Is Bess profitable in Norway?

The implied IRR has reached more than 30% in 2021 when both the price level and the price volatility are high. In contrast, BESS with the same configuration would not be profitable in Norway. Still, it should be noted that the bidding zone DK2 (Eastern Denmark) is basically the island of Zealand (where Copenhagen is located) and the nearby islands.

Does Bess work in deregulated markets?

Since BESS operation in deregulated markets would depend on the real-time market price and the operating cost, the potential utilization of BESS in different major European electricity markets has been investigated based on the proposed general BESS payoff model considering service remunerations and operational costs.

What is the final operation status of Bess?

The final operation status of the BESS would be determined by the marginal capacity price and the real market capacity price. The BESS would only provide the FCR service if the market capacity price is higher than the marginal capacity price.

How does a Bess get paid?

Depending on the market design, the BESS may receive payments in terms of energy, which is calculated as the product of the energy price of the service (the process to determine the energy price for providing the service would be distinct for different markets) and the energy actually provided during the service.

Is Bess a feasible solution in Europe?

In summary, comparing the major electricity markets in Europe, BESS has shown its potential in becoming a feasible solution in Central Western Europe and parts of Northern Europe by providing frequency regulation services.

What should be included in Bess expenses?

On the contrary, the expenses shall include the battery wear cost and the operational costs. Meanwhile, the state of charge of BESS needs to be balanced after providing a certain service or application. Due to the operational flexibility, BESS assets are only operated when it is profitable.