ESNL Market Research: first storage projects get off the ground
Energy Storage NL, the trade association for the Dutch energy storage sector, in cooperation with research firm Ecorys, today published its Market Report. Some 200 respondents, think developers, financiers, grid operators, etc., indicate that the Dutch energy storage sector is developing rapidly, with the first energy storage projects being realized. Nevertheless, ESNL indicates that further acceleration is necessary to develop an affordable, sustainable and stable energy system through storage.
Rapid growth of Dutch energy storage market
The Dutch energy storage market is developing rapidly as the financeability of storage improves, due in part to an increasing spread in energy prices. For example, in the period 2010-2019, the difference between the 100 most expensive hours and the 100 cheapest hours in a year was about 500 euros/MWh. In 2022 it was 1,700 euros/MWh and in 2023 it rose to 1,900 euros/MWh.
This leads to an increase in both the number and power demand of energy storage projects. Strong growth is expected from electrical storage, think lithium-ion batteries, towards 11.8 GW to be realized by 2027, compared to only 0.8 GW in the Netherlands today. Other storage technologies like thermal storage and chemical storage, think hydrogen storage will also grow rapidly, to 1.9 GW and 10.5 GW in 2027, respectively.
Increase in applications to grid operators
The grid operators also see the rapid development of energy storage reflected in the number of applications, for which the grid operators have shared exclusive data. Currently, TenneT's requested capacity is about 74 GW, of which 3 GW is in the realization phase. The big difference between requested and realized capacity is mainly due to the fact that there is still much uncertainty about the business case and available locations. Provinces Flevoland and Groningen have the most projects in the realization phase, followed by South Holland and North Brabant. Regional grid operators Liander and Stedin are also rapidly increasing the number of capacity requests.
Netherlands middle man within Europe
Over the period from 2020 to 2030, global market growth will rise above 200%. The EU's global market share is likely to be around 20% in 2030. Within the EU, the Netherlands is now a middle-ranking country in terms of installed power and capacity. Portugal, Spain and Germany are leaders.
According to European Commission research, the Netherlands is seen as an attractive country to invest in energy storage because the revenue potential is high. Respondents from the Market Survey, however, see this attractiveness being affected by the fact that Dutch policy is not yet optimal for energy storage.
Energy Storage NL: first projects are coming off, but acceleration needed
Energy Storage NL has been working in recent years to improve the framework conditions for energy storage in the Netherlands. This is now resulting in the first storage projects being released. Nevertheless, the industry association sees that further acceleration is needed so that energy storage can keep future energy prices affordable, reduce grid congestion and guarantee security of supply.
This will require government control in which a clear strategy on the desired storage route towards 2030 and 2050 must be developed. The uneven playing field around transportation tariffs with surrounding countries must be addressed, as well as clarity on the desired storage locations and associated permitting to avoid delays in the rollout.
Order the ESNL Market Research 2024
