Amsterdam-based solar power company Photon Energy NV (WSE:PEN) said on Tuesday that it has been awarded 375 MW of capacity in Poland’s demand-side response (DSR) auction for dispatch in 2024, securing additional revenues for its Polish virtual power plant (VPP) business Lerta.
Photon’s wholly-owned unit Lerta previously secured 14 MW of DSR capacity in the earlier auction for delivery in 2024 held by Poland’s transmission system operator (TSO) Polskie Sieci Elektroenergetyczne SA (PSE).
The company said it had managed to secure an average price of PLN 303,868 (USD 69,487/EUR 64,701) per MW/year for the capacity contracted in both auctions -- 389 MW. This implies total contracted revenues of PLN 116.8 million for 2024, Photon calculated.
Photon’s success in Polish DSR auctions for delivery in 2022, 2023 and now 2024, points to a total DSR capacity growth of 190% and revenues growth of 224% between 2023 and 2024. The company's target for the Polish DSR market is to reach 1,000 MW of capacity in 2030. It said that it plans to achieve this by adding around 100 MW of contracted capacity per year via participation in upcoming annual additional auctions and the main auctions for 2028, 2029 and 2030.
According to Photon Energy: “The PSE auctions are for the readiness to provide DSR services on-demand in case of grid stress events, which to-date have occurred rarely”.
Meanwhile, the company's DSR capacity portfolio will remain available for other revenue generating purposes, such as optimising its electricity-trading balancing circle, lowering the energy costs of its electricity customers and providing ancillary services. Poland’s ancillary services market is scheduled to start operation on January 1, 2024.
(PLN 1.0 = USD 0.229/EUR 0.213)
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