In 2023, more than 500 GW of renewable energy capacity was added globally to help combat climate change. This was a more than 50% increase from the previous year and the 22nd consecutive year that renewable capacity additions have set a record. Turning to renewable energy sources such as solar and wind, however, calls into question the stability of our electricity grids.
This is what he wrote in his analysis about Euractiv Mads Lycke Andersen, Head of Technology Development at European Energy.
Because solar and wind power production varies with weather conditions and the time of day, this leads to periods of over- or under-production. This periodicity calls into question the energy reliability of the grid. If the global energy system will be 70% dependent on renewable energy sources by 2050, this challenge will become even greater.
Herein lies the crucial role of battery energy storage systems – they are not only useful, but necessary for the future stability of our energy supply. That's because mains batteries aren't just big batteries; they are sophisticated systems equipped with real-time energy monitoring and instant energy dispersal capabilities, making them ideal for managing variable energy flow.
The problem deserves to be emphasized - the lack of effective solutions to stabilize the grid will endanger the construction of renewable energy sources. This problem is already evident today, in times of negative electricity prices, which shows how renewable energy is sometimes prone to overproduction. Power producers such as European Energy were forced to curtail electricity production, resulting in large losses of renewable electricity.
By buffering the unpredictability of wind and solar power, battery storage allows for greater penetration of these sources without compromising grid integrity. Battery storage is a major factor in renewable energy generation.
When it comes to grid battery deployment, the UK is an inspiring example. Driven by its unique geographical and infrastructural context, the UK is ahead of the curve in battery storage systems being built. As an island with limited links to other countries' energy supplies, the UK has to rely heavily on domestic sources.
The batteries have become an invaluable tool for managing grid stability and resilience, demonstrating a model that other regions could copy.
Technology support
Despite the clear environmental and technical advantages of battery storage, economic uncertainty remains, particularly regarding revenue streams. This uncertainty complicates investment decisions in battery technology. Without a solid business case, the private sector will not drive the adoption of this technology.
In addition, the regulatory environment is still evolving. Stakeholders expect clearer policies that could open up new markets for storage systems, including more robust ancillary services and incentives such as preferential grid connections.
In addition, to take full advantage of batteries, policymakers should consider implementing supportive measures. These may include financial incentives to offset initial high capital costs, regulatory reforms to recognize and reward the network services provided by the systems, and investment in research and development to continue to improve the technology.
Encouragingly, some countries have begun to create frameworks that could serve as a road map. For example, California mandated its utilities to begin providing energy storage more than a decade ago. And Germany has established criteria for large grid-connected storage systems.
While much work remains to be done, they illustrate how governments can facilitate the smoother integration of renewable energy and storage systems into national grids.
The transition to a renewable energy future is inevitable, but must be supported by technologies that can ensure energy reliability and stability. Energy storage in batteries stands out as one of the most promising solutions. As such, it requires attention from policymakers, investors and the energy community.