Energy storage large order framework agreement

How much money can a storage power purchase agreement generate?

For high-price scenarios, storage PPAs can generate 180 MEUR/year in 2030 in Europe We propose a contractual setup, the proxy storage power purchase agreement (PPA), to foster the deployment of energy storage technologies. We define a threshold price below which the PPA becomes financially attractive for PPA buyers.

What is a proxy storage power purchase agreement (PPA)?

We propose a contractual setup, the proxy storage power purchase agreement (PPA), to foster the deployment of energy storage technologies. We define a threshold price below which the PPA becomes financially attractive for PPA buyers. We compute the threshold price for several storage technologies and configurations, in seven European countries.

What are the threshold prices for grid-charge energy storage?

For grid-charge energy storage, threshold prices above 50 €/MWh are obtained in Spain and Denmark, and threshold prices above 60 €/MWh are obtained in Finland and Sweden. In the event that electricity prices remain as high and volatile as in 2021, proxy storage PPAs may enable a faster deployment of storage technologies.

Are high storage PPA threshold prices associated with lower storage-to-generation capacity ratios?

Therefore, high storage PPA threshold prices are associated with lower storage-to-generation capacity ratios. The purple lines in Figure 5 show the energy storage usage as a function of the capacity ratio.

What are the contractual structures for storage PPAs?

Three contractual structures for storage PPAs are currently available: This grants the buyer the right to control the storage and to operate it on multiple markets such as ancillary services, intraday arbitrage, and day-ahead market arbitrage.

How many cycles can a grid-charged storage perform a day?

When changing the allowed number of cycles of the grid-charged storage from 1 to 0.5, the threshold price increases from 24 to 30 €/MWh, though the absolute revenue decreases by 1 − 0.5 30 24 = 37 %. Therefore, limiting the storage to perform a maximum of 0.5 cycles per day significantly constrains storage revenues.