French regulator selects five energy storage projects in Corsica with total capacity of approximately 48 MW

en.Wedoany.com Reported - The French Energy Regulatory Commission (Commission de Régulation de l'Energie, CRE) has selected five electricity storage projects in Corsica with a total capacity of approximately 48 MW, including two pumped hydro energy storage (PHES) facilities and three battery energy storage systems (BESS). These projects are scheduled to be commissioned between 2029 and 2030.

The selected projects include 29.1 MW/132.4 MWh of pumped hydro storage capacity and 19 MW/38 MWh of battery storage capacity. Depending on the technology type, contract durations will range from 2044 to 2059.

CRE stated that competition among battery developers was limited, with only a few market participants submitting six complete applications. However, the proposed project costs are lower than those in previous storage procurement rounds held in Guadeloupe, Martinique, and Réunion. Battery project costs are 16% lower than in Guadeloupe and approximately 45% lower than in Martinique and Réunion, reflecting the continued decline in energy storage technology costs.

The regulator awarded 19 MW/38 MWh of battery storage capacity from a total of 39 MW/78 MWh in applications, a volume that fell short of the 40 MW battery procurement target set at the launch of the initiative.

All five projects will provide energy arbitrage services to improve renewable energy integration, particularly solar power. CRE modeling shows that without the planned storage assets, Corsica's solar curtailment rate would reach nearly 15% by 2038, while the inclusion of the selected projects will reduce the curtailment rate to below 5%.

Improving renewable energy integration will reduce reliance on the Ricanto and Lucciana power plants as well as gas turbines. These storage assets are also expected to increase the utilization rates of the SACOI and SARCO interconnection lines, which have lower operating costs than thermal power plants.

The pumped hydro storage facilities will provide system inertia, including the Saint Antoine project featuring synchronous compensators, while the battery systems will provide primary frequency regulation services.

France's electricity price equalization mechanism ensures that electricity consumers in non-interconnected regions, including Corsica, pay prices comparable to those in mainland France, despite higher generation costs. The difference between electricity revenue and production costs is offset by the national public energy service tax.

CRE estimates that the total public support payments for these five projects over the contract period will be €181.6 million, with battery contracts lasting 15 years and pumped hydro storage facilities having 30-year contracts. These projects will avoid approximately €535.3 million in generation costs, resulting in net savings of €353.7 million over 30 years.

CRE stated that details of the next storage procurement round in French Guiana will be announced soon.

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