Czech Republic Renewable Energy Battery Storage Infrastructure Development Feasibility Study with Energy Security Forecast

Executive Viability Abstract

This feasibility study evaluates the development of large-scale Battery Energy Storage Systems (BESS) in the Czech Republic to support the national energy transition and enhance energy security. Given the Czech Republic's strategic shift from coal-fired power to volatile renewable sources (solar and wind), BESS infrastructure is identified as a critical component for grid stabilization, frequency control, and peak shaving. The study forecasts a significant increase in demand for balancing services (aFRR, mFRR) as mandated by the national grid operator (ČEPS), coupled with favorable regulatory shifts following the 'LEX OZE II' legislation.

## Market Analysis The Czech energy market is currently undergoing a rapid transformation. With the planned phase-out of coal by 2033, the grid requires flexible assets to manage the intermittency of the 6GW+ of solar capacity expected by 2030. Currently, the market for ancillary services is undersupplied, leading to high prices for frequency restoration reserves. The European Union's Modernization Fund provides substantial subsidies (up to 40% of CAPEX) for energy storage projects in the region, making the Czech Republic one of the most attractive CEE markets for BESS. ## Capex Summary The estimated CAPEX for a 50MW / 100MWh BESS facility is approximately €45 million. This includes: - Battery Modules & Inverters: €28M - Balance of System (BoS) and Grid Connection: €7M - Engineering, Procurement, and Construction (EPC): €6M - Contingency and Permitting: €4M. ## Revenue Model The revenue model relies on a multi-stacked approach: 1. **Ancillary Services (80%):** Providing FCR (Frequency Containment Reserve) and aFRR (automatic Frequency Restoration Reserve) to ČEPS. 2. **Arbitrage (15%):** Charging during low-price periods (negative prices) and discharging during peak demand. 3. **Capacity Markets and Local Flexibility (5%):** Future participation in emerging localized grid congestion management services. ## Energy Security Forecast BESS infrastructure reduces Czech reliance on natural gas peaking plants for grid balancing, which are often fueled by imported gas. By storing surplus domestic solar energy, the BESS infrastructure secures the national grid against external supply shocks and decreases the 'Loss of Load Expectation' (LOLE) during winter months.