Photon Energy, through its subsidiary Lerta JRM Sp. z o.o., has announced contracts for 316 MW, including 315 MW of demand response capacity (DSR), for 2025. These contracts are the result of additional capacity auctions for 2025 organized by PSE S.A., the Polish transmission system operator. By adapting its strategy, Photon Energy chose to reduce the initial planned volume of 490 MW to maximize its gross profitability, resulting in the securing of 316 MW, of which 315 MW dedicated to demand response (DSR).
Auction results and implications
These 316 MW, including 1,088 MW of renewable generation, added to the 10 MW already contracted for 2025, will guarantee Photon Energy revenues of PLN 56.1 million (EUR 13 million) on the capacity market. The auctions reflect moderate demand for capacity over the coming quarters, with a volume-weighted average price of PLN 172.168 (EUR 39.892) per MW/year.
Secondary market optimization
Following an in-depth analysis, Photon Energy decided to optimize its volumes through the secondary market, ensuring higher revenues for lower volumes. This strategic approach has enabled us to secure additional revenues of PLN 18 million (EUR 4.2 million) compared with initial forecasts, while maintaining the potential for additional revenues on the capacity market.
Potential for ancillary services
The successful auction precedes the opening of the new ancillary services market in Poland, offering Photon Energy new revenue opportunities through flexibility in addition to the capacity market. This new market will enable the use of independent participants’ assets to provide balance sheet capacity and energy for short-term needs.
Photon Energy continues to grow in the Polish market, strengthened by the acquisition of Lerta in November 2022. This acquisition not only added a new financial dimension to Photon Energy, but also expanded its market access and technologies for the management of distributed energy resources, including controllable generation units and demand response sites.
