The year 2024 was a pivotal year for the development of storage: after strong growth in stationary storage deployment during 2022-2023 (>150 MW installed in the first three quarters of 2022, >200 MW in the first three quarters of 2023), 2024 saw a relative pause: only ~110 MW of capacity were added in the first three quarters, resulting in an installed base of ~930 MW as of September 1 (about two-thirds of which are connected to the distribution network).
This “pause” masked a strong development dynamic, as market conditions improved over the year:
- The opening of the secondary reserve (aFFR) at the end of June 2024 revealed high prices (>€60/MWcertified/h from June to September 2024 for capacity reservation).
- 2024 was marked by significant opportunities for energy market arbitrage (over 500 hours with zero or negative prices on the spot market by September 2024, compared to less than 200 in 2023).
- Flexibility tenders launched by network operators expanded and began to represent significant opportunities, with 46 MW awarded by Enedis (compared to less than 5 MW in 2023).
- Lastly, battery CAPEX fell sharply in 2024 (by more than 20% for a 2-hour battery) compared to the previous year, making business models more attractive.
The pipeline of projects awaiting grid connection grew significantly, from ~4 GW in early September 2023 (including 3.7 GW requesting connection to the RTE transmission grid) to ~8.8 GW a year later (including 8 GW on RTE).
These developments raise several issues that will require close attention in 2025:
- The evolution of prices on aFRR and the potential “spillover effects” on FCR remuneration and energy markets (tertiary reserves, intraday, spot).
- Changes in the types of projects being developed, both in terms of endurance (will the new 2-hour “standard” remain the norm?) and locations (e.g., development of “behind-the-meter” capacities, especially behind consumption sites with available connections and additional value streams).
- The impact of optimized connection requests (representing nearly a quarter of the queued capacities) on development speed, availability, and the revenues that assets can capture.
- The characteristics and opportunities provided by the new capacity mechanism, set to come into force in 2026 and whose design is expected to be finalized in the coming months.
- The evolution of storage monetization sources, whether through increased value from imbalances, price volatility in wholesale markets driven by renewable growth, or the emergence of PV + storage PPAs.
E-CUBE has developed strong expertise in Energy storage through its recent projects and the experience of its consultants. We would be delighted to discuss these market perspectives and opportunities with you. Feel free to contact our experts below to arrange a discussion on the topic.
