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Battery storage on a capacity market In Germany – but not only there – there is a heated debate about the pros and cons of a capacity market. The German Renewable Energy Association is against it, and recently the German New Energy Industry Association, the DIHK and the EEX energy exchange have also taken a clear stance: Germany does not need a “power plant subsidy program.” In this article, four experts explain why battery storage can also play an important role in a capacity market and make recommendations on how the design of the market can help avoid mismanagement, wrong incentives and unnecessary costs.
Lennard Wilkening, Kilian Leykam, Johannes Müller
Jul 30, 2024
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UK T-4 auction paves the way to nearly 7 GW of new BESS capacity by 2028 Out of the 6.9 GW of battery energy storage systems (BESS) prequalified, which translates into 1.9 GW derated capacity, around 1.8 GW of derated BESS secured 15-year contracts in the UK's T-4 auction. This is nearly two time more than the volume procured last year. Only a week earlier, a record for BESS procurement was also set in the T-1 procurement.
Marija Maisch
Mar 13, 2025
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Batteries make strong contribution in Belgium’s latest capacity market auctions As in last year’s auctions, battery storage accounted for nearly all of the new-build capacity selected in the three 2025 capacity market auctions. Across all procurements to date, 1.6 GW of new-build battery capacity has been awarded capacity payments by the winter of 2029-2030.
Marija Maisch
Nov 03, 2025
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UK floats capacity market rule changes for BESS and other technologies Proposals could see BESS assets self-nominate their connection capacity at auction to ensure long-term delivery, despite degradation, as well as simplifying reporting rules for behind-the-meter storage assets traded by demand-side response aggregators.
Matthew Lynas
Oct 07, 2025
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Batteries awarded 1.22 GW in UK capacity market auction for 2029 delivery Provisional results show more than 100 battery energy storage systems (BESS) awarded capacity market contracts in latest T-4 auction for Great Britain’s energy grid, with the vast majority of BESS contracts awarded to new-build capacity.
Matthew Lynas
Mar 11, 2026
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Unprecedented solar and storage growth on horizon with record installations and investments in U.S. The Inflation Reduction Act and Bipartisan Infrastructure Law mark an epochal shift in the landscape of clean energy policy, heralding a new era for the solar and energy storage sectors in the U.S.
Markus A.W. Hoehner
Dec 18, 2023
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US power grid adds 4.2 GW of battery storage in H1 2024 Battery storage accounted for the second largest share of newly operating generating capacity in the United States during the first half of 2024. If all planned additions come online, this year could see a record amount of battery storage capacity added to the grid amounting to 15 GW.
Marija Maisch
Aug 23, 2024
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Romania’s grid operator publishes rules for capacity auctions All generation and energy storage facilities of 5 MW or larger in Romania will be required to secure grid access via annual auctions beginning January 2026. The country’s transmission and system operator, Transelectrica, has published how it plans to implement the auctions.
Patrick Jowett
Oct 06, 2025
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Poland’s new capacity market auction could hamper BESS The draft parameters for this year’s capacity market auction in Poland could make the rollout of battery energy storage systems (BESS) much more difficult. The document proposes a significant reduction to the BESS derating factor that could be particularly harmful for longer duration storage systems.
Marija Maisch
May 31, 2024
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