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Energy Storage News7 days ago

BESS wins in Poland capacity market falls for the first time, de-rating cut to blame

Key Takeaway

Regulatory changes to de-rating factors in capacity markets can significantly reduce the competitiveness and award volumes for BESS, directly impacting developer strategy and project economics.

AI Summary

  • Poland's capacity market saw a decrease in awards for Battery Energy Storage Systems (BESS) this year compared to last.
  • The primary cause for the reduction in BESS awards was a cut to the technology's de-rating factor within the capacity market.
  • This regulatory adjustment directly impacts the economic viability and competitiveness of BESS projects, signaling a less favorable environment for storage developers in Poland's capacity market.
  • Developers and IPPs should be aware that changes to de-rating factors can significantly alter the revenue potential and market participation of BESS assets.

Topics

capacity-marketfinancingpolicystorage