French regulator selects five Corsica energy storage projects totaling nearly 50 MW

France’s Commission de Régulation de l’Énergie (CRE) has selected five electricity storage projects in Corsica with a combined capacity of about 48 MW, comprising two pumped hydro energy storage (PHES) facilities and three battery energy storage systems (BESS). The projects are scheduled to enter service 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. Their contracts will run until between 2044 and 2059, depending on the technology.

CRE said competition among battery developers was limited, with six complete applications submitted by a small number of market participants. However, proposed project costs were lower than those seen in previous storage procurement rounds in Guadeloupe, Martinique and Réunion. Battery project costs were 16% below those recorded in Guadeloupe and about 45% lower than in Martinique and Réunion, reflecting continued declines in storage technology costs.

The regulator awarded 19 MW/38 MWh of battery storage capacity from a pool of applications totaling 39 MW/78 MWh. The volume fell short of the 40 MW battery procurement target set when the scheme was launched.

Renewable integration

CRE said all five projects will provide energy arbitrage services that improve renewable energy integration, particularly for solar generation. According to the regulator’s modelling, solar curtailment in Corsica would reach nearly 15% by 2038 without the planned storage assets. The addition of the selected pumped hydro and battery projects would reduce curtailment to below 5%.

The regulator said improved renewable integration would reduce reliance on thermal generation at the Ricanto and Lucciana power plants, as well as combustion turbines. The storage assets are also expected to increase use of the SACOI and SARCO interconnections, which have lower operating costs than thermal power stations.

CRE added that the pumped hydro facilities will provide system inertia, including the Saint Antoine project, which includes a synchronous compensator. Battery systems will provide primary reserve services.

France’s tariff equalization mechanism ensures electricity consumers in non-interconnected territories, including Corsica, pay prices comparable to those in mainland France despite higher generation costs. The resulting gap between electricity revenues and production costs is covered through the country’s public energy service levy.

CRE estimated that public support payments for the five projects will total €181.6 million over their contractual lifetimes, comprising 15-year contracts for batteries and 30-year contracts for pumped hydro facilities. The regulator said the projects will avoid approximately €535.3 million in generation costs, resulting in net savings of €353.7 million over 30 years.

CRE said it will soon announce details of the next storage procurement round in French Guiana.

From pv magazine France