Description

 TABLE OF CONTENTS

Executive summary (5)

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

2. Project updates and announcements (9)

Overview of the 2021 & 2022 market for utility-scale energy storage projects (9)

Projects announced or contracted this month (10)

Projects commissioned this month (12)

Tenders this month (13)

3. Focus of the month: Long-duration energy storage: challenges and opportunities (15)

3.1. Despite current regulatory hurdles, Alberta is paving the way for energy storage (16)

3.1.1. The regulatory framework is ongoing an overhaul to account for better energy storage participation in the wholesale market (16)

3.1.2. The spike of electricity prices is transforming a once not-so-interesting revenue into an opportunity (17)

3.1.3. Ancillary services: the block configuration and unclear rules hinder full market participation (19)

3.2. Despite the growing uptake, current market configurations are not advantageous to LDES (21)

3.2.1. Accessibility to storage (22)

3.2.2. The revenue streams (23)

3.2.3. Global Adjustment (GA): electricity bill reduction (26)

3.3. Business Model of an energy storage system in Ontario (27)

3.3.1. Front-of-the-meter storage in Ontario (28)

3.3.2. Behind-the-meter storage in Ontario (29)

TABLE OF FIGURES

Figure 1. Results of Italy's latest capacity market auction 9

Figure 2: Utility-scale energy storage projects announced/contracted and commissioned in 2021 and 2022 (ongoing) 10

Figure 3. Overview of the Canadian energy storage environment 15

Figure 4. Distribution of hourly pool prices over 2018 - 2021 18

Figure 5. Energy storage resources registration on the Ontario electricity market 23

Figure 6. Revenue streams available for energy storage facilities in Ontario 24

Figure 7. 2022 capacity auction timeline 26

Figure 8. Electricity storage facilities involved in the new market rules 27

Figure 9. Financial assumptions for the business case in Ontario 28

Figure 10. Different revenues of the IESO-administrated Market FTM storage facility (not eligible for Global Adjustment) (29)

Figure 11. Only Global Adjustment-based project revenue (BTM) (29)

Figure 12. Revenue based on the number of peaks shaved (30)

TABLE OF TABLES

Table 1. Average annual pool prices (CAD/MWh) in Alberta (17)

Table 2. Volumes of procured active operational reserves in 2021 (20)