rapidly evolving energy landscape. It also underlines the strategic importance of Poland following Erste’s recent expansion into the country, as we continue to deploy capital into Poland’s future-oriented infrastructure”.
R.Power said the Jedwabno project forms part of a pipeline of more than 10GW of grid-secured battery storage, hybrid and renewable energy projects across Poland, Romania, Italy, Germany, Portugal and Spain.
Photo: lake on the fields of Żura, Jedwabno, Wamińsko-Mazurskie Province, Poland
Credit: Shutterstock
