Energy Storage Projects in Romania Predicted to Yield High Returns by Aurora Energy Research, With Anticipated Internal Rate of Return (IRR) Exceeding 10%
Gearing Up for a Battery Energy Storage Revolution in Romania ✨
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Here's a scoop on why Battery Energy Storage Systems (BESS) could be the buzzword in Romania's power sector, according to industry analysts at Aurora Energy Research. Their forecast? A colossal investment of multiple gigawatts of BESS capacity and billions of euros over the next decade 💰
Aurora sounds a warning on the potential pitfalls and uncertainties that await these projects along the way. Coincidentally, they've just launched their Romanian Flexible Energy service to help navigate the complexities of the Romanian energy market alongside their Power & Renewables market forecast 🗺️
So, what's making Aurora so bullish on BESS in Romania? Their analysis puts a spotlight on Romania's supportive policy environment, driven predominantly by the National Energy and Climate Plan (NECP)'s aim to hit 1.2 GW of BESS by 2030 and the government's planned support schemes for storage assets 📜
But what's a good analysis without the promised returns? Aurora's forecast suggests that standalone BESS investments entering the market as early as 2026 could fetch double-digit Internal Rate of Return (IRR). And if that's not juicy enough, co-located assets could prove the cherry on top, particularly after 2028, as saturation in the balancing markets rises 🚀
(Photo: Malpetr/ Dreamstime) 📷
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P.S. While I couldn't find specific information on the exact investment figures from Aurora Energy Research, there are broader trends that could nudge Romania and other regions to invest in BESS:
- Business Energy Demand: The escalating demand for energy and the pursuit of self-sufficiency are prompting businesses to invest in on-site generation and storage. This trend isn't likely to slow down as companies seek more control over their energy supply and expenses 📈
- EU Grid Requirements: To avoid supply issues, the European Union is preparing to invest heavily in electricity grids. This could influence how countries like Romania approach energy storage. The EU aims to boost battery storage capacity from 10.8 GW to 50 GW by 2030, though the desired target is 200 GW ⚙️
- Global Market Trends: The market for grid-scale battery storage is predicted to skyrocket, with a projected value of over $5.8 billion by 2025. This growth is powered by the rising demand for renewable energy integration and grid stability 💡
- With the escalating demand for energy and the pursuit of self-sufficiency, businesses in Romania might consider investing in renewable energy, such as Battery Energy Storage Systems (BESS), to generate and store power on-site.
- As the European Union aims to boost battery storage capacity to 50 GW by 2030, there may be increased investment in Romania's energy sector to address grid requirements and meet these ambitious targets.
- The global market for grid-scale battery storage is predicted to reach a value of over $5.8 billion by 2025, driven by the rising demand for renewable energy integration and grid stability, which could spur investment in Romania's renewable-energy and finance business, particularly in the technology sector.
