Description

TABLE OF CONTENTS

Executive summary (2)

New regulations and initiatives discussed this month (5)

Americas (5)

United States (5)

Europe (5)

Germany (5)

Australia & Oceania (5)

Australia (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)

Projects commissioned this month (10)

Australia & Oceania (10)

Americas (10)

Tenders this month (11)

Americas (11)

Focus of the month: PICASSO, secondary reserves harmonised across Europe, what’s in it for storage? (12)

I) The aFRR : an ancillary service widely differing from one country to another (12)

1. The aFRR features several technical specificities (12)

2. The current contracting process is not homogenous in Europe (13)

3. The IGCC framework is the first brick of an aFRR European mutualization (15)

II) The PICASSO project has triggered an in-depth, cross-border review of the aFRR (16)

1. The PICASSO project will enable European countries to share a standardized aFRR product (16)

2. Most of the European countries will have implemented the platform by 2023 (17)

III) Opportunities for battery storage arise as aFRR procurement process is revised (18)

1. The aFRR features potential high levels of revenue for storage (18)

2.  Storage participation to the aFRR will be driven by the upcoming regulatory changes (19)

3. Emerging opportunities are likely to be country-specific (20)

4. Operating a battery on the aFRR implies to use a basic energy bidding strategy (20)

TABLE OF FIGURES

Figure 1. Potential uptake of DNSP SAPS (6)

Figure 2. Utility-scale energy storage projects announced/contracted and commissioned in 2019 and 2020 (ongoing) (7)

Figure 3. Awarded projects under the Stage 2 of the Variable Renewable Dispatchable Generation and Energy Storage RFP (8)

Figure 4. Example of a frequency deviation leading to reserve activation (12)

Figure 5. Overview of the current aFRR contracting process in Western Europe (14)

Figure 6. General principles of the aFRR allocation through a market mechanism (14)

Figure 7. Comparison of the economic merit order activation with the pro-rata activation (15)

Figure 8. PICASSO platform simplified framework (16)

Figure 9.  PICASSO project advancement by country according to April 2020 roadmap (17)

Figure 10.  Average capacity remuneration for a symmetrical bid on the aFRR in Europe (18)

Figure 11. Example of an aFRR bidding strategy based on the battery state of charge (21)