Description

TABLE OF CONTENTS

Executive summary (2)

New regulations and initiatives discussed this month (5)

Americas (5)

Australia & Oceania (5)

Europe (5)

Project updates and announcements (6)

Overview of the 2020 market for utility-scale energy storage projects (6)

Projects announced or contracted this month (7)

Australia & Oceania (7)

Americas (8)

Projects commissioned this month (10)

Americas (10)

Europe (10)

Tenders this month (10)

Americas (10)

Europe (11)

Focus of the month: Rise of the Iberic Peninsula market for stationary energy storage: Portugal leads the way and Spain slogs along (12)

I. Spanish market awaits an imminent regulatory change to initiate the deployment of commercial utility-scale storage (12)

I-1 The Spanish electricity sector (12)

I-2 Utility-scale storage projects have stayed at the demonstration stage in Spain (14)

I-3 Spanish ancillary services and balancing markets do not provide a solid business case for storage today despite attractive secondary reserve revenues (15)

I-4 Commercial PPA may be the solution for unlocking the Spanish market for storage (17)

I-5 One or several storage-favorable regulatory changes should arise within the next year (19)

II. Portugal gives its green light to storage developers with an entry door in the next long-term solar auction (20)

I-1 The Portuguese electricity sector (20)

I-2 Utility-scale operational storage capacity remains close to zero in Portugal (21)

I-3 Portuguese ancillary services and balancing markets: the secondary reserve market is currently the most lucrative service, even though regulation is not favorable (21)

I-4 The next long-term solar auctions will include a storage participation option (22)

I-5 Several auctions should follow, but storage still needs a regulation boost in Portugal (25)

TABLE OF FIGURES

Figure 1. Utility-scale energy storage projects announced/contracted and commissioned in 2019 and 2020 (ongoing) (7)

Figure 2.  Projects supported by the Regional Community Energy Fund (8)

Figure 3 : Evolution of the Spanish electricity mix from 2015 to 2019 (13)

Figure 4 : Day-ahead market features in Spain, France and Germany (2019 data) (14)

Figure 5 : Existing operational utility-scale battery storage systems in Spain (15)

Figure 6 : Spanish ancillary services and balancing markets (16)

Figure 7 : Average 2019 curve of day-ahead market prices (18)

Figure 8 : Construction of a business case for stationary storage coupled with PV in Spain (18)

Figure 9 : Evolution of the Portuguese electricity mix from 2015 to 2019 (20)

Figure 10 : Bidding options for 2020 solar auction (23)

Figure 11 : Definition of the strike price (23)

Figure 12 : Last auction extreme awarded bids 2019 equivalent NPV comparison (24)