Description

France is well known for its large nuclear installed capacity and its low electricity prices, however, the French islands have led to regular solar plus storage tenders since 2011.

Moreover, recent changes in the regulation open up the market for energy storage with:

• Frequency regulation: France just joined the German common auction
• Self-consumption: news regulations favoring energy storage
• The new capacity market: an opportunity for energy storage

Energy storage in France in figures:

• 60MWh of energy storage systems are already commissioned in France, and 80 MWh are contracted and are to be installed before 2019.
• 100 MWh, the amount of energy storage systems that Clean Horizon projects to be online in France by 2020.
• 17 energy storage projects already commissioned in France larger than 1 MW

What can you find in this report?

• Context on the French electricity landscape
• The case of the islands
• The revenue streams that are interesting for energy storage systems
• The projects installed in France

Who needs this report?

• Project developers
• System integrators
• Solution providers
• Equipment manufacturers
• Financiers

TABLE OF CONTENTS

Introduction: The French electricity landscape (3)

1.    The French islands opportunity (5)

1.1.    Context (5)

1.2.    Request for proposals (RFPs) for PV plus storage projects (6)

1.2.1. Operating constraints of the latest CRE tender (6)

1.2.2. Glimpse on the business case (8)

1.3.    Centralized frequency regulation with batteries (9)

1.4.    Feed-in tariffs for hurricane resistant wind plus storage projects (10)

1.5.    Self-consumption with PV  plus batteries in La Réunion (10)

1.6.    Perspectives and evolutions for storage in the French island (11)

2.    Behind-the-meter applications: PV self-consumption (13)

2.1.    Context (13)

2.2.    New regulations regarding self-consumption and their implications (14)

2.2.1. Energy transition law: first recommendations regarding self-consumption (14)

2.2.2. Law on self-consumption (“Ordonnance sur l’autoconsommation”) (14)

2.2.3. Self-consumption convention (14)

2.2.4. Law on closed distribution grid (15)

2.2.5. RFPs and objectives set by the PPE (16)

2.3.    Business case: using storage to self-consume more PV (17)

2.3.1. First example: C&I PV self-consumption through tenders (17)

2.3.2. Second example: Residential PV plus storage (19)

3.    Flexibility services to the DSO (20)

3.1.    Context (20)

3.2.    Rules to provide flexibility services (20)

3.3.    Revenues from flexibility services provided to the DSO (21)

3.3.1. Presentation of the use case: grid investment deferral (21)

3.3.2. Possible revenue streams (22)

3.3.3. Threats to the business case (22)

4.    Ancillary services: participation of storage in primary reserve (23)

4.1.    Context (23)

4.2.    Specific rules for the procurement of primary reserve (24)

4.2.1. The common platform Regelleistung (24)

4.2.2. Rules to participate in the auction (25)

4.3.    Business case: providing primary reserve with batteries (26)

4.3.1. Presentation of the use case (26)

4.3.2. Possible threats to the business case (29)

5.    Multi-valorization asset: potential side revenue streams for storage (30)

5.1.    Intraday trading (30)

5.1.1. Context (30)

5.1.2. Rules and possible evolutions (31)

5.1.3. Possible revenue streams through intraday trading (31)

5.2.    Balancing mechanism and imbalance settlements (32)

5.2.1. Context (32)

5.2.2. Rules to participate in the balancing mechanism (32)

5.2.3. Possible revenue streams for storage through the balancing mechanism (33)

5.3.    Capacity market (33)

5.3.1. Context (33)

5.3.2. Rules to participate in the capacity mechanism (33)

5.3.3. Participation of storage and possible revenues through the capacity market (34)

5.4.    Multi-valorization of storage: potential side revenue streams (35)

5.4.1 Which revenue streams can be associated together? (35)

5.4.2 Example of a multi-valorization business case (36)

Conclusion (38)

Appendices                                                                                              

The energy storage stakeholders in France                                              

Possibility to finance energy storage projects or companies in France        

List of installed projects (with sizes > 1 MW)