There are five products on the market that regulate supply and demand, and storage batteries for the grid are priced as high as 14 yen.
All five products in the market adjusted supply and demand starting in April.
(Source: Ministry of Economy, Trade and Industry)
Analysis of average contract price since procurement start for all products (April 1 ~ April 14)
(Source: Ministry of Economy, Trade and Industry)
Analysis of average realized prices by region
(Source: Ministry of Economy, Trade and Industry)
From April 2024, all five products in the supply and demand adjustment market will be available and trading including grid storage batteries will commence. In response, the Ministry of Economy, Trade and Industry analyzed the trading volume and average contract price (yen/ΛkW･h) in the market from April 1 to April 14 and announced the results. results at the expert meeting on April 22. According to the report, the average contract price for grid storage batteries involved in short-cycle component products is as high as 14 yen, close to the ceiling price.
The supply and demand adjustment market is a mechanism in which joint transmission and distribution operators (TSOs) effectively obtain the regulatory power needed to adjust the supply and demand balance. We process five products, including ingredients, in extremely short time.
Two products with a long time component (tertiary adjusting force) will be launched in 2022, and from April 2024, a short time component (secondary adjusting force ①, secondary adjusting force ②) and the ultra-short period component (main corrective force) will be introduced. Public recruitment has begun. The regulated capacity involved in these activities includes pumped storage generation, general hydropower, thermal power and battery storage. The system's storage batteries can be discharged flexibly which is the case with bidding on the primary regulated capacity call, and secondary regulated capacity starting this month appears to be the majority.
The average contract prices for primary adjustment force, secondary adjustment force ① and secondary correction force ② from April 1 to April 14 are 3.72 yen, 5.69 yen and 4.79 yen, respectively. saddle for all adjustable forces, except storage battery. The prices are relatively high at 37.04 yen, 2.00 yen and 14.00 yen respectively. Regionally, contract prices are higher in Kyushu, where solar generation deployment is progressing and output constraints are frequent.
However, looking at the contract volume as of April 14, the number of bids has decreased compared to the number of offers in most regions, and in particular, new storage battery sources are scarce, causing transactions in the market to decrease. Competition becomes difficult. Not yet. It will be interesting to see how contract prices will change in the future as the use of battery storage on the grid increases and regulated energy supplies increase.
