Hekla Energy, operating in the Polish energy market, is initiating the electrification of energy storage projects, having entered into agreements for market access. The company is also preparing an energy storage facility that will operate in conjunction with photovoltaic systems.
Hekla Energy is in the process of electrifying its first portfolio of stand-alone energy storage systems (details regarding these projects remain confidential). The company is simultaneously collaborating with a client to launch a hybrid installation that combines a 30 MW photovoltaic farm with an 8 MW energy storage system (the company does not disclose the storage capacity).
In both cases, the business model is based on energy market arbitrage, which involves storing energy when market prices are low and feeding it back into the grid during price surges. According to Gracjan Grela, CEO of Hekla Energy, who spoke with Gramwzielone.pl, arbitrage is currently the most significant and easiest source of revenue for energy storage systems in the context of the Polish energy market.
“We are talking about real revenues and services that a storage owner can provide today. From the perspective of financing such units, securing a stable source of revenue over a longer time horizon is undoubtedly crucial, as it can clearly define the minimum return on investment or the generated cash flow,” comments Gracjan Grela.
Hekla to Offer Tolling Agreements
Simultaneously, Hekla Energy plans to expand its energy storage offerings over time to include Tolling Agreements and to provide balancing power services in collaboration with storage units and renewable energy sources (RES).
In an interview with Gramwzielone.pl, the CEO of Hekla Energy indicated that a Tolling Agreement would provide the energy storage owner with stable revenues in exchange for Hekla assuming all benefits and risks associated with the operation of the storage. By estimating projected revenue amounts and the risk of deviations during the contract periods, the company aims to offer a fixed monthly fee for the opportunity to utilize the storage in line with its strategy.
“As a trading company specializing in green energy trading, we want to support energy storage owners in managing market risks and maximizing profits, thereby contributing to the growth of such investments. These are essential for building a system based on low-emission, weather-dependent sources,” Grela adds.
