Description

TABLE OF CONTENTS

Executive summary (5)

1. New regulations and initiatives discussed this month (7)

1.1. Europe (7)

1.2. Asia (8)

1.3. North America (9)

2. Project updates and announcements (10)

2.1. Overview of the 2021 & 2022 market for utility-scale energy storage projects (10)

2.2. Projects announced or contracted this month (11)

2.3. Projects commissioned this month (13)

2.4. Tenders this month (14)

3. Focus of the month: Energy storage in Germany: looking out for new opportunities (17)

3.1. Overview of energy storage projects in Germany (17)

3.2.  Revenue streams in Germany (19)

3.2.1. Wholesale markets (19)

3.2.1.1. Day-ahead market (20)

3.2.1.2. Continuous intraday market (21)

3.2.2. FCR: a close to staturated market (25)

3.2.3. aFRR: the next opportunity for storage (27)

3.2.3.1 Storage prequalification rules for aFRR provision (27)

3.2.3.2. Capacity reservation market (28)

3.2.3.3. Energy activation market (36)

3.2.4. Innovation tender (41)

3.3.  Business case in Germany (42)

TABLE OF FIGURES

Figure 1 - Utility-scale energy storage projects announced/contracted and commissioned in 2021 and 2022 (ongoing) (11)

Figure 2 - Total installed and planned projects in MW in Germany (18)

Figure 3 - Total installed and planned projects in MWh (18)

Figure 4 - Classification of projects by storage duration (19)

Figure 5 - Structure of trading process in wholesale markets in Germany (20)

Figure 6 - Daily price spread on the day-ahead market between 01/21 and 10/22 (20)

Figure 7 - Example of transactions and offers in an order book in the intraday market (21)

Figure 8 - Revenue opportunity in the continuous intraday market (21)

Figure 9 - Example of executed orders in the continuous intraday market (22)

Figure 10 - Illustration of a storage asset trading strategy on intraday (24)

Figure 11 - FCR prices evolution from October 2021 (26)

Figure 12 - FCR prices evolution since 2015 (26)

Figure 13 – aFRR auction timeline (29)

Figure 14 - aFRR reservation marginal price (30)

Figure 15 - aFRR reservation average price (30)

Figure 16 - Rolling average for DOWN aFRR reservation price (31)

Figure 17 - Rolling average for UP aFRR reservation price (31)

Figure 18 - Average bid ladder for UP aFRR reservation auction in 2022 (32)

Figure 19 - Average bid ladder for DOWN aFRR reservation auction in 2022 (33)

Figure 20 - 30th of April 2022 average aFRR UP reservation bid prices (34)

Figure 21 - Impact of BESS on the merit order (35)

Figure 22 - Illustration of the auction process of BM and aFRR (36)

Figure 23 - Accession roadmap PICASSO (37)

Figure 24 - Rolling average of the aFRR activation prices (38)

Figure 25 - Prices' occurrences on aFRR energy PICASSO platform May 2022 - December 2022 (39)

Figure 26 - Activation prices for 15-minute timeslot (40)

Figure 27 - Daily spread on the aFRR activation market (40)

Figure 28 - Required sizing to participate in Innovation Tender (41)

Figure 29 - Innovation tender auction volume (MW) (42)