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Long-Duration Energy Storage (LDES): Regulatory environment and business models in Germany, Spain, France, Italy, and Great Britain

View our latest report on the regulatory framework and business models for LDES technologies in Germany, France, Spain, Italy, and Great Britain, commissioned by the German Federal Agency for Disruptive Innovation (SPRIND).

Key topics discussed in the report:

  • Motivations for long-duration energy storage
  • Functionality of liberalised electricity markets
  • Regulatory implementation
  • Potential business cases
  • Regulatory best practices to support the deployment of LDES

The report provides a comprehensive overview of country-specific power markets and relevant regulatory aspects. It introduces potential business models for LDES technologies and evaluates the potential combinations of multiple applications. Our thorough assessment of LDES business models considers overall market development, and a comparison with lithium-ion batteries, providing you with crucial market analysis. The report also provides policy and regulatory best practices for each of the business models, helping you make crucial market entry decisions.

Highlights and key findings include:

  • Among the potential business models for LDES, stand-alone grid-scale storage, and co-location with renewables assets are currently the most promising
  • Market interest for LDES applications varies between the countries considered in the study; projects have already been announced or are under development in Italy, Spain, and the UK
  • Legislators and regulators can facilitate the deployment of LDES with the right policy measures and market design choices. The following points summarise our analysis of regulatory best practices across the 5 countries to support the deployment of LDES:
    • In Italy and Germany, energy storage facilities are exempt from grid charges, levies, and taxes
    • Italy introduced an energy storage strategy, with concrete deployment targets differentiated by storage duration
    • Great Britain and Italy have implemented a capacity remuneration mechanism with long-term contracts that provide revenue stability
    • Great Britain liberalised ancillary services through market-based procurement to open up new revenue opportunities for energy storage
    • Italy introduced specific tender schemes for energy storage facilities with longer storage durations

Click the link below to access the full report:

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