Tennet: Big role for batteries for stable 2030 electricity grid
TenneT today published a position paper entitled 'TenneT's position on Battery Energy Storage Systems (BESS)'. With this paper, the grid operator wants to provide clarity to market parties on the application of large batteries (>70 MW) on the main voltage grid.
Reconsideration of energy storage position
TenneT is forced to reconsider their previous position around energy storage because of the major short-term challenges for the main voltage grid. For example, power plants are no longer allowed to burn coal by 2030, the demand for flexible consumption of electricity is rising, especially due to the continued growth of energy production from solar and wind, and the supply of other flexible capacities is not developing as fast as yet, however. For example, the growth of hydrogen production requires more time and also flexible demand ("Demand Side Response") is not yet large enough by then.
9 GW of battery power for system stability
According to TenneT, BESS will therefore play an important role in maintaining stability in the power grid, including for voltage management, dynamic stability, control and reserve power and redispatch). In addition, the report showed 'Supply security monitoring 2022' in January already showed that security of supply declines starting in 2030. In the base case, the security of supply standard of 4 hours, was exceeded by half an hour to a level of 4.5 hours. Nothing like this had happened before.
TenneT now expects 9 GW of batteries to be sufficient in 2030 to cover the remaining need for flexibility. To connect and effectively deploy such capacities of batteries, it is crucial that they be connected to TenneT's high-voltage grid at the right location.
Power map energy storage by province
TenneT is currently developing policy on where the grid operator does and does not want batteries. TenneT has already outlined some basic principles for batteries in the paper, namely: not under lines or over cables because of operational reliability and workability, not in the direction where TenneT wants to (potentially) expand the substation in the future, as close as possible through shorter cables, taking into account danger safety and in the vicinity of wind, solar farms and/or industry (production and/or off-take).
In order to further concretize these principles, TenneT has developed an energy storage capacity map for each province that clarifies how much battery capacity is needed for each province. Municipalities and provinces, together with market parties, can anticipate this in order to complete spatial planning and permitting processes in a timely manner. So that battery storage can be operationally deployed as soon as necessary to improve the efficiency of the electricity grid.
Energy Storage NL: clarity is desirable, adjustment of transmission tariffs necessary
Energy Storage NL is pleased that TenneT is providing more clarity to the market about the storage requirements on the main voltage grid. However, ESNL does point out that TenneT and also other grid operators need to speed up the further concretization of connection conditions. As Tennet shows in its position paper, more than 200 storage projects - some of them for more than 1 year - are already waiting for clarity from the grid operator. In addition to clarity, adjustment of transmission tariffs for batteries is also necessary. These transmission tariffs, which TenneT is raising to 90% for 2024 for the main voltage grid, ensure that battery development will be financially unprofitable for the time being. ESNL therefore calls on TenneT and also the other grid operators not only to provide clarity, but also to make an adjustment around the transmission tariffs for batteries. Only then will 9 GW in 2030 be in sight, according to ESNL.
