Price Differences in Different Countries And Their Impact On Energy Storage Projects

In different European countries, the peak-valley price difference varies, and the impact on energy storage projects is also different. In the UK, the main revenue of its energy storage market comes from ancillary services, but with the change of the peak-valley price difference, the proportion of energy storage participating in electricity price arbitrage is gradually increasing. In Spain, Italy and other countries, although the current proportion of electricity price arbitrage income of energy storage projects is relatively high, it still cannot fully cover the investment cost. However, with the further expansion of the peak-valley price difference and the support of relevant policies, the economic efficiency of energy storage projects in these countries is expected to improve.

 

For example, Italy has implemented a capacity market mechanism to support energy storage revenue. According to the Italian capacity market auction plan in 2022, it is expected that 1.1GW/6.6GWh of battery energy storage systems will be added in 2024. In June 2023, Italian regulators approved new auction rules for grid-scale energy storage, allowing terna (transmission system operator) to conduct large-scale auctions for battery energy storage systems. The first auction will be held at the end of 2023 or the beginning of 2024. This series of measures will promote the development of energy storage projects in Italy. As the peak-valley price difference profit model gradually improves, the installed capacity of the Italian energy storage market is expected to show explosive growth.