AnsweredAssumed Answered

How can we make commercial energy storage profitable?

Question asked by Joshua Leupolz Partner on 24-Feb-2017
Latest reply on 28-Feb-2017 by Jorn Reniers

Assuming I want to buy a battery to make profit by buying and selling electricity due to changes in the whole sale market. Regarding the case that no electricity is self consumed, or that the battery is used for ancillary service capacity. So very simple revenue model: buy cheap electricity and sell it when electricity prices are higher, the difference is the revenue.

The problem in this case is that I have to pay additional to the whole sale market price a fee for transmission and taxes, when I sell the electricity again, I get only the whole sale price or I have to pay even again a fee to introduce my electricity. With this regulations nowadays it is very difficult to make any revenue and for sure not enough to compensate the investment cost for the battery.

I think it would be fair to be exempt from the transmission fee, since I would stabilize the grid by my behavior, and I think I should be also exempt from taxes, because I would decrease the average electricity prices and support the the grid.

I guess pumped storage power plants are exempted from the mentioned costs.

Now to my question:

Does someone of you have any information about how regulations or plans for new regulations are to make energy storage more attractive specially for smaller users. Also if you have a suggestion where I could find these information I would be glad, special focus on central Europe, but also information about other countries would make me happy.

Thank you.