redT signs exclusive deal for 700MWh of German grid projects

redT energy plc is pleased to announce that we have signed an exclusivity agreement with Energy System Management GmbH (ESM), a German energy development company part of WWF solar, to deliver two 40MWh grid-scale energy storage projects in Germany as a first phase deployment, with plans to roll out a further 690MWh of projects in the future.

An overview of the deal is below including video and podcast interviews with redT’s CEO Scott McGregor.

Initial phase: two 40MWh projects
The first phase projects are fully developed, ready for financing, with planning approval, grid connection and approval to supply Secondary Control Reserve (SCR) to the German and Austrian markets.

The initial 80MWh phase, representing 1,066 of redT’s Gen 3 tank units, is expected to begin construction in 2019, subject to financial close being reached.

Sole energy storage supplier
This agreement means that redT has been selected as the sole energy storage supplier for a portfolio of network reinforcement projects across Germany. Alongside providing the energy storage solution, we will also bring our knowledge and expertise in terms of operating the machines, to create maximum trading revenue returns for infrastructure investors looking to finance the project.

Flow machines displacing coal power stations for Secondary Control Reserve
The first projects will install a total of 80MWh of flow machines, across two sites, primarily to provide SCR, also known as Automated Frequency Response Reserve (aFRR) to the German grid.

This is the first time that flow machines will be used to provide SCR in Germany, with this service typically being provided by ramping coal-fired power plants.

This service requires up to a 4-hour charge or discharge duration and is designed to maintain equilibrium on the electrical network between demand and supply. Providers of SCR are paid a fee based on their available power (MW) and energy (MWh) to charge or discharge to the grid when required.

Scott McGregor, CEO, redT energy commented:
“These projects are a ground-breaking development, not only for redT but for European energy markets as a whole. We are very pleased to partner with ESM, and together we look forward to delivering these projects to market.

redT is proud to be the exclusive energy storage partner on the initial 80MWh phase, with a planned expansion of an additional 690MWh of future projects. This is a real long-term infrastructure application for energy storage – providing 4-hours of capacity to the grid and supporting the growth of renewables, which is what stationary energy storage is designed to do. We are pleased that economic models in the market now support this development.

These projects confirm the suitability of redT’s technology for ‘mega projects’ at grid level, especially in Germany where Transmission System Operators (TSOs) are now looking for long duration, flexible energy storage infrastructure to balance their market areas.

For redT, these projects underwrite our mid-term forecasts and delivery of our Gen 3 product to the market, we are looking forward to delivering these projects following financial close.”

Scott McGregor’s interviews about the 700MWh deal:

Watch video interview

Listen to podcast (from 26:30 onwards)

 

 

 

Further information:

 

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