New Tool to Assess Business Case of Grid-Connected Storage Projects

Together with the TSO TenneT, Guidehouse developed an interactive tool to assess the business case of grid-connected storage projects. The tool enables the user to gain insights into, and compare different storage technologies, financing options, and markets to commercialize the flexibility.

Grid-connected energy storage, e.g. batteries or pumped hydro, play a crucial role in increasing flexibility in the grid and provide opportunities in wholesale and reserve markets.

The model-based tool assesses the maximum revenues through dispatch optimization in different markets and provides detailed analysis of the storage project’s net present value as well as cash flows throughout the project lifetime.

Aside from technical aspects, frequent questions by market participants concern the handling of taxes and levies for storage projects as well as potential revenue streams. The tool, which TenneT provides free of charge, aims to support stakeholders in their understanding of a storage project’s business case, to foster transparency and encourage investment into storage projects. Last year, the tool had been published for the Dutch energy market already. Together with the TSO, Guidehouse has now adapted the tool for the German energy market and respective regulation.

Download the tool (in German) at Tennet.eu