Battery operators could see major profitability boosts in 2025, thanks to shifting grid incentives.
PARIS (AURORA ENERGY RESEARCH) —New analysis by Aurora Energy Research highlights how high production zones in France, where reduced grid charges encourage peak-hour charging, present opportunities for operators. The global energy markets analytics provider projects that batteries entering the market next year could achieve an IRR of 13.0%. The TURPE 7 optional tariff for batteries could push returns even higher—up to 14.9%—by slashing grid charges by 32.6 €/MWh during peak injection hours.
Aurora’s findings highlight that in areas with significant renewable energy production and low demand, the optional tariff provides incentives to consume electricity during periods of low demand. Conversely, in high-consumption areas, the optional tariff provides incentives to produce electricity during periods of high demand.
In high-production areas, batteries strategically located in injection zones and leveraging TURPE 7 could see an additional increase of 1.9% in IRR, transforming grid charges into a revenue source instead of a cost. In consumption areas, Aurora sees limited upside, as peak-hour revenues are not expected to offset higher import tariffs compared to the regular tariff structure.
CRE ‘s new TURPE 7 grid tariff structure will be in effect from 2025 to 2028. TURPE is the fee charged in France for utilising the electricity grid, and the new version introduces an optional tariff “injection soutirage” designed to incentivize standalone storage assets, such as batteries.
Julio Quintela Casal, France Research Product Manager at Aurora Energy Research, commented:
“TURPE 7 creates significant opportunities for strategically located battery storage, particularly in high-renewables, low-demand zones, by offering substantial grid charge discounts that can transform grid charges into revenue streams and boost profitability.”
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Established in 2013, Aurora Energy Research is a leading global provider of power market forecasting and analytics for critical investment and financing decisions. Headquartered in Oxford, we operate out of 15 offices worldwide covering Europe, North & South America, Asia, and Australia. Our comprehensive services include market outlook packages for energy industry participants, advisory support, and innovative software solutions. We foster diversity with a team of over 900 experts with backgrounds in energy, finance, and consulting, offering unparalleled expertise across power, renewables, storage, hydrogen, carbon, and fossil commodities. Our mission is to ease the global energy transition through widely trusted quantitative analysis and high-quality decision support.
