Description

Table of contents

Executive Summary (2)

New regulations and initiatives discussed this month (4)

Americas (4)

United States (4)

Europe (5)

United Kingdom (5)

Projects updates and announcements (6)

Overview of the 2019 market for utility-scale energy storage projects (6)

Projects announced or contracted this month (7)

Projects commissioned this month (8)

Tenders this month (9)

Focus of the month: The potential for battery energy storage systems in South America (11)

South American countries are sending several green lights to energy storage (11)

Although there are no ancillary services market in South America yet, Frequency Regulation represents the main opportunity for storage on the continent (13)

Ancillary services are mandatory in South America, but batteries can allow generating assets to avoid the opportunity cost of Frequency Regulation (13)

Chile and Peru present solid business cases for batteries providing frequency regulation (15)

In other South American countries, the business case for Frequency regulation could be interesting, provided it is authorized (18)

In several South American countries, Behind-the-Meter storage can reduce electric bills through peak-shaving, but revenues remain insufficient to invest in storage (19)

In Chile, which has one of the world’s highest electricity tariff regime, the case for BTM storage is nearly mature (19)

In other countries, the revenue from peak shaving is not sufficient, as of now, to justify a business case, but could be interesting if additional revenues become available (21)

The development of storage projects is in its early stage, with incentives mostly national and regulatory (22)

The development for storage projects in South America has taken place mostly in Chile, but is slowly expanding to other countries (22)

Top-down initiatives in Chile, Colombia and Brazil to boost energy storage are working on creating the right conditions for storage development (24)

After expiry of the contract, the battery will be free to operate on the energy markets. 25

Table of Figures

Figure 1: Utility-scale energy storage projects announced/contracted and commissioned in 2018 and 2019 (ongoing) (6)

Figure 1: Heat Map of Storage opportunities in South America (12)

Figure 2: Example of estimated opportunity costs associated to the provision of frequency regulation (13)

Figure 3: Estimate of the opportunity cost of coal plants in the North of Chile for frequency regulation (16)

Figure 4: Opportunity cost estimate for gas-fuel plant in Ventanilla, Peru (17)

Figure 5: Yearly opportunity cost for a gas-fueled plant for Frequency Regulation Provision in South American Countries (18)

Figure 6: Simplified business case for BTM peak shaving in Chile (19)

Figure 7: Estimate of the potential revenue for Behind-The-Meter peak shaving in Argentina,Uruguay and Ecuador (21)

Figure 9: Battery Energy Storage Projects announced and commissioned across South America (23)