EQS-News

Photon Energy Group Secures Polish Capacity Market Contracts for 316 MW, Locking in Revenues of EUR 13 Million for 2025 - Seite 2

Though the contracted volume and revenues may seem lower compared to the Company’s previous declarations, it is a deliberate strategy to maximise gross profit from the Virtual Power Plant business. After a detailed analysis of the auction parameters and potential price paths, the Photon Energy VPP team concluded that the original volume would depress prices to unsatisfactory levels of ca. PLN 85,000 (EUR 19,696) per MW/year. Given recent successes with secondary market optimisations, including purchasing additional capacity obligations, the Company chose to secure higher revenues from lower volumes and subsequently pursue additional transactions in the secondary market. The auction results affirm the effectiveness of this strategy, enabling the Group to secure revenues higher by PLN 18 million (EUR 4.2 million) compared to initial assumptions of 490 MW, while preserving significant potential for additional Capacity Market revenues from the secondary market. The Group intends to maintain its capacity growth, building on the very satisfying volume of 389 MW contracted for 2024, and is currently aiming to reach 430 MW in 2025.

 

More Potential in New Mechanisms

The auction results are announced less than three months before the new related market opens in Poland, with ancillary services provided by independent market participants. Scheduled to open on 14 June 2024, this market will enable the Company to monetise a significant share of assets currently managed for the Capacity Market by providing balancing capacity and energy during short-term needs. Unlike the Capacity Market, which is a long-term investment incentive and a relatively slow tool for grid support, ancillary services, particularly frequency restoration reserves, offer high availability and close-to-real-time grid balancing tools. This will utilise the assets of independent participants, including aggregators like Photon Energy, and enable the Company to generate significant additional revenues on top of Capacity Market revenues from aggregated energy resources on both sides – generators (CHPs, PVPs, biogas units, etc.) and consumption (behind-the-meter energy sources, batteries, reserve diesel generators, pumps, HVAC, etc.). These innovative tools are being deployed across Europe following the new Electricity Market Design directive, and the Group is preparing to launch in three European markets in 2024: Poland, Hungary and the Czech Republic.