A market potential study is to be undertaken on battery energy storage systems in Central America.
The study to be carried out by the Central American Bank for Economic Integration (CABEI) will assess the potential market demand for the use of grid-scale battery energy storage systems. This covers systems co-located with variable renewable energy generators and stand-alone in the transmission and distribution networks in the national and interconnected power systems of Central America.
It is also expected to define the opportunities and limitations in introducing battery storage in relation to the regional and national regulatory frameworks of the beneficiary countries, considering incentives and the technical and economic benefits that these systems offer to power interconnected grids.
In addition, the study will contribute to the execution of pilot projects in selected member countries. It also will recommend new business models and a strategic framework for the Bank to identify and develop battery storage projects within the region.
“Through the execution of this important technical cooperation, the countries of our region will be able to rely on an adequate study of demand that will provide information on the best investment and promotion practices for the implementation of this type of systems,” commented CABEI Executive President, Dr Dante Mossi.
At least three pilot projects are expected to be identified, Mossi added.
The study is expected to get under way during Q1 of 2021 and is being supported with $350,000 technical cooperation support from the Republic of Korea. The Republic will collaborate in the project supporting the strengthening of capacities and the transfer of knowledge to the project technical teams.
The study also is expected to lead to deeper collaboration of Korea with the countries of Central America.