Canada Infrastructure Bank loan enables Indigenous communities to hold stake in energy storage projects

CIB announced the investment in mid-February, marking the first commitment to date under the bank’s Indigenous Equity Initiative. The scheme aims to enable First Nation, Métis, and Inuit communities to hold ownership stakes in projects that CIB is also investing in.
“ESC is thrilled the CIB’s first Indigenous Equity Initiative loan is part of the largest battery storage investment in Atlantic Canada to date,” Rangooni told Energy-Storage.news yesterday.
“Equitable partnerships with indigenous communities and securing their active participation in the modernisation of Canada’s grids, including the integration of energy storage, will be key to achieving Canada’s net-zero goals and ensuring a sustainable future for all Canadians.”
CA$130 million to come from federal government
The projects will be constructed in the communities of White Rock, Bridgewater and Waverley, each of 50MW and 4-hour duration (200MWh).
They will be built by Nova Scotia Power (NS Power), the main electricity supplier to the province. NS Power is state-regulated and not state-owned, being a subsidiary of shareholder-owned listed company Emera.
NS Power will get a loan of up to CA$120.2 million from CIB and a partnership between 13 First Nation Mi’kmaw communities called Wskijinu’k Mtmo’taqnuow Agency (WMA), which is working with the energy provider, will get an equity loan worth up to CA$18 million.
CIB said the Indigenous Equity Initiative lending will finance 90% of the Indigenous participation in the portfolio projects, contributing to the bank’s target of financing at least CA$1 billion-worth of projects that will benefit Indigenous communities in the country.
The initiative, launched in November last year, offers loans of between CA$5 million to CA$100 million per project.
While it may be CIB’s first loan to enable Indigenous participation in battery energy storage system (BESS) ownership, Canada’s biggest BESS project in development so far, the 250MW/1,000MWh Oneida project in Ontario, is being co-developed by the Six Nations of the Grand River First Nations community, on whose land it will be built.
NS Power has also secured a further CA$130 million towards the proposed project through Natural Resources Canada, the federal government department which has a remit that includes energy, minerals, and natural resources.     
Energy storage developments in Canada have largely been focused on its two biggest provinces, Ontario and Alberta, to date. However, last summer Nova Scotia lawmakers determined that electricity storage will be a key pillar of the province’s transition from coal-fired power generation.
NS Power BESS plan suitable, Clean Energy Task Force finds
Among the regions of Canada most dependent on coal, national statistics showed that in 2019, 51% of Nova Scotia’s power generation came from the environmentally unfriendly fuel source.
The provincial Environmental Goals and Climate Change Reduction Act, signed into law in 2021, demands that usage cease by 2030. In October 2023, the Nova Scotian government said it would deploy between 300MW and 400MW of battery energy storage by 2030 in line with its clean energy plan. The government said this would help it harness the region’s abundant wind resources.
Patrick Bateman, an independent consultant affiliated with Energy Storage Canada, offered some more recent policy context to Energy-Storage.news in a commentary yesterday.
Nova Scotia’s Clean Electricity Solutions Task Force (CESTF), set up to implement goals including the coal phaseout and getting the province to 80% renewable energy by 2030, has recommended setting up an independent energy system operator (IESO), Bateman said.
The Nova Scotia IESO (NSIESO) would have duties that included removing any bias in system planning, interconnection studies, or bias towards NS Power and Emera’s commercial interests, and implementing better and more efficient interconnection procedures.
The IESO would take on roles like integrated energy system planning, operating the grid and administering markets, in a similar way to how respective organisations in Ontario and Alberta take care of the electricity system in those provinces.
More specifically with regard to energy storage, the NSIESO would oversee the implementation of battery storage technology. The Task Force said that the plans to deploy up to 400MW of storage enjoyed “broad-based support”.
“The interconnection of these projects will provide system wide benefits, including: fast response for system disturbance; short term reserves an energy time shifting; and ongoing support of system balancing,” Task Force said in a statement.
“It is the view of the Task Force that the battery storage plans are being appropriately developed to serve the interests of Nova Scotians.”
Patrick Bateman was one of the interviewees for an article published in PV Tech Power (Vol.35) last year, focusing on how lessons learned in Canada’s two leading provinces, which account for more than 80% of the country’s announced energy storage deployments, could be transferred or otherwise learned from in other regions, including Nova Scotia and other Atlantic Canadian provinces.  
Energy-Storage.news’ publisher Solar Media will host the 6th Energy Storage Summit USA, 19-20 March 2024 in Austin, Texas. Featuring a packed programme of panels, presentations and fireside chats from industry leaders focusing on accelerating the market for energy storage across the country. ESC’s Justin Rangooni will be among the speakers. For more information, go to the website.

