Subsidy vs Merchant: Which Models Will Deliver Europe’s Storage Pipeline?

Synopsis

• Poland and Spain rely on capacity schemes which are subject to de-rating factors, change in power and geopolitical shifts– what happens when these schemes no longer exist? 

• Germany and UK have stronger, but more risky revenue potential based on accessible ancillary services, arbitrage markets and merchant exposure 

• Comparing the benefits of government intervention vs. market-led price signals