Does an energy storage system increase the profitability of a PV or wind farm?

Why is energy storage profitable?

Both photovoltaics and wind energy are characterized by high variability in production. There are periods when energy is produced in excess but cannot be used or sold at a profitable price. In such cases, an energy storage system allows excess energy to be stored and used when demand rises and energy market prices are higher.

The lack of the ability to store energy often leads to selling it at minimum prices or – in extreme cases – to the complete shutdown of the installation. For the investor, this means real financial losses that can be limited by using storage as a buffer between production and consumption or sale.

Types of energy storage systems used in RES

The most commonly used solution is battery storage, particularly lithium-ion batteries and LFP cells. They are characterized by relatively high efficiency, high energy density, and the ability to operate on a daily cycle. They are scalable and integrate well with PV systems and wind turbines.

Economic benefits of implementing energy storage

From an investor’s perspective, using an energy storage system can directly improve the financial performance of a PV or wind farm.

The first and most obvious mechanism is increasing self-consumption – i.e., using electricity at the point of generation. For farms operating under the direct sale model, this means the ability to supply energy to the end customer even when it is not being produced at the moment, thus improving delivery continuity.

Another factor is the increasing occurrence of negative energy prices on the spot market. A storage system prevents selling energy at unprofitable rates by storing it until prices return to market levels. Equally important is the ability for the installation to temporarily operate in off-grid mode – for example, in the event of a grid failure – or as part of a hybrid configuration with other sources.

Optimizing a farm through SCADA and storage integration

Managing a large RES installation integrated with an energy storage system requires a precise control system. This function is performed by SCADA (Supervisory Control and Data Acquisition) systems, which enable monitoring of technical parameters, control of device operation, and quick reaction to changes in the market or technical environment.

Modern farms are also equipped with algorithms that automate decisions related to charging and discharging storage systems, integrating data on weather forecasts, consumer demand, and energy prices. The implementation of AI solutions supports real-time decision-making.

Nomad NX system – a modern approach to farm management

The SCADA Nomad NX system is a proprietary solution designed for comprehensive management of photovoltaic and wind farms integrated with energy storage systems. The software enables real-time monitoring of installation performance and supports strategic decision-making by providing investors with data necessary to assess the profitability of various operational scenarios.

Thanks to full integration with energy equipment – from inverters and storage systems to grid connection stations – SCADA Nomad NX ensures precise control over infrastructure, automates charging and discharging processes, and enables quick response to energy price fluctuations. It is a tool that increases predictability, reduces risk, and enhances the economic efficiency of RES projects.

Should every PV or wind farm include storage?

Although the benefits of using energy storage systems are significant, not every investment absolutely requires their implementation.

The decision should be preceded by an analysis of production and consumption profiles, the characteristics of the local power grid, and available distribution tariffs. In some locations, flexible connection conditions or stable off-takers may reduce the need for storage.

However, it is worth emphasizing that market and regulatory trends support decentralized models and the concept of the collective prosumer, in which the energy storage system becomes one of the pillars of stable business operations in the RES sector.

Regulations and support for energy storage investments

Energy storage systems are increasingly being included in national and EU support programs. Polish legislation, although still evolving, already provides specific instruments that can facilitate the financing and implementation of such investments. The most important include programs run by the National Fund for Environmental Protection and Water Management (NFOŚiGW), such as “Mój Prąd”, “Energia Plus”, and the “Fundusz Modernizacyjny”. For large farms, participation in RES auctions and umbrella programs supported by EU funds should also be considered.

From a formal point of view, an energy storage system is treated as an auxiliary device to a RES installation, which means its construction may be subject to simplified procedures – especially if it is carried out on a site already covered by an environmental decision or connection conditions. However, for large projects, it may be necessary to obtain separate connection conditions and notify the Distribution System Operator of changes. Increasingly, operators are applying procedures tailored to installations integrated with storage, providing for special forms of settlement.

From a legal perspective, it is also essential to monitor updates to the Energy Law and the Renewable Energy Sources Act – amendments are increasingly defining the role of energy storage in the power system, enabling their active participation in the balancing market or flexibility services.

Recommendations for farm owners

An energy storage system is no longer merely an optional element of a PV or wind farm’s infrastructure – it is increasingly becoming an integral component that determines the profitability of the entire venture. The ability to increase self-consumption, better manage energy sales, and protect against losses due to unstable energy prices are benefits that directly translate into the financial performance of the project.

Investors planning new farms or expanding existing installations should consider cooperating with experienced technology and consulting partners who not only provide the right equipment but also assist in the economic, legal, and regulatory analysis of the entire investment. It is also worth considering the role of software and control systems – such as SCADA Nomad NX – which enable flexible and intelligent energy management.

Although each investment requires individual analysis, under current market and regulatory conditions, an energy storage system can be a key element of a RES farm’s competitive advantage – and increasingly, a condition for its survival in an ever more demanding energy market.

Frequently asked questions (FAQ)

1. Does an energy storage system increase the profitability of a photovoltaic or wind farm?
Yes. The storage system allows excess energy produced during periods of low demand to be stored and used when energy prices are higher. This way, the investor can avoid selling at minimum prices or even losses resulting from the need to shut down the installation.
2. What are the main economic benefits of using an energy storage system?
The most important include: increased self-consumption, the ability to sell energy at more favorable market times, protection against negative energy prices, and greater independence of the installation thanks to the possibility of off-grid operation.
3. Which energy storage technologies are most commonly used?
The most widespread are battery storage systems, especially lithium-ion batteries and LFP cells. They are characterized by high efficiency, high energy density, and suitability for daily cyclic operation.
4. Is an energy storage system suitable for every renewable energy farm?
Not always. The decision to implement storage should be preceded by an analysis of local grid conditions, the production and consumption profile, and available tariffs. In some cases, other forms of optimization may be more profitable.
5. Which systems support the management of a farm with an energy storage system?
Management is usually carried out using SCADA systems, such as Nomad NX. They enable monitoring, control, and automation of charging and discharging processes, often with the use of weather and market data.
6. Does Polish law support investments in energy storage systems?
Yes. The current regulations provide formal facilitations, especially for storage systems installed as auxiliary devices for renewable energy sources.
7. Does the construction of an energy storage system at a photovoltaic farm require separate permits?
Yes. The construction of an energy storage system at a photovoltaic farm always requires obtaining connection conditions and reporting changes to the grid operator.
8. Can investment in an energy storage system increase the competitiveness of a renewable energy farm?
Definitely yes. Storage improves production predictability, reduces risks associated with energy market instability, and can be a distinguishing element of a project compared to other investments.