European utilities embrace and invest in energy storage

October 16, 2014

The surging international interest in energy storage is reflected at this year's European Utility Week, where Synergy Events has scheduled a three-day track devoted to educating utilities on the advantages of energy storage solutions. Synergy Event's Elly Kreijkes noted to Energy Storage Report that "there is a clear increase in energy storage project developments, driven by the development of smart-grid infrastructure and constant technological advancements in the energy storage industry." This international trend reflects the advantages of energy storage technologies such as thermal storage, batteries and pumped hydro when it comes to meeting intermittent renewable energy challenges.

Resistance turns to enthusiasm
Several factors have contributed to the rise of all types of energy storage in Europe. Increased deployment of smart grid technology, for example, has led companies to consider new regulatory frameworks regarding demand management and analyze at which level energy storage should be integrated - transmission, distribution or generation. The European Commission reports that member states are planning to install nearly 200 million electric smart meters and 45 million gas models by 2020. Total investment in energy storage by member states is expected to reach €45 billion, and investors hope to make smart meters available to 70 percent of European consumers by the end of the decade. The development of smart grid technology presents an opportunity for energy storage as the buildings get smarter.

Interest in energy storage has also been spurred on by the European Commission's own research. The organization recently put over 140 energy projects on the fast track and funded a major European energy storage company with a grant worth more than €13 million. Projects chosen and funded by the European Commission prioritized next-generation pump storage, high-tech batteries, and energy storage techniques that utilize compressed air. New technologies ready for commercial-scale deployment will receive special attention at European Utility Week.

Elly Kreijkes explained that leading European utilities are still in the midst of debating key integration details and comparing best known practices. Potential barriers for grid-scale adoption include customer engagement and ensuring existing power grids are optimized for integration with an energy storage system.

Utilities look toward the future
Another reason that energy storage is expected to continue gaining ground is the benefit of a cleaner grid. Philip Hiersemenzel, spokesperson of German battery manufacturer Younicos, explained some of the advantages of energy storage for utilities in an interview with Energy Post. He notes that even the most advanced power grids are at most able to utilize 30 percent renewable energy. Integrating the same system with energy storage solutions will allow utilities to use even more renewable energy and keep company power costs to a minimum.

Energy storage is an ideal solution for utilities as the technology allows them to improve load factors by helping to reduce the peak demand. The right energy storage technology can help utilities to cut down on expansion costs and improve their rate of kWh taken from fixed equipment. Energy storage infrastructure also helps utilities facilitate the integration of solar or wind power into the smart grid.