Investors looking to install energy storage units in Greece are currently exploring market participation details and options and how these could secure feasibility as they prepare for a first auction for standalone batteries, expected to take place within the next few months.
Participants will be offered 50 percent of a total capacity of 900 to 1,000 MW currently allotted to energy storage units. Looking further ahead, the country’s updated National Energy and Climate Plan envisages the installation of 5.6 GW in batteries for energy storage over the next ten years.
For the time being, it appears investors will need to develop their energy storage projects without state support, meaning their respective business models will rely entirely on funds generated through the market.
These revenues will, on the one hand, be generated by storage facility contributions to daily coverage of demand, and on the other, remuneration that could be received for provision of a range of services, including grid congestion relief and balancing.
Indeed, in cases of markets such as the UK and Ireland, serving as models for the domestic market, the provision of such services constitute the main source of income for energy storage units, which explains concerns raised by investors in Greece and why they are seeking clarification on financial details in advance before making investment decisions.
It should be noted, however, that in any case, the establishment of capacity mechanisms is considered necessary for the viability of energy storage projects.