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Spain and Netherlands launch subsidies for battery and PV manufacturing

Spain
The Spanish Ministry of Ecological Transition (MITECO) has opened a new incentive scheme for renewables and storage manufacturing to a public consultation.
The first round of the scheme will allocate over €750 million (US$811 million) based on the necessities outlined in the information gathered during the public consultation. The funds will be provided through Spain’s recovery and resilience plan (PRTR) and are aimed to incentivise the production of equipment and components for solar panels, batteries and electrolysers, among other technologies. According to MITECO, future rounds could add other aspects of the supply chain.
One of the objectives of the scheme is to strengthen Spain’s domestic manufacturing and its strategic autonomy, as well as Europe’s.
Teresa Ribera, the Spanish minister of ecological transition, said the goal is not just to change the ‘colour’ of the molecules or electrons to green but also: “We want capital goods to be produced in Spain.”
The Institute for Energy Savings and Diversification (IDAE in Spanish) will oversee the scheme and the financial aid, which would include both existing and new projects. For existing projects, this includes the expansion of the annual capacity by adding a new production line or improving existing lines with equipment not previously in use. However, only projects that have not been started prior to the auction will be accepted.
The public consultation is open until 15 March and more details can be accessed here (in Spanish).
Netherlands
The Netherlands has launched a new subsidy aimed at supporting domestic manufacturing of solar panels, batteries and electrolysers.
Published earlier this month by the Netherlands Enterprise Agency (RVO in Dutch), the new Manufacturing Industry Investment Subsidy Climate Neutral Economy (IMKE) will support companies in the Dutch manufacturing industry for solar panels, batteries and electrolysers for hydrogen production.
This new subsidy aims to reduce the Netherlands’ dependence on other countries to procure these components.
A consultation has been opened until 3 March 2024 and can be accessed here (in Dutch). The consultation aims to collect information regarding the conditions of the subsidy, its duration and the amount of the subsidy, among others.
The announcement of both schemes comes only weeks after the European Parliament and the EU Council agreed on new regulations to boost the region’s solar manufacturing industry with the Net Zero Industry Act (NZIA).
Full details of the NZIA are yet to be disclosed, but among the criteria implemented is a 50% quota on solar capacity auctioned by member states for which modules can be sourced from a single country per year.
The full original versions of these two articles can be read on PV Tech: Spain (here) and Netherlands (here).

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Europe: Rising battery storage markets playing catch-up to the UK’s lead

