Energy storage+renewables: what is needed to scale up

Key takeaways from EUSEW2024

Energy storage + renewable is a proven formula, crucial for the success of the EU energy transition  

In the past legislative term, the EU institutions delivered a series of laws that set a good basis for this formula to thrive: from the Clean Energy Package that defined energy storage to the recent Electricity Market Design. 

However, to reach the EU goals of becoming carbon-neutral by 2050 and to ensure energy security, we need to keep the momentum going. There needs to be a massive deployment of RES and this will require significant increases in grid flexibility.  According to the JRC, flexibility requirements will more than double by 2030 and increase sevenfold by 2050!   This flexibility is crucial to ensure a functioning grid as we integrate more renewable energy sources and to end our reliance on fossil “flexibility”. To meet these flexibility requirements, a wide range of non-fossil solutions is at our disposal. Among them, a vast set of storage technologies address the variety of challenges on different timescales. 

These technologies are already in use but it is now time to scale up and speed up the deployment of Energy Storage projects in the EU to not miss our environmental & energy targets!  

Implement existing requirements 

A solid favourable framework has been built over the last 5 years at EU level, we should make use of these tools! It is now the Member States’ responsibility to fully implement EU legislation. Important provisions and instruments from the Clean Energy Package,  and REPowerEU are not completely transposed in several countries across Europe. 

Though the draft National Energy & Climate Plans brought encouraging examples, they also showed that not all Member States are working at full speed to support energy storage at national level.

Hopefully, the new provisions of the Electricity Market Design will bring everyone up to pace, but national authorities need to maintain and accelerate their efforts to support flexibility solutions. 

Mobilise resources to remove barriers 

A level-playing field and long-term visibility are essential for projects to get off the ground.

As highlighted by several industry experts, it is essential to guarantee a technology-neutral approach in national schemes that welcomes all available technologies and the variety of solutions they can bring to address energy challenges. It is equally important that these technologies have access to all available financial instruments that can help them secure long-term revenue.

Likewise, common barriers such as double charging of energy storage are still existing in too many countries and should be tackled once and for all to not hamper flexibility deployment.  

Assess the flexibility needs in the right way 

The Electricity Market Design finally requires Member States to conduct flexibility and storage needs assessments.  

Guidance will be necessary to ensure that such assessments are performed in a coherent way across Europe. It was reassuring to hear from Mechthild Wörsdörfer – Deputy Director-General, European Commission – that the Commission is working in this direction.

The methodology used for those assessments must be right so that the services provided by energy storage at different timescales are reflected in the flexibility assessment. It cannot be a copy of existing methodologies that would lead to shortcomings for the deployment of non-fossil solutions.

Fortunately, ACER confirmed that they are aware of possible pitfalls and are looking into ways to collect stakeholders’ input on this new methodology. The Coalition welcomes this cautious approach and will do its share to help design a process that is key to ensure we succeed in our ambitious environmental and energy objectives.