Description

TABLE OF CONTENTS

Executive summary (4)

1. New regulations and initiatives discussed this month (6)

1.1. Europe (6)

1.2. North America (7)

1.3. Middle East (9)

2. Project updates and announcements (9)

2.1. Overview of the 2022 & 2023 market for utility-scale energy storage projects (9)

2.2. Projects announced or contracted this month (10)

2.3. Projects commissioned this month (11)

2.4. Tenders this month (12)

3. Focus of the month: The business model of energy storage in saturated markets (13)

3.1. France FCR and UK ancillary services market saturation (13)

3.1.1. France (13)

3.1.2. Great Britain ancillary services market saturation (19)

3.2.  The future of saturated markets (25)

3.2.1. Price structure in saturated markets (25)

3.2.2. Risk of progressive market saturation (28)

3.2.3. Possible evolutions of saturated markets (29)

TABLE OF FIGURES

Figure 1 - Utility-scale energy storage projects announced/contracted and commissioned in 2022 and 2023 (ongoing) (10)

Figure 2 - Illustration of market evolution in France since 2018 (13)

Figure 3 - Installed, operational and announced BESS projects in mainland France (14)

Figure 4 - French FCR prices and procured volume in 2022/2023 (15)

Figure 5 - Bid ladder for most expensive FCR timeslot (16)

Figure 6 - FCR French and German prices evolution (17)

Figure 7 - Bid ladder for cheapest FCR timeslot – February 7th 2023 at 4 PM (17)

Figure 8 - French FCR bid ladder on March 15th at 4 PM (18)

Figure 9 - Dynamic Containment prices (21)

Figure 10 - Dynamic containment high executed and rejected volumes (21)

Figure 11 - Dynamic containment low executed and rejected volumes (22)

Figure 12 - Day-ahead daily spreads (24)

Figure 13 - Balancing market daily spreads (25)

Figure 14 - Illustration of the price taker and price maker bid ladder (26)

Figure 15 - Price taker push out expensive assets out of the merit order (27)

Figure 16 - Evolution of reserve requirement in France for various scenarios of RTE (Source: Futurs énergétiques 2050)  (29)

Figure 17 - Evolution of saturated markets (30)

Figure 18 - Logic decision of investors (32)