Description

Table of contents

Executive Summary (2)

Table of figures (5)

New regulations and initiatives discussed this month (6)

Americas (6)

United States (6)

Canada (6)

Europe (7)

Ireland (7)

United Kingdom (7)

Asia (7)

India (7)

Projects updates and announcements (8)

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

Projects announced or contracted this month (9)

Projects commissioned this month (10)

Projects tendered this month (11)

Focus of the month: the market for secondary control reserve provision in Germany (13)

Description of the German secondary reserve market (13)

General rules of the market (13)

Changes in the auction from July 2018 (14)

Bids selection and computation of energy and capacity prices (14)

Looking at the potential revenues in 2017 on secondary reserve (16)

Capacity reservation revenues (16)

Energy revenues (18)

Building the business case for secondary reserve based on 2017 prices (20)

Consequences of the evolution of the auction format (22)

Increase in market liquidity (22)

Increased volatility in the auction price (24)

Evolution of the average energy activation price (24)

Conclusion (26)

Table of Figures

Figure 1: Utility-scale energy storage projects announced/contracted and commissioned in 2017 and 2018 (ongoing) (8)

Figure 2: Changes in the secondary reserve auction timeline (14)

Figure 3: Illustration of secondary reserve awarded capacity (15)

Figure 4: Activated energy for secondary reserve in Germany and bids selection (16)

Figure 5: Capacity prices for secondary reserve in 2017 between the hours of 00:00h and 08:00h as well as between 20:00h and 24:00h from Monday through Friday, all day on Saturday, Sunday and public holidays applicable to all of Germany (17)

Figure 6: Capacity prices for secondary reserve in 2017 between the hours of 08:00h and 20:00h from Monday through Friday (excluding public holidays applicable to all of Germany) (17)

Figure 7: Activation of negative and positive secondary reserves the first week of 2017 in Germany (18)

Figure 8: Maximum daily spread in energy activation prices depending on discharge duration (19)

Figure 9: Payments expected of a battery storage system depending on storage discharge duration (20)

Figure 10: Business case for a 10MW/ 10MWh storage system providing secondary reserve based on 2017 prices (21)

Figure 11: Business case for a 10MW/ 40MWh storage system providing secondary reserve based on 2017 prices (22)

Figure 12: Number of bids for positive reserve and average bid size in 2018 (23)

Figure 13: Evolution of the secondary reserve capacity price for secondary reserve (24)

Figure 14: Evolution of the average activated energy price for secondary reserve (25)

Figure 15: Evolution of the average daily spread between negative and positive secondary reserve activated energy (26)