Executive Viability Abstract
This feasibility study evaluates the development of a utility-scale Battery Energy Storage System (BESS) infrastructure in Greece. With the Greek National Energy and Climate Plan (NECP) targeting 3.1 GW of storage by 2030, the market presents a high-growth opportunity. The project focuses on a 100MW/200MWh lithium-ion facility to stabilize the grid, manage curtailment, and capitalize on energy arbitrage within the Greek Target Model (Ex-Ante and Balancing markets).
Return on Investment
16.5%
Payback Span
6.8 years
Net Present Value
€42.4 Million
IRR Index
16.5%
## Market Analysis
Greece is currently a leader in renewable penetration, often exceeding 50% of the daily mix. However, high curtailment rates of wind and solar necessitate storage. The Regulatory Authority for Waste, Energy and Water (RAAEW) has established a framework for standalone storage and co-located projects. Current market dynamics show a shift from subsidy-driven models to merchant-based revenue streams.
## Capex Summary
The estimated CAPEX for a 100MW/200MWh facility is approximately €95 million. This includes:
- Battery Modules & Racks: €55M
- Power Conversion Systems (PCS): €12M
- Balance of Plant (BOP) & Civil Works: €15M
- Grid Connection (ADMIE): €8M
- Development & Soft Costs: €5M
## Revenue Model
Revenue is generated via three primary streams:
1. **Arbitrage**: Buying low during solar peak hours and selling during evening demand peaks.
2. **Ancillary Services**: Frequency containment reserve (FCR) and automatic Frequency Restoration Reserve (aFRR).
3. **Capacity Payments**: Potential participation in the Greek capacity mechanism auctions.
## ROI Summary
The project demonstrates a strong Internal Rate of Return (IRR) of 16.5%. With a projected annual EBITDA of €14.5M, the project remains robust under various sensitivity scenarios including a 15% increase in battery cell costs.