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Polish Power Grids Contract with OLMEX SA for Reactive Power Compensation Systems Worth €26.4 Million

By Admin | Posted on 24 Oct 2025


Polish Power Grids Contract with OLMEX SA for Reactive Power Compensation Systems Worth €26.4 Million

Warsaw, Poland - 14 October 2025 

OLMEX SA Research and Implementation Company has been awarded a significant contract worth €26.44 million by the Polish Power Grids Joint Stock Company (Polskie Sieci Elektroenergetyczne S.A. - PSE) for the design, manufacture, and installation of reactive power compensation devices - Stage IIA (150 Mvar). The contract, which was announced on October 9, 2025, in the Official Gazette S 194/2025, is an important step towards improving the stability and energy efficiency of Poland's national electricity transmission system.

Project Overview

The design, production, delivery, assembly, and commissioning of advanced reactive power compensation devices at PSE's designated substations are all included in the project, which is formally designated under Tender ID: 2023/WNP-0288. In Poland's high-voltage transmission grid, these devices are crucial for preserving voltage stability, enhancing power quality, and facilitating the integration of renewable energy sources.

In line with PSE's mission to guarantee safe and dependable electricity transmission throughout the nation, the project is a component of Poland's larger grid modernisation plan, Stage IIA.

A multi-year implementation framework for design, installation, and performance testing is highlighted by the contract's duration, which spans from September 2024 to April 2028.

Procurement Details and Award Criteria

The open tender procedure, conducted under Directive 2014/25/EU and the Polish Public Procurement Law (Act of 11 September 2019), was launched via PSE’s online platform (https://przetargi.pse.pl) and attracted one electronic bid.

Price accounted for 86% of the evaluation, with other technical and quality criteria such as:

  • Value of Loss (6%).

  • Reduced partial discharge (2%) in insulators

  • Quality of compensation choke (4%)

  • Quality of electrically insulating oil (2%)

After evaluation, the most advantageous bidder-OLMEX SA-offered a technically sound and economical proposal.

Signed on March 12, 2025, the contract has an estimated total value of €26,443,415.76 (VAT excluded), which is marginally less than the €26.6 million initial budget estimate.

Entities Involved
  • Polish Power Grids Joint Stock Company (PSE S.A.) is the contracting authority.

  • OLMEX SA Research and Implementation Company was the chosen contractor.

  • Review and Mediation Body: National Chamber of Appeal (Krajowa Izba Odwoławcza)

Strategic Importance

In order to stabilise voltage levels throughout the Polish transmission grid, especially in areas incorporating variable renewable generation, 150 Mvar reactive power compensation systems must be installed. The project directly supports Poland's energy transition objectives, lowers transmission losses, and increases grid reliability.

The investment "represents another major milestone in reinforcing Poland's high-voltage infrastructure to meet the growing energy demand and ensure system flexibility amid the evolving power landscape," a senior PSE representative stressed.

The project's noteworthy affiliation with the Connecting Europe Facility (CEF) 2014-2020 highlights its support for EU-backed efforts to improve grid resilience and cross-border energy infrastructure.

About OLMEX SA

OLMEX SA is a Polish research and implementation company that was founded in Wójtowo, close to Olsztyn. It specialises in power transmission technologies, automation systems, and electrical equipment manufacturing. The business has a proven track record of providing industrial power customers and national utilities with high-voltage components and control systems.

Poland's ability to complete intricate energy infrastructure projects domestically is strengthened by OLMEX's selection by PSE, which highlights the company's expanding reputation in grid engineering and innovation.

Taking a Forward Look

Commissioning is planned for spring 2028, and the project's implementation phase is anticipated to start in late 2025. In accordance with Poland's Energy Policy 2040 (PEP2040), the reactive power compensation systems will improve grid stability and encourage the ongoing integration of renewable energy sources once they are operational.

Tags:
#Poland, #PSE, #PolishPowerGrids, #OLMEX SA, #EnergyInfrastructure, #VoltageTransformers, #reactive power compensation, #electricity transmission, #ContractAward, #TenderResults, #ProcurementNews, #publishProcurement, #EU Directive 2014/25/EU, #ConnectingEuropeFacility, #GridModernization, #RenewableIntegration

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