Polska Grupa Energetyczna (PGE) and the National Fund for Environmental Protection and Water Management (NFOŚiGW) have signed an investment agreement to finance the construction of a pumped storage power plant (ESP) in Młoty with a planned capacity of approximately 1,050 MW. As part of the agreement, NFOŚiGW will take a 49 % stake in the special purpose vehicle PGE Inwest 12, responsible for the construction of ESP Młoty. PGE will retain a majority stake of 51%. The conclusion of the agreement is aimed at securing financing for the construction of the pumped storage power plant in Młoty.

The ESP Młoty project is one of the elements of the implementation of the energy transformation in Poland. It will play a key role in maintaining the operational stability of the National Power System in southern Poland. The planned ESP Młoty energy storage facility, owing to its parameters and operation capabilities, will enable the development of renewable energy sources.

Within the framework of the ESP Młoty investment, it is planned to build two water reservoirs, which will additionally perform the function of flood prevention and maintenance of water retention in the region. According to the schedule, the investment is planned to be completed in 2030.

PGE emphasises that the involvement of NFOŚiGW is the next stage in the project. The signing of the investment agreement at the current stage of work is crucial for the ultimate success of the construction of the pumped storage power plant in Młoty. The special purpose company, PGE Inwest 12, will obtain funds from its owners to finance the planned works, which will soon focus on launching the proceedings for the general contractor of the investment.

“The construction of the Młoty green energy storage facility, the largest investment of this type in Poland, is an element of the energy transformation and the implementation of the PGE Group’s strategy to ensure national energy security”, said Wojciech Dąbrowski, President of the Management Board of PGE. He added that the selection of state-of-the-art technologies and technical and construction solutions will allow this green energy storage facility to operate continuously for a minimum of forty years.

Adrian Andrzejewski