Terna, which is an electric system operator based in Italy, has approved contracts for a number of megawatts of energy storage services for serving grid-balancing applications every month during the course of 2019.
Forty gigawatts of novel renewable energy systems capacity is going to pursued by the end of 2029 as part of Terna’s initiative of overhauling, as well as, evolving the electricity system of the nation via its Grid Development Plan, for a policy target to be achieved by renewables of being over half of the gross electricity consumption which is precisely 55.4 percent by that year.
This is a correspondent of nearly 12 GigaWatts of new renewables capacity by the end of 2024, more than 1 GigaWatt of demand response, just more than 5.4 GigaWatts of new gas capacity and over 3 GigaWatts of new energy storage capacity. Italy has the plan of phasing out coal entirely by 2025.
Thus far, this energy storage uptake has been focused for the maximum part into a Terna pilot program, known as UVAM (stands for Virtually Aggregated Mixed Units) which was launched in November 2018. The program enables resources of as small as 1 MegaWatt to partake in keeping a balance between the demand and supply of the grid. This 1 MegaWatt threshold is deemed to be significantly lower than the capacities needed for parallel grid-balancing opportunities in the Netherlands, as well as, France.
As per a Terna factsheet, by June 2019, over 120 Virtually Aggregated Mixed Units, totaling over 830 MegaWatts capacity were qualified for providing ancillary services, with the mass majority which was equivalent to 83 percent holding capacity contracts that promise availability to the grid operator when required.