Description

TABLE OF CONTENTS

Executive summary (4)

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

1.1. Europe (6)

1.2. North America (6)

2. Project updates and announcements (8)

2.1. Overview of the 2023 and 2024 markets for utility-scale energy storage projects (8)

2.2. Projects announced or contracted this month (8)

2.3. Projects commissioned this month (10)

2.4. Tenders this month (12)

3. Focus of the month: Impact of batteries and new countries on the PICASSO Platform (15)

3.1. Presentation of the platform (15)

3.2. PICASSO prices and volumes (17)

3.3. Storage revenues on PICASSO (21)

3.4. Countries joining the platform (23)

3.5. High Price Mitigation Measures (25)

3.6. Cannibalization of aFRR energy market and impact on merit order shape (29)

3.7. Expected impact of new countries joining PICASSO platform (33)

TABLE OF FIGURES

Figure 1 - Utility-scale energy storage projects announced/contracted and commissioned in 2023 and 2024 (ongoing) (8)

Figure 2 - Energy storage systems awarded in Ontario's Long-Term 1 Request for Proposals (LT1 RFP) (9)

Figure 3 - Energy storage systems awarded in Japan's First Long-Term Decarbonization Auction (10)

Figure 4 - Example of an aFRR product offer (15)

Figure 5 - Bid ladder example (16)

Figure 6 - PICASSO implementation date according to April 2024 roadmap (16)

Figure 7 - Bid ladder of two TSOs with no cross-border capacity limit (18)

Figure 8 - Bid ladder of two TSOs with 100 MW cross-border capacity limit (19)

Figure 9 - Comparison of volumes in each country (20)

Figure 10 - German price evolution (21)

Figure 11 - Revenues generated on PICASSO platform (50Hertz prices) in 2023 in €/MW for different storage durations (22)

Figure 12 - Market price compared to bid price (22)

Figure 13 - Percentage of activation as function of bid price (23)