Belgian CM supports new BESS investment

Belgian CM rebounds from last year’s moribund auction which procured 0MW, following the extension of nuclear reactors Doel 4 & Tihange 3, to procure 350MW of new build capacity in an under-subscribed auction. Whilst the first auction in 2021 cleared only nominal amounts of storage capacity, instead delivering a new build 1600MW CCGT & 800MW refurbished CCGT, the latest auction procured 350MW of 4hr BESS (as well as 250MW of additional OCGT capacity), marking a distinct shift in investor interest and the maturation of the BESS investment case in continental Europe. Unlike in other capacity market auctions, the Belgian CM clears on a pay-as-bid basis, which resulted in prices clearing at an average of €36.4/kW, with a maximum successful bid of €69.9/kW/yr.