EU’s Shift To BTM Batteries To Meet Energy Demand: EMBER

EU's Shift To BTM Batteries To Meet Energy Demands: EMBER

EMBER in its recent report identified that installed battery capacity in the EU doubled to 16 GW in 2023, with a significant concentration in countries like France, Ireland, and Germany. Behind-the-meter (BTM) batteries constitute a substantial portion of this capacity, with countries like Spain and the Netherlands expected to follow suit due to high renewables penetration.

Emphasizing the importance of battery storage in fostering clean and flexible energy, the report, titled ‘Making Clean Power Flexy,’ showcases the role of flexible energy solutions for integrating increasing levels of wind and solar power into Europe’s energy transition. Study indicated a twofold surge in the EU’s power system flexibility requirements by 2030, underscoring the urgent need for swift renewable energy deployment to accommodate electricity demand that is projected to constitute 66% of EU electricity by the same year. However, inadequate flexibility could potentially disrupt market prices and lead to significant curtailment of solar power in select EU nations, impeding further investments in solar energy.

To tackle these challenges head-on, the report advocates for the integration of clean flexibility options, such as grid-scale batteries and demand-side flexibility (DSF). It also underscores the importance of interconnectors, storage technologies, and the co-location of storage with renewables projects to enhance grid stability and efficiency. Projections anticipate a substantial uptick in battery capacity by 2030.

Moreover, the study highlights the critical need for balancing at the level of seconds and minutes to ensure grid safety by maintaining stable frequency. It also stresses the importance of longer-term balancing across different seasons to address variations in demand and generation patterns driven by weather changes. Cross-border interconnection and seasonal complementarity between wind and solar production are identified as strategies to balance renewable generation over longer periods, while a suite of clean flexibility options will be crucial for grid stability.

                                   Cumulative installed capacity by battery storage

Combining rooftop solar with behind-the-meter batteries is increasingly prevalent in several European countries, alleviating distribution grid congestion and enhancing household self-sufficiency in electricity consumption. However, there remains a debate on whether lithium-ion batteries can efficiently cater to longer-duration storage needs at a competitive cost, prompting further exploration into alternative technologies such as sensitive heat thermal storage, metal-anode, or flow batteries.

Ultimately, the integration of clean flexibility options not only reduces price volatility and system costs during peak times but also offers immediate cost savings for consumers. Incentivizing households to shift consumption away from peak hours through demand-side flexibility programs can lead to significant economic benefits, as evidenced by initiatives in Denmark and the UK.

Storage technologies enable electricity shift high production periods

While grids facilitate the movement of electricity across geographies, storage technologies enable the shifting of electricity across time, accumulating surplus energy during periods of high production and releasing it when demand is at its peak. Lithium-ion batteries and pumped hydro storage currently dominate the EU’s storage landscape, accounting for over 95% of operating storage capacity as of 2022.