Photon Energy secures 315MW demand response capacity in successful bid at Polish auction

– Photon Energy’s subsidiary Lerta JRM succeeded in the 2025 Polish capacity auction with 315MW of demand side response capacity and 1.088MW of renewable generation.
– The company’s total capacity obligation for 2025 is 316.088MW, ensuring EUR 13 million in capacity market revenues.
– Photon Energy’s deliberate strategy to decrease contracted volumes during the auctions aims to maximize gross profit from the Virtual Power Plant business and pursue additional transactions in the secondary market.

Photon Energy’s subsidiary Lerta JRM has successfully secured 315MW of demand side response capacity and 1.088MW of renewable generation in the 2025 Polish capacity auction. This, combined with previously contracted capacity, will bring the company’s total capacity obligation to 316.088MW, guaranteeing EUR 13 million in capacity market revenues for 2025. The contracted volume and revenues may appear lower than past declarations, but Photon Energy states that this strategy aims to maximize gross profit from the Virtual Power Plant business.

Despite appearing to have a lower visible success immediately after the auctions, Photon Energy remains confident in their decision to decrease volumes contracted during the auctions. The company plans to fill the gap in the secondary market later in the year or during deliveries in 2025, after an analysis of auction parameters and potential price paths. The company opted to secure higher revenues from lower volumes due to recent successes in the secondary market optimizations.

The upcoming opening of a new market in Poland for ancillary services will allow Photon Energy to monetize assets managed for the capacity market by providing balancing capacity and energy during short-term needs. This new market, set to open in June 2024, will enable the company to further expand its virtual power plant business, which includes participation in the Polish Capacity market and ancillary services.

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