What opportunities does energy storage offer in the energy system of the future?
Energy storage plays a crucial role in the energy system of the future. After all, the demand for flexible power is only increasing. Hans-Peter Oskam, Director of Policy & Energy Transition at Netbeheer Nederland, talks about the role of energy storage in the energy system and the opportunities and challenges involved.
A brand new energy storage system
Hans-Peter: "As grid operators, we are responsible for the security of energy supply, but also for the entire energy system. The energy system of the future in 2030 70-80% consists of power from wind and solar. How do we get power when the sun isn't shining, and where do we put power we can't dispose of? We are looking for flexible power, up to nine gigawatts by 2030. That's about eighteen times the nuclear power plant in Borssele: a gigantic amount. We are not even at one gigawatt of flexible power today, so investment is needed. An important source of flexible power is large-scale battery storage."
Three opportunities of energy storage
Hans-Peter argues that there are three major opportunities for energy storage:
- Responding to a fluctuating market price: energy prices fluctuate from hour to hour, and those fluctuations increase in the new system. Parties can respond intelligently to this.
- Supporting services: battery storage helps to map out system security of supply and reliability.
- Better utilization of the power grid: the power grid is increasingly full. Batteries deployed smartly will help make better use of the power grid.
"As grid operator we map out the potential to make the entire system supply-secure, we monitor and estimate the potential for storage. We then enter into discussions with the government and market players about how we can capitalize on this potential and opportunities," says Hans-Peter.
Challenges surrounding the 2030 energy goals
"The biggest challenge is that energy storage itself is a neutral technology. The value is in how you deploy the battery. A battery cleverly deployed helps us move forward. In contrast, a dumb battery makes grid problems worse and increases costs. So we need to look at how we deploy energy storage smartly to move the system forward. One smart way, for example, is storage at high demand locations: at a generation site or at large users, such as factories. This allows them to respond flexibly to energy needs and fluctuating prices," Hans-Peter said.
The place of storage in the energy system
So energy storage is crucial to the energy system of the future, but what does it take to give storage a place in the system? Hans-Peter mentions three handles:
- Rules of the game for the new energy system: tariff regulation, for example regarding transport of large-scale battery storage, needs to be better thought out.
- Space for energy storage: batteries are getting bigger and bigger and thus require more space. The required storage requires as much space as the area of Haarlem. Where do you place that?
- Storage for entrepreneursCompanies are large users and need to think about how to store and use energy smartly.
The role of entrepreneurs in the energy transition
Hans-Peter: "The question is how to make it attractive for entrepreneurs to get started with energy storage. It starts with awareness. We need to share the opportunities and create awareness that cheap energy is not a given. If your plant is running on a cold February day with no wind or sun, power is generated from hydrogen from Namibia. That's more expensive than solar or wind power. Entrepreneurs need to find the cheapest way to power themselves. (Collective) energy storage offers opportunities here for entrepreneurs. To increase support for this, residents and entrepreneurs must (financially) participate in the projects."
How does the government encourage energy storage?
Want to learn more about the future of energy storage? During the Energy storage event, organized by Energy Storage NL and Euroforum on Dec. 7, 2023, Hans-Peter will talk more about how the government can encourage energy storage. In doing so, he addresses three topics:
- What is the government's role regarding subsidies, space and fees?
- What is the role of grid operators regarding tariffs?
- What should we do Europe-wide to achieve a level playing field between countries?
View the program
Are you curious about the full conference program? Then download the brochure of the event for a complete overview. Not only will you be kept informed of the latest developments by inspiring speakers here, but you will also engage in conversation with like-minded people to exchange practical experiences.
Source: Euroforum
