The role of energy storage in EU's future energy system
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1 The role of energy storage in EU's future energy system 21 April 2016 ITRE Committee hearing European Parliament Brussels, Belgium Patrick Clerens EASE Secretary General
2 Introduction to EASE European Association for Storage of Energy is the European voice of the energy storage community advocates the role of energy storage as an indispensable instrument for the energy system supports a sustainable, flexible and stable energy system shares and disseminates information Strategic objectives: 1 Promotion of the role and benefits of energy storage 2 Fair market design for energy storage 3 Promotion of funding for energy storage (mainly RD&D) 2
3 EASE members
4 Energy Storage technologies EASE promotes all Energy Storage types in a technology-neutral manner. Chemical Electrical Hydrogen Synthetic Natural Gas Capacitors SMES Electrochemical Mechanical Classic Batteries Flow Batteries Flywheels Adiabatic Compressed Air Lead Acid Li-Ion Vanadium Red-Ox Zn-Br Pumped Hydro Diabatic Compressed Air Li- Polymer Li-S Pumped Heat Electrical Storage Cryogenic Energy Storage Metal Air Na-NiCl 2 Ni-Cd Na-Ion Na-S Ni-MH Heat (Hot Water/PCM) Packed-bed Heat Storage Thermal Molten salt (Heat/CSP thermal) Smart Electric Thermal Storage 4
5 Energy Storage in the energy system Energy Storage (ES) can be deployed at all levels of the grid - from consumer premises to transmission level. 5
6 Renewable Conventional Energy Storage applications in the energy system EASE is continuously identifying and analysing the numerous system application which can be met by Energy Storage. NOT EXHAUSTIVE Generation Transmission Distribution Customer services Black start Participation to the primary frequency control Capacity support End-user peak shaving Arbitrage Participation to the secondary frequency control Dynamic, local voltage control Time-of-use energy cost management Support to conventional generation Participation to the tertiary frequency control Contingency grid support Particular requirements in power quality Distributed generation flexibility Improvement of the frequency stability of weak grids Intentional islanding Continuity of energy supply Capacity firming Investment deferral Reactive power compensation Limitation of upstream disturbances Limitation of upstream disturbances Participation to angular stability Distribution power quality Compensation of the reactive power Curtailment minimisation Limitation of upstream disturbances
7 Energy Storage applications Examples For DSOs, energy storage: Enables the increasing deployment of intermittent renewable energy sources (i-res) Improves power quality issues, e.g. in rural areas where PV feed-in affects voltage level Enables demand-side response (DSR) Provides incremental capacity to address grid congestion (i.e. peak shifting), allowing investment deferral For prosumers, energy storage: Provides a means for storing surplus self-generated electricity Enables (deferred) self-consumption For TSOs, energy storage: Enables the increasing deployment of i-res Provides incremental capacity, allowing investment deferral Provides modulation of conventional power generation (e.g. as spinning reserves are expected to decline) Allows balancing of the power system on a short time scale
8 Energy Storage policy objectives The business case for Energy Storage is viable but fragile; it can be strengthened by regulatory reform. (1/2) Defining a separate asset category and rules for Energy Storage systems. Energy Storage should be recognised as the 4 th element of the energy system (alongside Generation, Distribution/Transmission and Consumption) Eliminating technical barriers and discriminatory practices against Energy Storage in the electricity network codes Eliminating unwarranted fees and taxes (e.g., double-taxing for the charging and discharging of Energy Storage) Allowing RES to be fully integrated into the market and driving down prices by integrating all energy system components into the market 8
9 Energy Storage policy objectives The business case for Energy Storage is viable but fragile; it can be strengthened by regulatory reform. (2/2) Ensuring the procurement of all energy and ancillary services is marketbased. In such open procurement, whether national or cross-border, Energy Storage should compete on an equal basis with other providers Ensuring well-designed and properly functioning capacity markets, including eligibility for Energy Storage Introducing pay-for-performance schemes, which value the properties provided by fast-reacting, flexible resources in energy and ancillary service markets Permitting long-term contracts for Energy Storage (e.g., in the context of primary/frequency control reserves) 9
10 Thank you for your attention EASE European Association for Storage of Energy Avenue Adolphe Lacomblé 59/8 BE Brussels Tel: Fax: info@ease-storage.eu Secretary General: Patrick Clerens p.clerens@ease-storage.eu 10
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