The Greek NECP has set very ambitious targets for Energy Storage with 5.6 GW up to 2030, a capacity much needed to integrate the very large amounts of variable RES and enhance system flexibility. The recent tender for storage systems, including the support for grants to the successful tenderers, through the Recovery and Resilience Fund, vastly contributes towards this direction and supports storage technologies. The ex-ante analysis and simulation of BESS indicate that the commercial evaluation of such systems has proven to be a complex exercise to resolve with a number of parameters to be taken into consideration and modelled.
The recent tender for BESS and the challenges for investors
In the weeks before the tender the spotlight was on the relative terms published by RAAEY. The Regulator received and answered hundreds of questions from interested BESS investors, however not shedding light on key issues of the tender, such as the grouping criteria for the BESS or the methodology for the ex-ante calculation of BESS market revenues. The candidate investors were called to submit their offers considering the importance of parameters such as the investment’s CAPEX and OPEX components and the possible impacts of the market participation incentive mechanism which compares market revenues between BESS belonging to the same group.
The closure of the first phase of the tender process and the relative experience gathered through performing various exercises regarding the technical and financial modelling of BESS allow us to extract some first conclusions regarding the basic characteristics, mechanics, and drivers of the Greek tender process. The final assessment of this initiative however will need to wait, until the results of all three tenders are published and the first BESS are constructed and become fully operational in the Greek electricity market.
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