Innovative energy storage solutions will play a key role in ensuring the integration of renewable energy sources into the EU grid and thus enable the transition to an energy system relying heavily on renewables, according to a new European Commission study published on 11 May.
At present, by far the most widespread technology in the EU for storing energy is pumped hydroelectric storage, although new battery technology projects are emerging, such as lithium-ion batteries or decentralised storage ("behind-the-meter" storage), the paper points out.
According to this study, the deployment of storage technologies is mainly hampered by the lack of a viable business case for many energy storage projects.
"Various policy barriers still hamper the development of energy storage in the EU and lead to uncertainty concerning the revenues streams to cover the project costs and risks", the study notes.
In order to accelerate the deployment of energy storage technologies, it calls on policy makers to provide a favourable environment and a level playing field for storage. To this end, effective implementation of the clean energy package adopted in May 2019 should be a priority, according to the study.
The paper further recommends that the Commission, the Agency for the Cooperation of Energy Regulators (ACER) and other EU authorities give priority to policy measures that address storage barriers identified in most or all Member States.
While stressing the importance of having more reliable and regular data on energy storage, the study also suggests increasing the efficiency of energy and greenhouse gas taxation and eliminating double taxation of stored energy (i.e. when it is stored and again when it is consumed).
To consult the study (in English): https://bit.ly/3cnRTXT (Original version in French by Damien Genicot)