LG Energy Solution's Strategic Move in Europe: A Game Changer for Energy Storage

In a significant development for the European energy sector, LG Energy Solution has secured a landmark agreement with Poland's largest energy company, PGE, to supply 981MWh of grid-scale Energy Storage Systems (ESS) batteries. This deal, announced on March 24, 2025, marks a pivotal moment in the region's transition towards renewable energy and enhanced grid stability. The project, set to commence commercial operations in 2027, will feature the first grid-scale ESS batteries manufactured at LG Energy Solution's Poland facility, underscoring the company's commitment to local production and technological innovation.



The collaboration between LG Energy Solution and PGE is not just about supplying batteries; it's about establishing a comprehensive energy storage solution. LG Energy Solution will provide a turnkey solution encompassing containerized battery systems, Engineering, Procurement, and Construction (EPC) services with partners in Europe. This holistic approach ensures that the project will be executed efficiently and effectively, meeting the high standards set by both companies.

The strategic advantages of this partnership are manifold. For LG Energy Solution, this project is one of the largest ESS initiatives in Europe, positioning the company as a key player in the region's energy storage market. By leveraging its "Made in Europe" manufacturing capabilities, LG Energy Solution meets the demands of European customers and governments prioritizing locally produced solutions. This strategy not only enhances market presence but also unlocks new business opportunities and highlights the quality and competitiveness of locally produced products.

For PGE, the project marks a significant step in advancing Poland's clean energy transition. The battery energy storage facility in Żarnowiec will help balance the output of onshore and offshore wind farms, enhancing the stability of the Polish electricity grid. This is crucial as Poland seeks to reduce its reliance on coal and transition to a more sustainable energy mix.

The economic and environmental benefits of this project are substantial. Enhanced grid stability, facilitated renewable integration, and reduced carbon emissions are just a few of the advantages. The project is also expected to create jobs and stimulate economic growth in the region, contributing to the broader economic benefits of the energy transition. Additionally, the partnership brings advanced battery technology to Poland, potentially spurring further innovation and development in the country's energy sector.

The project aligns with the broader European Union energy and climate targets, which include increasing the share of renewables in the energy mix and improving energy efficiency. This alignment can enhance Poland's standing within the EU and attract further investment. As Dariusz Marzec, President of the Management Board of PGE Polska Grupa Energetyczna, stated, "Our partnership with LG Energy Solution marks a major milestone in our commitment to advancing Poland's clean energy transition, and we look forward to strengthening our collaboration to foster sustainable growth in the region."

In conclusion, LG Energy Solution's agreement with PGE to supply 981MWh of grid-scale ESS batteries is a strategic move that positions the company as a leader in the European energy storage market. The project not only supports Poland's energy transition but also aligns with the broader EU energy and climate targets. The economic and environmental benefits of this project are substantial, and it is expected to influence future investments in renewable energy infrastructure. As the energy sector continues to evolve, partnerships like this one will be crucial in driving the transition towards a more sustainable future.