Third Standalone Batteries’ Auction: Competitive Bidding Processes for granting investment and operational subsidies to electric energy storage systems

September 25, 2024

Introduction

Recently, the ministerial decision No. ΥΠΕΝ/ΔΗΕ/97167/1640 (Government Gazette B’ 5269/18.09.2024) was issued, amending decision No. ΥΠΕΝ/ΔΗΕ/55948/1087 (Government Gazette B’ 3416/20.05.2023) regarding “Competitive Bidding Processes for granting investment and operational subsidies to electric energy storage systems in accordance with subparagraph 2A of paragraph 2 of article 143ΣΤ of Law 4001/2011 (A’ 179),” paving the way for the third standalone battery auction (the “Amendment”).

The key points of the Amendment are:

  • The deadline for completing the third competitive process and selecting supported stations is set for December 15, 2024.
  • The completion and operational deadlines for the first and second competitive processes remain December 31, 2025, while for the third process, it is set for April 30, 2026. The deadline for submitting requests to the Operator of the Electricity Market for activating grid connections is September 30, 2025, for the first two processes and January 31, 2026, for the third.
  • The total auctioned capacity through the three competitive bidding processes amounts to nine hundred (900) MW of maximum injection capacity from supported storage stations, reduced from one thousand (1,000) MW prior to the amendment.
  • A new addition specifies that eligible areas are exclusively the Region of Western Macedonia and the Municipality of Megalopolis, rather than all areas of the Just Development Transition Program. For the Municipality of Megalopolis, the total awarded capacity cannot exceed 50 MW.
  • A maximum limit on awarded capacity per participant is set at 25% of the total auctioned capacity across all three auctions, amounting to a cap of 225 MW, reflecting the reduction from 1,000 MW to 900 MW, and it is expressly referred that the above cap applies in conjunction with (a) the maximum cap of 100 MW in respect to the participation power of each station to each competitive process, (b) the maximum cap of participation power of each station to each competitive process which has been set to 25% of the auctioned capacity and (c) the maximum cap of awarded capacity per participant for A’ and B’  competitive process on an aggregated basis which amounts to 100MW.
  • The maximum allowable bid price for the third competitive process is set at €145,000/MW/year.
  • It is added that stations participating in the third competitive process must possess a valid storage license.
  • It is established that holders of supported stations in the third competitive process will receive an investment subsidy of €200,000/MW. Additionally, the amount for the Performance Guarantee Letter for the station is set at €200,000/MW.

After the Amendment

Following the issuance of the Amendment, the decision from the Regulatory Authority for Energy, Waste & Waters (Ρ.Α.Α.Ε.Υ.) is now awaited to announce the third Competitive Process.

 

Peggy Bozou

Attorney at Law
LLB, Law School, University of Athens (EKPA)
LLM, Civil Law, Law School, University of Athens (EKPA)
ΜSc in Energy: Strategy, Law & Economics, Piraeus University

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