Source: TeslaGTM Research expects to see more European storage projects enter this market, following the trend in other nascent markets and driving clearing prices down. This trend of market saturation was also observed by GTM Research in the PJM regulation market in recent years. That means it will be more important than ever for participants to be able to maximize value, by bidding in innovative and even complementary bids such as REstore’s VPP offering backed by a critical volume of energy storage.

REstore claims the technology automatically trades energy on the wholesale market, without any negative impact on its performance and revenues for the provision of the frequency regulation service to maximize investor returns. “What makes this battery project unique is its inclusion in a larger flexibility portfolio, which results into a 1.5 times higher revenue stream for the battery, compared to the base case where the battery is monetized on a standalone basis,” stated Jan-Willem Rombouts, co-CEO of REstore.

The scalable VPP has the Tesla battery as the backbone and the secret sauce of REstore’s software to provide viable frequency services to the transmission system operator, and it maximizes returns from market participation for all parties seeking revenues as part of the portfolio.

Investing for the future

Investment firm LRM put 11 million euros into the Belgian storage project. LRM was one of the lead investors in REstore before the Centrica acquisition and is co-owned by the Flemish government.

The battery is only the start of grid edge investments at Terhills Resort, located on a former mining site. Terhills is planned to be an eco-resort, with a full direct current microgrid comprising a fleet of electric transport, supplied by solar PV generation, and complemented by the 18-megawatt energy storage system. The objective is to turn a site that was built on the “old black stuff” into a green innovative hub.