While the UK is a standout leader of the continent in terms of deployment figures, and arguably also sophistication of business models – as pointed out in a new study by Aurora Energy Research – tracking the European market is also becoming much more interesting, Darmani said.
“There was maybe not as much to speak about a couple of years ago on the European energy storage market, but then it’s definitely changing,” the analyst said, referring to media interest in the US as well as the UK.
“I think the scale is really taking off in Europe, and that’s a good thing.”
Previously, there had really only been one major talking point across continental Europe: the early opportunities for batteries to provide ancillary services and how quickly those would saturate. In light of falling costs making battery storage more viable and new market opportunities opening up, those conversations are now changing.
Conversely, while the UK is the biggest European market so far, with around 4GW of installed battery energy storage system (BESS) capacity, the sector’s maturation means that the opportunities and business case for storage on the GB grid (including England, Scotland, and Wales, but excluding Northern Ireland, which shares its grid with the Republic of Ireland), are well understood.
So, there are obviously a lot of discussions around the UK, but beyond that, Wood Mackenzie (WoodMac) clients want to know which other markets present opportunities within Europe.
“In Europe, outside the UK, we were always interested in Germany and Spain. Germany, we already see that the market is taking off, based on our analysis and what we hear from clients,” Darmani said.
A big difference between Europe’s most established market and Germany is that the UK, as Energy-Storage.news readers will likely know, is a market growing comfortable with merchant opportunities, with stacking revenues from the different available streams to create a business case.
With Germany however, it is still more the case that clients want to know where the contracted revenues will come from, when tenders will take place and what the criteria are for eligibility, or perhaps when newer opportunities will emerge, such as the capacity market the German government is currently considering introducing.
Curtailment of renewables among major drivers across Europe
Ancillary services markets are still open in Germany, with storage able to participate in primary Frequency Control Reserve (FCR) markets, where that isn’t yet the case in Spain. Germany’s electricity network experiences “good volatility” that BESS assets can help correct, and growing shares of renewable energy will contribute to that need.
At the same time, curtailment is seeing literal terawatt-hours of renewable energy being generated and then wasted at negative prices and enormous costs to the German public, which again, provides a fundamental driver for energy storage, Darmani said.
Spain, meanwhile, has plenty of room to grow, with both its grid-scale and residential markets fairly small. The drivers are different but still fundamental to the smooth and stable operation of the grid.
“Spain is not benefiting from interconnections to a neighbouring country like Germany [is],” due to its location on the Iberian peninsula, with only France offering meaningful import and export volumes of power across the border.
“They have a huge share of solar power installed there [in Spain]. We saw on some days last year that the curtailment rate of solar hit 45%, which is significant. At the same time, they have a [national] energy storage target of 20GW by 2030,” Darmani said.
However, so far there isn’t investment happening in Spain because the market signals, designed for a pre-battery storage era, are not there. Darmani cited again the example of ancillary services markets being closed off to energy storage, meaning there are few opportunities to provide batteries with contracted revenues in Spain.
A few weeks ago, Spain’s government held a tender for energy storage under the national PERTE scheme for economic recovery and resilience. A total of 880MW/1,809MWh was awarded to companies, including Iberdrola and Naturgy, with the majority of awards in Spain’s central provinces.
Participants were looking at and waiting for that tender for a “very long time,” the analyst said, and that also tells you that bidders realised they would have no near-term opportunities to deploy energy storage in the country without it.
“The prices of the bids were very, very different from one another in the market, so that tells you also that there was a different risk appetite of the developers that were going into that market,” Darmani said.
Another takeaway is that most of the projects were co-located with solar PV, and the WoodMac analyst believes that will be a significant market segment for Spain in the years to come.
Attendees at last week’s summit, which was hosted by our publisher Solar Media, heard about the appeal and opportunities for energy storage in other rising European markets.
Country-specific sessions were held on Poland, Italy and Germany, and in a panel discussion on EU Electricity Market Design reform, Doriana Forleo, executive director of the Energy Storage Coalition, highlighted that pan-European opportunities will become a necessity due to Europe’s need to integrate renewables onto its grids en masse in the next few years.

