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ISSN 2753-7757 (Online)

Central Europe increases BESS deployment for grid stability

28/4/2026

News

Aerial overview of solar farm showing row upon row of solar panels Photo: Renalfa IPP
Renalfa solar hybrid power plant in Hungary

Photo: Renalfa IPP

Recent battery storage investments in Germany, Hungary and Sweden involve the deployment of flexible energy assets across the continent.

Germany: virtual battery model
German energy company RWE has partnered with Polarium, an energy storage developer, to create a ‘virtual battery’ by aggregating individual behind-the-meter sites across the country. Under a multi-asset tolling agreement, RWE Supply & Trading will manage at least 50 MW of power and 135 MWh of capacity.

 

This energy is sourced from over 1,600 behind-the-meter battery systems. Polarium’s cloud-based platform pools these decentralised units into a single resource, allowing RWE to manage them for grid balancing. The venture has set long-term targets to expand the portfolio to 300 MW and 810 MWh, integrating more than 10,000 individual battery systems.

 

Ulf Kerstin, Chief Commercial Officer at RWE Supply & Trading, stated that batteries are becoming essential for a stable energy supply. He noted that Polarium’s virtual battery is intended to complement RWE’s existing generation and storage portfolio.

 

Leif Ottoson, CEO of Polarium, shared that systems originally intended for local infrastructure can now play a role in the wider energy system. He said the aim is to maintain local availability while marketing excess flexibility.

 

Hungary: utility-scale hybrid assets
The European Bank for Reconstruction and Development (EBRD) has provided a €70mn loan as part of a €210mn financing package for a solar and battery project in Hungary. Developed by Renalfa IPP, the project combines a 450 MW solar photovoltaic parc with a co-located 250 MW/1 GWh battery storage system.

 

Located in north-eastern Hungary, the facility is expected to deliver approximately 448 GWh of renewable electricity annually. The project plans to sell electricity directly into the Hungarian market without a support scheme or a corporate power purchase agreement (PPA).

 

Ivo Prokopiev, CEO of Renalfa IPP, stated that the hybrid asset would allow the company to offer ‘green baseload’ products. This is said to be possible by using the battery to store excess solar energy for later distribution.

 

The EBRD notes that this investment marks its first energy project in Hungary since 2010. Anca Ionescu, the bank’s Regional Head, stated that the deal shows a commitment to Hungary’s goal of 30% renewable energy consumption by 2030.

 

Grzegorz Zielinski, EBRD’s Director of Energy for Europe, stated that the project sets an example for the region. He noted that combining solar and storage at this scale is intended to demonstrate how regional energy security can be enhanced.

 

Sweden: large-scale grid integration
In the Nordic region, Centrica Energy has signed an optimisation agreement for the Ånge Storage Solutions project in Sweden. The BESS facility has a capacity of 70 MW and 160 MWh and is a joint venture between Delta Capacity and Wood & Co.

 

Cassim Mangerah, Managing Director of Centrica Energy, stated that assets like the Ånge BESS are considered vital for a decarbonised power market. Centrica Energy will serve as the project’s optimiser, providing 24/7 trading services via forecasting tools and algorithms across wholesale markets and ancillary services. The battery is designed to provide rapid-response capabilities to balance fluctuations in production and consumption.