Description

TABLE OF CONTENTS

1 Executive Summary (5)

2 New regulations and initiatives discussed this month (7)

2.1 North America (7)

2.2 Oceania (7)

2.3 Asia (8)

3 Project updates and announcements (9)

3.1 Overview of the 2023 and 2024 markets for utility-scale energy storage projects (9)

3.2 Projects announced or contracted this month (10)

3.3 Projects commissioned this month (11)

3.4 Tenders this month (12)

4 Focus of the Month: Locational Value of Energy Storage (15)

4.1 Introduction (15)

4.2 Opportunities for Project Revenue Uplift or System Cost Reduction (16)

4.2.1 Redispatch savings at a country level: the German Netzboosters (16)

4.2.2 UK’s Flexibility Markets (17)

4.2.3 GB’s Balancing Mechanism (18)

4.2.4 Zonal Pricing in Sweden (19

4.3 Opportunities for Project Cost Reduction (20)

4.3.1 France’s new grid fees (TURPE) (20)

4.3.2 Grid fees in the UK (TNUoS) (21)

5 Conclusion (25)

TABLE OF FIGURES

Figure 1: Locational Value of Storage (6)

Figure 2: Utility-scale energy storage projects announced/contracted and commissioned in 2023 and 2024 (ongoing) (9)

Figure 3: Heatmap of congestion in the Netherlands. Demand side congestion (left) limits commercial, industrial and housing development and supply congestion (right) impacts new generation. White indicates available transmission capacity whereas red indicates a shortage (15)

Figure 4: Flexibility Markets in Europe (17)

Figure 5: Timeline of EPEX Auctions (18)

Figure 6: Bidding Zones of Sweden (19)

Figure 7: Zonal DA arbitrage revenues in Sweden for a 1MW/3 Hour Battery (20)

Figure 8: Grid Fees in Constrained Regions of France (21)

Figure 9: Wider Generation Tariff Heatmap for a sample 4hr system with a 1 cycle per day strategy based on the finalized 2024/25 tariff. Green regions are better since a project built here have a negative rate (23)

igure 10: Embedded generators (<100MW) can earn a credit for exporting electricity during triad periods (24)

Figure 11: Locational Value of Storage (25)