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Sungrow launching battery cell production as China’s BESS providers move upstream

“We are also trying to set up our own cell manufacturing soon because that is the really key thing to the storage of the energy and the long-term life of the BESS, and controlling quality. Next year we’re hoping to have a production line producing our own lithium-ion battery cells”.
James Li was speaking to the site at the Energy Storage Summit EU last week. Solar PV giant Trina Storage launched its latest BESS solution which uses in-house manufactured lithium-ion cells at the event.
The moves are part of a wider industry trend of China’s BESS providers moving upstream and manufacturing their own battery cells to integrate into BESS systems. The trend has been noted previously by industry commentators including BloombergNEF’s head of energy storage Yayoi Sekine when it launched its BESS Tier 1 list in January (Premium access).
Downward vertical integration has already happened, with battery manufacturing companies like CATL, BYD and LG Energy Solution launching their own integrated BESS products. Sungrow, Huawei and BYD were in the top five BESS providers by 2022 deployments according to Wood Mackenzie.
Other benefits of using in-house cells in BESS solutions to what Li mentioned include a more integrated design potentially allowing for better mitigation of potential fire safety risks.
It also allows providers to offer an energy density superior to pure-play system integrators, whose modular design allows for optionality but at the expense of energy density. Energy density is becoming key for the industry.

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Masdar Arlington, RPC and TagEnergy progress UK BESS projects totalling 162MW

It was a big focus of last week’s Energy Storage Summit event in London, with topics ranging from falling revenues and co-location business models to the optimal size for larger-scale projects.
Masdar Arlington Energy begins building two UK BESS units
Developer-operator Masdar Arlington Energy has started construction on two BESS projects with a combined capacity of 55MW, one in Rochdale and one in Stockport.
The announcement follows Masdar’s announcement last year that it plans to invest £1 billion (US$1.26 billion) in the UK BESS market. The UAE state-owned renewable energy company acquired Arlington Energy in late 2022, which it renamed Masdar Arlington Energy.
The energy management system arm of utility Octopus Energy, Kraken Flex, will optimise Masdar Arlington Energy’s UK BESS pipeline, which it claims is 3GWh.
Masdar didn’t say when the two projects would come online or the MWh size of the projects, though most being built in the UK today are 2-hour systems.
Renewable Power Capital acquires construction-ready 57MW project
Renewable energy investor-operator Renewable Power Capital (RPC) has acquired its first ready-to-build (RTB) project in the UK. The project has a power rating of 57MW at the grid connection point, though, like Masdar, RPC didn’t reveal the MWh capacity.
It didn’t detail where the project is but said in its announcement (27 February) that construction would start imminently and that the project would come online in summer 2025.
It follows development partnerships that RPC has agreed with developers Greenfield (500MW) and Elmya Energy (4GW).
TagEnergy reaches financial close on a 49.9MW project in Scotland
Renewable energy investor-operator TagEnergy has reached financial close on its 49.9MW/99.8MWh Pitkevy facility in Fife, Scotland. Pitkevy is TagEnergy’s first split-contract project, with Tesla providing the Megapack 2 XL battery systems and RJ McLeod completing site works and battery container installation.
Financed by a non-recourse green loan package on a fully merchant basis, except for Capacity Market revenues, the package was originally secured to finance the construction and operation of TagEnergy’s Lakeside Battery Energy Storage System (BESS) project. This is the sixth UK battery storage facility in the company’s portfolio.
Backed by Santander UK, Rabobank, and Triple Point, the finance package includes an uncommitted accordion facility that allows TagEnergy to include the Pitkevy site in the funding structure.
The TagEnergy article originally appeared on Solar Power Portal.

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Rimac Energy on entering ESS market with SineStack: ‘the Rimac of performance, but not of price’

