Market Segment Watch France 2017

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A complete and brief summary of the opportunities for energy storage in France linked to the recent changes in the French electricity sector favoring energy storage (opening of the frequency regulation market, new capacity market, new DSO flexibility services…).

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Market Segment Watch: France

Clean Horizon’s new report on the French market for energy storage

France is well known for its large nuclear installed capacity and its low electricity prices, however, the French islands have led to regular solar plus storage tenders since 2011.

Moreover, recent changes in the regulation open up the market for energy storage with:

  • Frequency regulation: France just joined the German common auction
  • Self-consumption: news regulations favoring energy storage
  • The new capacity market: an opportunity for energy storage

 

Energy storage in France in figures:

  • 60MWh of energy storage systems are already commissioned in France, and 80 MWh are contracted and are to be installed before 2019.
  • 100 MWh, the amount of energy storage systems that Clean Horizon projects to be online in France by 2020.
  • 17 energy storage projects already commissioned in France larger than 1 MW

 

What can you find in this report?

  • Context on the French electricity landscape
  • The case of the islands
  • The revenue streams that are interesting for energy storage systems
  • The projects installed in France

 

Who needs this report?

  • Project developers
  • System integrators
  • Solution providers
  • Equipment manufacturers
  • Financiers


 Table of contents

Introduction: The French electricity landscape                                          3

1    The French islands opportunity                                                          5

1.1    Context                                                                                        5

1.2    Request for proposals (RFPs) for PV plus storage projects                6

  1. a) Operating constraints of the latest CRE tender 6
  2. b) Glimpse on the business case 8

1.3    Centralized frequency regulation with batteries                              9

1.4    Feed-in tariffs for hurricane resistant wind plus storage projects   10

1.5    Self-consumption with PV  plus batteries in La Réunion                10

1.6    Perspectives and evolutions for storage in the French islands        11

2    Behind-the-meter applications: PV self-consumption                          13

2.1    Context                                                                                      13

2.2    New regulations regarding self-consumption and their implications        14

  1. a) Energy transition law: first recommendations regarding self-consumption 14
  2. b) Law on self-consumption (“Ordonnance sur l’autoconsommation”) 14
  3. c) Self-consumption convention 14
  4. d) Law on closed distribution grid 15
  5. e) RFPs and objectives set by the PPE 16

2.3    Business case: using storage to self-consume more PV                   17

  1. a) First example: C&I PV self-consumption through tenders 17
  2. b) Second example: Residential PV plus storage 19

3    Flexibility services to the DSO                                                          20

3.1    Context                                                                                      20

3.2    Rules to provide flexibility services                                              20

3.3    Revenues from flexibility services provided to the DSO                  21

  1. a) Presentation of the use case: grid investment deferral 21
  2. b) Possible revenue streams 22
  3. c) Threats to the business case 22

4    Ancillary services: participation of storage in primary reserve             23

4.1    Context                                                                                      23

4.2    Specific rules for the procurement of primary reserve                    24

  1. a) The common platform Regelleistung 24
  2. b) Rules to participate in the auction 25

4.3    Business case: providing primary reserve with batteries                26

  1. a) Presentation of the use case 26
  2. b) Possible threats to the business case 29

5    Multi-valorization asset: potential side revenue streams for storage    30

5.1    Intraday trading                                                                         30

  1. a) Context 30
  2. b) Rules and possible evolutions 31
  3. c) Possible revenue streams through intraday trading 31

5.2    Balancing mechanism and imbalance settlements                         32

  1. a) Context 32
  2. b) Rules to participate in the balancing mechanism 32
  3. c) Possible revenue streams for storage through the balancing mechanism 33

5.3    Capacity market                                                                         33

  1. a) Context 33
  2. b) Rules to participate in the capacity mechanism 33
  3. c) Participation of storage and possible revenues through the capacity market 34

5.4    Multi-valorization of storage: potential side revenue streams         35

  1. a) Which revenue streams can be associated together? 35
  2. b) Example of a multi-valorization business case 36

Conclusion                                                                                            38

Appendices                                                                                              

The energy storage stakeholders in France                                              

Possibility to finance energy storage projects or companies in France        

List of installed projects (with sizes > 1 MW)

Additional information

Language

English, French