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Utility-scale storage in Switzerland: Needs assessment and support instruments

This project focuses on market design instruments to support the uptake of utility-scale electricity storage in Switzerland to support integration of solar and wind energy while maintaining system adequacy. Additionally, to efficiently allocate support contracts and ensure a high realization rate, we study auction design for supporting storage.

Description

This project focuses on market design instruments to support the uptake of utility-scale electricity storage in Switzerland to support the integration of solar and wind energy while maintaining system adequacy. We evaluate the need for additional storage capacities and determine on which time horizons utility-scale storage is needed by employing large-scale numerical modeling to assess both seasonal and diurnal storage requirements. Subsequently, the project addresses the design of support policies, akin to those applied in renewable generation, to de-risk storage investments and reduce costs through innovative support contracts tailored for storage assets. Lastly, to efficiently allocate support contracts and ensure a high realization rate, we study auction design and the factors influencing non-realization, which has been a frequent problem with auctions in the past. Our work on auctions is applicable not only to storage but also to PV auctions, hydro reserve and strategic reserve power plants.

Key Data

Project team

Project partners

Karlsruher Institut für Technologie KIT

Project status

ongoing, started 11/2024

Funding partner

Federal government