Pan-European independent power producer (IPP), R.Power, has signed a project finance facility of approximately PLN 270 million (€64 million) for the construction of its 150 MW/300 MWh Jedwabno battery energy storage system (BESS) in Poland. This is the largest project finance transaction to be completed for a utility scale BESS asset in the Polish market and ensures the progression of one of R.Power’s flagship projects.

The facility has been structured as a club deal between Siemens Financial Services through Siemens Bank and Erste Group Bank AG and represents an important milestone for the development of the Polish energy storage sector. The transaction demonstrates that large scale BESS projects in Central and Eastern Europe can attract the same level of institutional lending support that has long characterised solar and wind financing.

Central to the project’s bankability are a 17-year contract secured through Poland’s capacity market auction and a long-term optimisation agreement with Axpo. Combined, these contracts provide the long-term cashflow visibility required to support project finance structures of this scale.

Construction at the Jedwabno site is already well underway, with completion targeted for the end of 2026. Jedwabno will become one of Poland’s largest operational utility scale BESS assets – providing critical grid stabilisation capacity as the country accelerates its transition away from coal.

Michal Swól, 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, CEO of Siemens Bank, added: “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, commented: “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.”