Rimac Energy is the stationary energy storage arm of Rimac Automobili, the Croatia-headquartered high-performance electric vehicle (EV) technology company which also owns a majority interest in legacy supercar brand Bugatti.
Rimac Energy announced its plans to enter the ESS market in Spring 2023 and first presented its SineStack battery energy storage system (BESS) product at our publisher Solar Media’s Energy Storage Summit Central Eastern Europe (CEE) in September 2023, officially launching it a month later.
Rimac Energy positions itself as ‘European’ player
“We are establishing ourselves as the leading European player, with a European product, European software, European manufacturing and a majority European supply chain,” Laublaettner says.
The firm’s first two projects for Croatian renewable energy developer and operator ENNA will be built at Rimac’s UK location while a larger manufacturing facility is being developed at its Croatia hub.
The first two projects will together total a ‘single-digit’ MWh figure and will go online in the second half of 2024. Laublaettner: “We’ll use these projects to prove the technology and build a track record. We’ve finished with the technological iterations to the Sinestack for the product we are launching.”
The Sinestack’s key differentiating feature it its distributed inverter topology architecture where the inverter capability is distributed amongst all of the modules giving independent control over every 18 cells in each 790kWh unit.
“We’re establishing our manufacturing lines currently, which will soon be multi-GWh and we intend to be one of Europe’s biggest manufacturers of ESS by 2030 with a significant double-digit GWh production figure.”
The company is targeting the supplying to the grid-scale, commercial and industrial (C&I) and battery-integrated EV charging market segments.
Laublaettne adds that it is hard to say who is the largest BESS manufacturer in Europe today as the capacity figures are generally quite hidden.
The projects with ENNA are in Germany and Croatia and are part of a 1GWh framework agreement between the two companies.
Staying competitive in a market with falling prices
We then ask Laublaettner what Rimac’s approach to pricing will be. Its parent company’s Nevera supercar retails for around €2 million (US$2.2 million), 30-40x the average price of a new electric vehicle (EV). Laublaettner is clear that the ESS market requires a vastly different approach.
“We don’t position ourselves as the Bugatti or the Rimac on the stationary side, we know competitive pricing is absolutely key. The performance will be the Rimac of the market, but not the pricing,” he says.
“The key thing is to have a strong supply chain and to have contracts in place that will adjust with pricing adjustments. Having the scale and ability to control the product vertically leaves us in a space where we can offer highly competitive pricing.”
Average prices in the global BESS market have fallen dramatically since the highs of 2022, with Clean Energy Associates (CEA) and system integrator NHOA Energy both saying they fell around 20% in 2023, while CEA estimates another 20% fall in 2024 (for US customers). One driver of this is the fall in lithium carbonate prices but increasing competition from Chinese companies on the global stage is also a major factor.
Battery cell procurement: China and Europe both options
A big part of the question around pricing is from where and whom Rimac procures its battery cells, which it is not building itself. The company has claimed its background in high-performance EVs means it is well-suited to extracting maximum performance from a given set of cells.
While it is presenting itself as a European company with a European supply chain, China is still the only place to go to procure lithium-ion battery cells at scale, although Europe is trying to develop its own lithium-ion battery ecosystem. Laublaettner says Rimac will offer systems with both Europe and China-made cells depending on the needs of the customer.
“At the moment, if someone wants competitive pricing the cell will come from China. We have ensured all potential suppliers of our cells will have the option for full European sourcing by 2027, and we also do see new European manufacturers but then it’s the question of the customer preferences: are they willing to pay more to have a European cell or just go for the cheaper one? That is a discussion that will continue until there is a high volume of production in Europe.”
Laublaettner also discusses how flexible the company’s SineStack solution is in terms of using different cells. Optionality is seen as key by many of the key incumbent system integrators in the market.
Laublaettner: “In general, our technology is cell-agnostic as long as the format is the same, we can use cells from different suppliers. The key thing is we look at multi-sourcing but of the same format – we’ve been working closely with leading cell suppliers and think we’ve got some really impressive cells both technically and comercially. Our solutions are all LFP right now, but we also have compatibility with Na-Ion (sodium-ion).
“The unique electrical architecture of our system, sophisticated state detection (such as state of charge estimation), and our battery optimisation software helps us extract more energy and more lifetime out of a given set of cells.”

