China’s Narada Power Source Ltd has signed a contract of cooperation in energy storage with Upside Consulting GmbH and Upside Invest GmbH & Co.,KG to build, operate and sell a storage system together for service of primary frequency regulation, ratified by transmission operators of German grid, with the initial capacity of 50MW.
Narada will be participating in the forthcoming Africa Solar + Energy Storage Congress & Expo 2017 that will take place in Nairobi Kenya on June 27-28.
It is a mature market for electrical auxiliary service of frequency regulation in Germany with capacity over 3000MW, which can be expanded to 3000MW in entire Europe. The storage system with batteries is with both better social and economic benefits comparing conventional thermodynamic generator, thanks to its specialties of higher speed of response, lower expense and more environment-friendly. Therefore, the storage system with batteries, replying on its advantage in cost and technics, will become more and more popular in market of electrical auxiliary services in Europe.
The service of primary frequency regulation in Germany is weekly offered by bidding in competition, whose average annual revenue of Euro 3000/MW/week in last eight years, with obvious uptrend, consequently, it is getting more and more attractive to various financial investment institutions in Europe, such as investment funds, pension funds among others.
Upside GmbH is a pioneer in market of primary frequency regulation with battery storage system, whose manager board mainly consists of professional staffs with over 15 years career in renewable energy industry, and quite rich experiences in operation of PV and storage stations. Upside GmbH is also involved in standards-setting for renewable and storage stations in Germany, with developed capacity over 290MW, including 2 station in operation in Brandenburg(1.3MW and 5MW), among which, the 5MW is considered as landmark project of renewable project in new Hardenberg region, financed by state department of economics and energy with 2.85 million Euro. So far, those two storage projects are both in normal operation, involved in frequency regulation service each week, with good working condition and stable revenue.
In following two years, Narada will cooperate with Upside GmbH in construction of storage station over 50MW, with total investment about 42 million Euro, by means of advanced battery technology as well as PCS system, which will be involved in PCR (primary control regulation) service market in Germany. This project will help Narada in deep understand and deep involvement in storage market of frequency regulation, so as to promote energy storage system throughout Germany and even the entire Europe.