Developing a 700MWh portfolio of grid support projects, Germany
redT, alongside its project partners, has signed an exclusivity agreement to develop a 700MWh portfolio of grid support projects across Germany.
Comprising approximately 700MWh in total, the portfolio is comprised of 2 identical 40MWh projects, followed by a much larger 690MWh rollout. The initial projects will take part in Germany’s Secondary Control Reserve market, providing bi-directional balancing capacity to a number of Transmission System Operators (TSOs).
Alongside providing the SCR service, redT’s machines will also provide additional upside from wholesale energy trading activities across the European interconnected wholesale energy market. Infrastructure investors in projects such as these can therefore typically expect IRR results in the low to mid-teens.
redT is currently working to progress to financial close alongside their chosen investment partner on the first 40MWh phase of the portfolio.
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.
Flow machines – a superior alternative to coal fired power plants
Flow machines have been chosen to provide this service due to their ability to provide 4+ hours of energy (a minimum requirement for bidding into the SCR market) and superior response times when compared to conventional thermal generation, which has traditionally provided balancing services in Germany. Flow machines provide a flexible, non-degrading asset at a centralised level, which can used heavily, every day, bi-directionally for 20 years or more.
Supporting Germany’s Energiewende
Germany’s ongoing energy transition (“energiewende”) has seen a significant shift away from centralised coal-fired generation assets towards more flexible generation both on a centralised and decentralised basis. This transition has also been characterised by Germany’s well publicised announcement of a nuclear moratorium.
The resulting build out of renewables across Germany in recent years has had the effect of creating highly volatility pricing, requiring mechanisms such as SCR to be introduced.
redT is very proud to be at the heart of Germany’s energy transition, enabling more renewables to come online at national level.