Page 47 - European Energy Innovation - Winter 2016 publication
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Winter 2016 European Energy Innovation        47

                                                     BATTERY STORAGE

legislator, “‘energy storage’ means,      On the negative side, the Commission
in the electricity system, deferring      also stated that Transmission System
an amount of the electricity that was     Operators (TSOs) and Distribution
generated to the moment of use,           System Operators (DSOs) shall not
either as final energy or converted       be allowed to own, develop, manage
into another energy carrier”. This        or operate energy storage facilities.
definition finally recognizes the         Exceptions to this rule are included in
existence and relevance of storage        case of market failures. However, this
for the electricity system and it is a    provision could limit the market potential
first step towards the establishment      and full deployment of batteries.
of energy storage as a separate
component of the energy system            Grid operators have a clear interest
(besides generation, transmission/        in directly operating storage systems
distribution and consumption) with its    to balance the grid, and having direct
own characteristics and properties.       control over them would allow a
                                          safer and prompter balancing of the
Another extremely important decision      electricity grid. A “build or buy” choice
is the proposal to remove discriminative  would have been preferable, allowing
network tariffs against energy storage.   grid operators to procure system
Storage systems take electricity from     flexibility services from storage facilities
the grid when they are charging and       in the market or fulfil their needs
inject electricity into the grid when     themselves, depending on case by
they discharge. However, since some       case situations. The creation of a proper
member states impose taxation on both     market for storage services, allowing
generation and consumption, storage       also small players to participate on an
system owners often have to pay           equal stand, individually or through
double grid fees. The proposal of the     aggregation, is anyway a positive news
Commission is the first step towards the  of the package.
elimination of these unnecessary and
unjustified double grid fees.             Overall, and despite some
                                          shortcomings, EUROBAT members
It is also important that all market      are convinced that the European
participants shall be financially         Commission has decided to take the
responsible for imbalances they cause     right decisions to stimulate the creation
in the system, thus incentivizing the     of a proper market for advanced
providers of flexibility services such    batteries for energy storage. Also the
as battery energy storage. Electricity    measures to promote the deployment
prices actually reflecting actual demand  of hybrid and electric vehicles go in the
and supply will be important tools to     right direction. It will be important that
send correct market signals prices for    in the coming months the European
demand-response, smart appliances         institutions will keep working to
(including electric and hybrid vehicles   promote the role and competitiveness
and motive power batteries) and           of European battery producers, to keep
storage solutions like batteries and      the production of such a key enabling
would generally act as a critically       technology in Europe and take full
important tool for ensuring flexibility.  advantage of the battery revolution. l
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