A white paper proposes a major rethink for Britain and EU members, incentivising longer term energy storage to free up finances.
According to the Hydrostor and research by the Energy Storage Europe Association, Brussels could realise around €103billion in savings within the next 25 years through strategic investment in long duration energy storage (LDES). Meanwhile, Westminster could claw back around €35billion.
These figures have been calculated based on reduced expenditure on grid expansion, and cutting costs associated with stranded natural gas assets. You can read the full report – From Ambition to Action: Embedding Long Duration Storage in European Energy Strategy – here.
Key to the blueprint are three urgent policy changes which will support governments in the step change. These are:
- Undertake system modelling that factors in the costs and asset lifetimes of all types of energy storage and ensure it informs procurement and development – maximising savings while accelerating the transition to climate neutrality.
- Set procurement targets for each type of energy storage solution and create transparent, multi-year schedules to achieve them – to mitigate the risks of supply disruption and increasing costs, for curtailment and infrastructure.
- Ensure markets value LDES appropriately to guarantee revenue adequacy and adopt contract mechanisms, such as a cap-and-floor, to ensure revenue certainty for LDES projects.
‘As global momentum grows behind long-duration energy storage, Europe risks being left behind,’ said Hydrostor President, Jon Norman. States must act now to deliver projects in time to fulfill their international commitments and ambitions.
‘Failure to do so risks losing the opportunity to save billions, drive economic growth and achieve energy independence, all while lowering electricity prices and tackling climate change,’ he continued.
Image: Igor Omilaev / Unsplash
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