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Thermal energy storage startup Antora raises US$150 million for industrial decarbonisation

Antora claims that not only can TPV cells be mass-produced, but that their efficiency for converting heat into electricity exceeds 40%. Meanwhile, the cells are lightweight, solid-state devices with no moving parts, and their modular design means efficiency and cost are independent of scale.
The heat component can reach temperatures in excess of 1800°C, which can meet the requirements of sectors such as cement and steel production, often named among the ‘hard-to-abate’ industries for emissions.
Industrial activities account for around 30% of global emissions, making them the single biggest contributor, with about half of that represented by industrial heat.
According to a report from the global trade association Long Duration Energy Storage Council (LDES Council) published late last year, the application of renewable energy-generated heat and electricity storage to the industrial sector could reduce industrial emissions by roughly two-thirds. A report commissioned by the LDES Council a year before in 2022 focused on the potential of thermal energy storage to effectively provide several hours of storage capacity, which it described as being crucial for global decarbonisation.
Antora joins a growing roster of global thermal energy storage companies seeking to deploy their solutions into the sector, most of which claim their technologies can deliver energy and power at costs competitive with lithium-ion, while providing heat in particular more effectively than electrochemical batteries.
Big name investors join Breakthrough, Grok
The Series B round, combined with a 2022 Series A, brings the startup’s total attracted investment to more than US$230 million. The company first featured in Energy-Storage.news during that round, with Bill Gates-founded sustainability-focused venture capital group Breakthrough Energy Ventures among investors. It also received some early-stage support from the US government and the state of California.
The latest Series B was led by Decarbonization Partners, formed by BlackRock and Singapore-headquartered asset manager Temasek. BlackRock has to date invested in a number of downstream battery storage project developers, while Temasek’s involvements in the space have included investment in US ‘multi-day’ battery startup Form Energy, and lithium iron phosphate (LFP) manufacturer Our Next Energy (ONE), also based in the US.
Also taking part in the round were new investors, including a subsidiary of NextEra Energy Resources and the Nature Conservancy, along with existing investors including Breakthrough Energy, BHP Ventures and Grok Ventures.
The investment will allow Antora Energy to scale up its manufacturing and commercial deployments, with the company having begun producing a commercially available thermal battery product as well as announcing the development of a California factory to produce them at scale.
Initial units are expected to roll off the production line at the 50,000-square-foot factory later this year. Antora CEO and co-founder Andrew Ponec claimed the Series B’s closing represented an investment in “US jobs, manufacturing, and leadership in the clean energy transition,” as well as in the company itself.
Energy-Storage.news’ publisher Solar Media will host the 6th Energy Storage Summit USA, 19-20 March 2024 in Austin, Texas. Featuring a packed programme of panels, presentations and fireside chats from industry leaders focusing on accelerating the market for energy storage across the country. For more information, go to the website.

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‘Battery developers were biggest winners’ in UK’s T-1 Capacity Market auction last week

