Description

Table of Contents

Executive Summary (2)

Table of figures (4)

New regulations and initiatives discussed this month (5)

Americas (5)

Europe (5)

Asia-Oceania (7)

Projects updates and announcements (8)

Overview of the 2018 market for utility-scale energy storage projects (8)

Projects announced this month (8)

Americas (8)

Europe (9)

Oceania (10)

Projects commissioned this month (10)

Americas (10)

Europe (10)

Projects tendered this month (10)

Focus of the month: Ancillary services redefinition in Ireland: the next European opportunity for large scale energy storage (11)

The DS3 programme is being finalized and will widely modify the ancillary services procurement process (13)

The DS3 programme defines 14 system services to manage voltage and frequency variations (13)

The DS3 programme enters its final phase of implementation, and procurements are starting to take place (15)

Battery storage is likely to become a key component of the Irish system after implementation of the DS3 programme (18)

Operating Reserves and FFR payments are weighed by coefficients aiming at incentivizing certain behaviors from system service providers (20)

The revenues of a storage asset depend on the performance of the asset but also on external factors, making the business case complex to evaluate (23)

The Irish market offers opportunities for potential upsides and additional revenue streams (27)

Table of figures

Figure 1: Battery storage capacity registered and awarded a capacity contract in the 2018 T-1 and T-4 capacity auction in the UK (6)

Figure 2: Storage developers awarded with a capacity contract in the T-4 auction and their corresponding awarded capacity of storage (7)

Figure 3: Utility scale energy storage projects announced and commissioned for 2017 and beginning of 2018 (8)

Figure 4: Usage of available wind energy and logic for curtailment in 2016 in Ireland (12)

Figure 5: Description of the 14 system services being implemented in Ireland under the DS3 programme (14)

Figure 6: Overview of the activation timeframe of the FFR and Operating Reserves (15)

Figure 7: Regulated remuneration of system services as proposed by the Irish TSOs (16)

Figure 8: System services procurement timeline for capped and uncapped volumes in the DS3 programme (18)

Figure 9: Representation of the system services payment calculation formula (20)

Figure 10: Illustration of the differences between static and dynamic provision of reserve (21)

Figure 11: Static response returning the highest product scalars (22)

Figure 12: Revenues available to a storage system providing system services (assuming the regulated tariffs apply) (25)

Figure 13: Estimation of the probable level of tariffs bid by storage system in the upcoming capped volume procurement (26)

Figure 14: Example of de-rating factors applicable to battery storage systems in the Irish capacity mechanism (29)