DEVELOPMENT OF ELECTRICAL

ENERGY STORAGE IN THE

EUROPEAN UNION

Jorge Vasconcelos

NEWES, New Energy Solutions

Society of Electrical and Electronic Engineers in Israel (SEEEI)

Eilat, November 15, 2012

DEVELOPMENT OF ELECTRICAL ENERGY STORAGE IN THE EU

• INTRODUCTION

• STORAGE – FUNCTION, PLACE, TECHNOLOGY

• BUSINESS MODELS

• CONCLUSIONS

In order to meet European Union climate and energy policy targets,

the energy sector must undergo substantial structural changes.

Electricity will play a crucial role in this transformation.

Before stating categorically that more storage should be introduced, it

is important to have a comprehensive understanding of the eventual

functions that electricity storage has to fulfil, together with other grid-,

generation-, and demand side assets.

INTRODUCTION

What the future power system needs is not electricity storage

as such, but rather well-adapted system and market

architectures. Electricity storage should be considered as one

of the many ways to provide various services to the system

and it be seen in the broader EU energy context, taking into

account possible interactions between different types of

energy storage.

INTRODUCTION

Assuming the need for specific storage facilities, the search

for workable business models should start within the current

market design and regulatory context, investigating how to

facilitate cost-effective and market-based storage deployment

and operation. However, electricity markets need to be

redesigned and therefore storage must be seen in this long-

term perspective.

INTRODUCTION

SMART GRID

INTERMITTENT RENEWABLE GENERATION

DECENTRALIZED GENERATION

DEMAND PARTICIPATION

ELECTRIC VEHICLES

STORAGE

…

VARIABILITY ? FLEXIBILITY ?

STORAGE – FUNCTION, PLACE, TECHNOLOGY

STORAGE – FUNCTION, PLACE, TECHNOLOGY

STORAGE – FUNCTION, PLACE, TECHNOLOGY

STORAGE – FUNCTION, PLACE, TECHNOLOGY

STORAGE – FUNCTION, PLACE, TECHNOLOGY

STORAGE – FUNCTION, PLACE, TECHNOLOGY

STORAGE – FUNCTION, PLACE, TECHNOLOGY

STORAGE – FUNCTION, PLACE, TECHNOLOGY

BUSINESS MODELS

BUSINESS MODELS

BUSINESS MODELS

BUSINESS MODELS

BUSINESS MODELS

BUSINESS MODELS

BUSINESS MODELS

By focusing on only one specific application, electricity storage typically

cannot reach profitability in the current market context.

Today’s challenge are:

a) how to aggregate multiple services and to maximize multi-income

streams;

b) how to overcome existing market design / regulatory obstacles.

CONCLUSIONS

1) How to coordinate the provision of multiple services ?

2) How to facilitate market-based storage deployment within the

current market structures, while

3) avoiding stranded costs / misallocation of resources ?

4) How to handle sytorage within a new (2020 / 2050) market design

and regulatory framework ?

http://www.eui.eu/Projects/THINK/Home.aspx