TSO-level strategy mitigates FCA risk: ‘horror stories at DSO level’

“So our approach to Germany was a bit more cautious before that, but we are now leaning into the market much more because things have cleared after the announcement from BNetzA,” Jimenez explains.

“Germany is on the up now. There are still challenges around FCAs etc, but the market is now on an uptick. We’re very excited about Germany. This is our first but there will potentially be more announced later this year.”

The challenge he refers to are FCAs, which is German system operators’ way of dealing with the huge backlog of battery energy storage system (BESS) projects connecting to the grid. These restrict a project’s activity in the electricity market, and we’ve covered them extensively including on a recent webinar with consultancy Clean Horizon.

Jimenez said the company has in general chosen to focus on large, transmission system operator-level (TSO) projects in part to face less constraints in connecting.