Guadeloupe storage tender winners announced: Prices fall 25% as sector matures

The French Energy Regulatory Commission (CRE) has unveiled the winners of its latest call for projects dedicated to electricity storage in Guadeloupe. In total, five installations were selected, representing a combined power of 32 MW and a capacity of 170 MWh. These projects are designed to secure the grid and accelerate the deployment of renewable energies in the territory.

Launched on December 18, 2024, this “guichet de saisine” (referral window) attracted significant interest from developers. Out of 14 dossiers submitted, totaling 84.7 MW, five projects led by four different companies were selected, slightly exceeding the 30 MW target originally set by the CRE.

Falling costs

This edition confirms a strong trend in the sector: a significant drop in costs. The average investment cost (CAPEX) for the selected projects stands at €698/kW, while the annual operating cost (OPEX) is €42/kW/year. This represents a decrease of approximately 25% compared to previous similar tenders in Martinique and Réunion.

According to the CRE, this increased competitiveness is primarily due to the fall in battery prices and the optimization of connection costs, which have been roughly halved thanks to siting restrictions favoring areas where the high-voltage (HTB) network is not constrained.

The selected projects, which rely on lithium-ion technology, will mainly provide load shifting services (smoothing renewable production) and primary frequency reserve. By limiting the use of fossil-fuel thermal power plants, which are often called upon as backup, these storage systems will generate substantial savings for the electricity system.

The CRE estimates that while the support for these five installations will represent a cost of €65 million (USD 77.3 million) in public service charges over their lifespan, they will avoid approximately €1.41 billion (SUD 1.7 billion) in production surcharges. The net balance is thus highly positive, with estimated net savings of nearly €1.35 billion (USD 1.6 billion) over the next 15 years.

This momentum for storage in Non-Interconnected Zones (ZNI) is set to continue. The CRE has indicated that the review of projects for Corsica is currently underway, with results expected in the coming weeks, to be followed by a new call for projects in French Guiana.

From pv magazine France.