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
INTRODUCTION
 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 longterm perspective.
STORAGE – FUNCTION, PLACE, TECHNOLOGY
INTERMITTENT
RENEWABLE
GENERATION
DECENTRALIZED
GENERATION
…
SMART GRID
DEMAND
PARTICIPATION
STORAGE
ELECTRIC
VEHICLES
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
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