As reported last week in some detail by our UK-based sister site Current, this was 40% lower than prices at clearing in the previous year’s auction.
Battery energy storage system (BESS) assets got 8.58% of that total, with 655.16MW of bids successful, and pumped hydro energy storage (PHES) assets 2.43%, or 185.38MW.
While that was therefore dwarfed by the 38.53% of capacity won by gas-fired generation (around 3GW) and 2.76GW won by nuclear (36.22%), battery storage was the leader among renewables and non-thermal generation technologies.
“The biggest winners in this week’s auction were the large number of battery developers who will be able to supply power to the UK next year when the system is short,” Sam Hollister, head of energy economics and finance at energy transition research and consultancy group LCP Delta said after publication of results.
Coupled with this week’s T-4 auction, which will secure capacity four years out from delivery year, the overall cost of the two Capacity Market solicitations could be around £3 billion of taxpayers’ money, Hollister said.
With the T-1 costing about £273 million in contracts, the T-4 could cost about £2.6 billion, the economist said, with 44GW of generation targeted.
The T-4 auction is expected to clear today and the industry’s expectation is that prices will be much higher than at T-1. Hollister said T-4 prices could exceed last year’s £63/kW/yr, which was a record-breaking level at the time.
According to the LCP Delta analyst, EDF’s nuclear fleet was also a winner, getting lifetime extensions into 2025.
“These winners were boosted by an underestimate of demand as well as some planned assets coming on line date either being delayed or cancelled entirely,” Hollister said.
“For [the] T-4 auction, we will have to wait and see the outcome, but we anticipate an increasingly tight scenario as power stations retire and electricity demand increases.”
T-1 Capacity Market prices ‘slightly above expectations’
Battery storage developers Harmony Energy Income Trust and Gresham House Energy Storage Fund, both commented after results came out that prices for T-1 had been slightly above expectations. As noted by Current, it was 40% below 2023’s equivalent, which cleared at £60/kW.
Gresham House Energy Storage Fund said it secured 1-year contracts across 13 of its fleet of lithium-ion BESS assets, with a total derated capacity of 90.491MW, noting in an update to shareholders that the contracts would be worth £3.2 million in additional revenue between October 2024 and September 2025.
The net asset value (NAV) benefit of the contracts will be recognised at the company’s next valuation date, 31 March 2024.
“We’re pleased with these results from the latest annual Capacity Market auction, as well as their expected positive contribution to our NAV from 31 March 2024,” Gresham House fund manager Ben Guest said.
Guest added that the flexibility of battery storage assets is “one of the great attributes” of the technology, with Gresham House able to “swiftly and remotely configure” its software to tap into a “wide range of potential revenues,” both contracted or merchant, without requiring any changes or updates on the hardware side of the systems.
Harmony Energy Income Trust also said the clearing prices were higher than the company had expected. Six of its assets made successful bids and would contribute around £1.7 million to its contracted revenues for the delivery period.
The fund said that two assets in its portfolio, Broadditch and Farnham, did not compete in the T-1 auction because they already have T-4 CM contracts in place, with delivery from October this year, over a 15-year term. Projects cannot hold two CM contracts over the same or overlapping delivery periods.
Gore Street Capital, the third of the UK’s listed funds dedicated to energy storage assets, got contracts for five assets.
As has been widely reported, the UK’s otherwise booming energy storage market has experienced a period of relatively low revenues over the past winter, impacting the share price of all three listed funds.
At last week’s Energy Storage Summit EU, held in London, UK, the audience heard that the CM revenues, while only comprising a minor portion of the BESS revenue stack for successful bidders, are an important way to get fixed revenues over contracted periods.
Head of capacity market policy at the UK government Department of Energy Security and Net Zero (DESNZ) Georgina Morris said that according to “various commentators,” CM revenues are becoming a more important part of the battery storage revenue stack.
The fact that the CM offers a guaranteed payment is thought to be especially welcome in today’s high interest-rate environment, Morris said. The DESNZ representative quoted figures from industry analysis group Modo Energy, which found that average UK BESS revenues of £51,000/MW/yr go up to around £61,000 with Capacity Market revenues factored in.
Elsewhere in Europe, Italy and France have both held capacity market auctions with battery storage assets eligible to take part, while Germany is thought to be considering a launch. As reported by Energy-Storage.news yesterday, in the US, more than 1,800MW of battery projects won contracts in the most recent ISO New England auction, a massive leap from just 5MW that cleared five years ago.    

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BayWa, Ampt and Fraunhofer complete ‘European-first’ wind-solar-flow battery hybrid project in Germany

