Photon Energy Group Secures Significant Capacity Market Contracts in Poland

Photon Energy Group has successfully acquired Polish capacity market contracts for a total of 316 MW, promising EUR 13 million in revenue for the year 2025. This includes 315 MW of Demand Side Response (DSR) capacity and 1.088 MW from renewable sources, augmenting the earlier 10 MW contracted for the same period. The company's strategic decision to retract from auctioning off a portion of the initially intended 490 MW volume led to a focused approach on maximizing gross profitability through subsequent contract pursuits in the secondary market.

The auction results highlight Photon Energy's adept market navigation in anticipation of potential revenue streams from the new ancillary services market, expected to launch in June 2024 in Poland. This new market offers Photon Energy the opportunity to monetize its managed assets further by providing balancing capacity and energy, illustrating a proactive stance towards leveraging evolving market mechanisms.

The company's strategy, underscored by its reduction in auction volume, is aimed at preserving profitability and potential for additional revenues. Despite this strategic volume reduction, Photon Energy is committed to growth, eyeing an aim of reaching 430 MW in 2025, building upon the 389 MW contracted in 2024.

Photon Energy's participation in the capacity market and ancillary services is facilitated through its New Energy Division, significantly bolstered by the acquisition of Lerta in 2022. This acquisition not only expanded Photon Energy's financial and technological capabilities but also positioned it effectively to capitalize on emerging opportunities in flexibility markets.