How risky is a merchant storage project?

Merchant storage projects are complex, but the risks can be measured and managed with appropriate planning and analysis. Merchant markets are evolving quickly all over the world, many being intentionally designed to incorporate more energy storage.

Is merchant storage difficult?

Merchant storage is complicated, but not impossible As the storage market evolves, we see projects with an increasing proportion of their revenue expected to come from the merchant market rather than firm contracts. Just a few years ago it was the opposite.

Will merchant storage investment opportunities become more attractive in the future?

asingly critical role in the future. Thus far, most storage developments have been utility-owned or backed by long-term contracts, but merchant storage investment opportunities may become more attractive as the markets evolve and investors become comfortable w th the value stacking opportunities.In 2019, CRA published an Insights1 on

Should paired merchant storage projects be compared to standalone storage?

The tradeoffs should be quantified when considering renewable paired merchant storage projects versus standalone storage. Batteries that are DC connected to solar charging facilities may have discharging limitations during periods of time when the solar is producing due to constraints of the shared inverter.

Is PJM a core merchant storage market?

ty in core merchant storage markets. PJM was a key focus market for early projects due to a combination of market access liberalization and h gh regulation pricing in the region. While ERCOT has seen limited action in storage thus far, it is clearly an emerging market given rece