Battery Energy Storage Auction – Greece 2023

Greece has released its first battery energy storage auction for 400 MW. This is the first competitive process for energy storage in Southeastern Europe. Two more rounds are expected in 2023.

The Greek Regulatory Authority for Waste, Energy and Water (RAWEW) has published the country’s first round of battery storage auctions. It will amount to a 400 MW capacity. RAWEW set a price ceiling in the bidding for 10-year contracts for difference at EUR 115,000 per MW per year. The minimum coverage is 100%. But if the bids do not meet the capacity required by the auction, the residual will be integrated in the next round.

The selected investors will be eligible for a EUR 200,000 per MW grant for the realization of their projects. However, each project must not exceed 100 MW.

RAWEW said it would accept bids up until July 10. Beyond this date, the authority will examine the submissions up until August 9.

What are the General Requirements?

In order to participate in the auction, developers must submit:

• a letter of guarantee for EUR 35,000 per project
• a letter for EUR 250,000 per MW for its timely completion
• EUR 200,000 per MW for the operation of their installation

Beyond the 100 MW limit per project, the RAWEW requires:

• a minimum of 1 MW in planned operating power
• the ability to store at least 2 MWh per MW
• connection to the Greek transmission grid
• the systems must be operative by the end of 2025

Other Battery Energy Storage Auctions in 2023

Greece has planned two additional battery storage auctions for thsi year. They will be held in third and fourth quarter of 2023. Each one will have a capacity equal to 300 MW. This will bring the annual auctioned capacity to a total of 1 GW.

An exceptional opportunity for investors

The Greek energy system relies on a significant portion of renewables, but lacks operational energy storage to compensate for their variability. As a result, transmission and distribution grids are heavily congested. This increases the risk of disruptions and blackouts.

Without enhancing the grid’s flexibility, adding more renewable energy installations would lead to issues in terms of electricity security. Therefore, the lack of storage solutions prevents further deployment of renewables.

All these factors make Greece a market in critical need for battery energy storage systems.