ENERGY STORAGE CHALLENGES
In 2009 there was no such thing
as a regulatory framework for
Energy Storage (ES). This is
why the European Commission
launched an Energy Storage
Task Force and why, in the
aftermath of this Task Force,
a group of European leading
players in the energy sector –
incl. manufacturers, utilities and
academic bodies - decided to
come together and found EASE
in 2011.
Since then, both the energy
system and EASE have come
a long way. Energy Storage is
the talk of the town – Electric
Cars, PV+Storage, Empowering
Prosumers, Smart Cities &
Smarter Citizens, Demand Side
Management - and not a day
goes by without an article or
conference about it. But that
regulatory framework for Energy
Storage - which the Commission
was after and why those leading
players created an association - is
still not complete.
EASE has taken a look at the
current energy system and
regulatory framework and has
come up with a list of hurdles
that would need to be overcome
in order to achieve the full
integration of Energy Storage and
the full realisation of its potential.
ENERGY STORAGE DEFINITION
The basic need, in order to
create a legal framework dealing
with Energy Storage, is to have
an Energy Storage definition
on EU level. Without it, energy
storage cannot be included in
legislation– such as the upcoming
EU legislative "Winter Package" –
and no true regulatory framework
can even be conceived. This is
why EASE worked over a year
to create a definition that is
accepted by all stakeholders
and has been shared with
the European institutions,
encouraging them to either
provide us with comments or
help us disseminate this definition
as wide as possible in order to
potentially adapt and gather a
consensus around it.
"An "Energy Storage Facility" for
the electricity vector means a
facility used for the intake and
stocking of electricity in different
suitable energy forms. The release
of this energy, at a controlled
time can be in forms that include
electricity, gas, thermal energy
and other energy carriers."
An important aspect of this
definition is that, although it has
been limited to the "electricity
vector"1, it covers all known
energy storage technologies (and
there are quite a few of them) and
is general enough to allow for
the integration of innovations to
come, a.o. since it is not defining
specific services, which could
evolve over time. This technology
agnosticism is fundamental for
EASE, and we would encourage
institutions and regulators alike to
take this same approach.
EUROPEAN INTERNAL ENERGY MARKET
Now that we have begun to
tackle this particular hurdle, it is
time to look ahead, and a good
place to start is the European
Internal Energy Market (IEM),
the completion of which can be
considered paramount for the
full integration and realisation of
energy storage. The creation of a
competitive level playing field will
show the variety of applications
energy storage can perform,
and will prove (and demand!)
the market readiness of its
technologies.
An important factor therein
is the recent Market Design
Consultation. In it, energy storage
is finally recognised as being able
to render the above mentioned
services and applications.
Additionally, EASE is thrilled
to find that this Market Design
Consultation includes a few
features EASE has been trying to
insert in the European legislation.
No double payment of Grid Fees and Taxes for Energy Storage
Storage is both a consumer
(charging) and a generator
(discharging). This leads to
storage operators often having
to pay double fees, levies and
taxes for both the charging and
discharging of energy, preventing
storage projects from being
economically viable and thus
rolled out on the market.
It also prevents storage to be
operated in line with system
needs. Additionally, the situation
differs from Member State to
Member State, which creates
further distortion for the allocation
of storage. Studies by regulators
(e.g. CREG, the Belgian regulator)
exist that demonstrate how the
different fees and taxes applied
to ES devices strongly reduce the
income from ES business models
for all configurations operating
with a connection to the Grid.
A Market-based approach is preferable
Such an approach allows longterm
price signals and short-term
markets as well as scarcity prices.
Price fluctuations will have a high
potential to properly remunerate
flexibility and capacity options
like energy storage, as long as
all energy storage technologies
are allowed to participate in all
mechanisms
All generators should be in the market
One of the "raisons d’être" of
Energy Storage is the integration
of intermittent RES into the
grid. Alternatives to the current
subsidies for RES should be found
and these should be harmonised
at EU level, incentivising
intermittent generation to follow
the market and to get support
using market rules; meaning
that the energy must be sold on
the market. Non-discriminatory
access to technologies which can
facilitate the economic growth of
renewables (like energy storage)
should be facilitated with market
based regulation, assuring that
the benefit is delivered at the best
cost.
1. There are currently three different Energy Vectors used accross the EU: Electricity, Gas & Heat. ES has applications within all vectors and often serves as a gateway between them.
The European Association for Storage of Energy (EASE) is the voice of the energy storage community, actively promoting the use of energy storage in Europe and worldwide.
EASE actively supports the deployment of energy storage as an indispensable
instrument to improve the flexibility of and deliver services to the energy system
with respect to European energy and climate policy. EASE seeks to build a European
platform for sharing and disseminating energy storage-related information. EASE
ultimately aims to support the transition towards a sustainable, flexible and stable
energy system in Europe.
Disclaimer: This response was elaborated by EASE and reflects a consolidated view of its members from an Energy Storage point of view. Individual EASE members may adopt different positions on certain topics from their corporate standpoint.