A 690kWp solar PV array has been added to an existing 2MW wind turbine, which have been ‘DC-coupled’ meaning both sit behind the same inverter using Ampt’s string optimisers. The companies claimed this combination of solar PV, wind and storage is unique in Europe, and that the project would help Fraunhofer ICT’s campus towards climate-neutrality.
The 10MWh flow battery which completes the trio of technologies was also already operational although the announcement gave no additional details on it, be it technology provider or type of electrolyte used.
However, it appears to be the same flow battery that was deployed as part of Fraunhofer’s ‘RedoxWind’ demonstrator project, pictured further down.
According to a page on Fraunhofer’s website published in 2019, the RedoxWind project saw the deployment of a redox flow battery with a ‘final stage capacity’ of 2MW/20MWh connected directly to the DC circuit of a wind turbine at the Pfinztal campus. The aim of the project was to study the synergies and relationship between the wind plant and the energy storage system.
The RedoxWind project was publicly-funded with equal contribution from the State of Baden-Württemberg and the German Federal Ministry of Education and Research (BMBF). Energy-Storage.news has asked a spokesperson for BayWa r.e. to confirm it is the same project and will update this article if and when a response is received.
Flow batteries providers in the Germany, Austria and Switzerland (DACH) region include Austria-based vanadium redox flow battery (VRFB) company CellCube and Germany-based organic flow battery company CMBlu.
Ampt said its string optimisers use maximum power point tracking (MPPT) to recover energy losses due to voltage and technologies, as well as mitigate energy losses caused by share from surrounding buildings.
Andrea Grotzke, global director of energy solutions at BayWa r.e, commented: “The way we have added solar to the existing wind energy and battery storage system is unique, and in successfully completing this project we were able to further improve our own expertise and capabilities.”

The ‘RedoxWind’ redox flow battery at Fraunhofer ICT’s campus in Pfinztal, Germany. Image: Fraunhofer ICT.

Everdura to manufacture Invinity’s latest VRFB in Taiwan
In related news, VRFB company Invinity Energy Systems has announced that industrial group Everdura will start manufacturing Invinity’s latest product, Mistral, in Taiwan.
The pair have already been collaborating, with Everdura making a 15MWh order agreement in September 2022 which it then updated a year later to include Mistral, the latest generation of Invinity’s VRFB product.
Everdura is already Invinity’s reseller and will now manufacture Mistral VRFBs to fulfil orders, with 255MWh targeted over the next three years. Everdura will pay Invinity a royalty fee based on a material percentage of the sale price of Mistral products sold.
It will use Invinity’s existing supply chain and purchase cell stacks directly from the company, which will continue to be manufactured by Invinity at its production facilities in the UK and Canada.

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Kontrolmatik and China’s Harbin Electric to deploy ‘first 1GWh wind-plus-storage’ project in Turkey

Harbin will finance the project which is being launched by another Kontrolmatik subsidiary, Progresiva, and is expected to come online in 2025. It will be built in Tekirdağ, near Istanbul, and was described as a “US$300 million” investment in the announcement.
It will be co-located with wind power project, the first gigawatt-scale project of its kind in Turkey, Kontrolmatik said.
On Kontrolmatik’s website, the company describes Progresiva as an investor in energy projects and an energy trader. It also claims Progresiva has the first and only standalone energy storage unit in Turkey and will commission a 250MW/1,000MWh facility in 2024 (it’s not clear if this is a separate project to the one agreed with Harbin Electric – both are in the northwest Marmara region).
A signing ceremony for the Harbin project, in the capital Ankara, was attended by the local ambassador for China, Liu Shaobin, and Turkey’s vice president Cevdet Yılmaz.
Turkey is emerging as a regional hub for lithium-ion gigafactory and energy storage system (ESS) manufacturing and is also expected to see a ramp-up in domestic energy storage installations too.
At the end of 2023, the government awarded pre-licenses to co-located energy storage projects totalling 25.6GW of power and also imposed a 30% tax on lithium iron phosphate (LFP) batteries imported which, Energy-Storage.news was told by a local industry source, would boost the local upstream market (Premium access).
Kontrolmatik has an LFP gigafactory in Ankara which began production in 2022, building on the company’s existing ESS assembly facilities. The gigafactory was launched through subsidiary Pomega, which is also building a battery cell and ESS production facility in South Carolina, set to be completed in July 2024 – Energy-Storage.news spoke to Pomega’s US VP business development Louis Caso about it in March last year (Premium access).

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