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Study on Energy Storage

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Charley Rattan's picture
Global Hydrogen Advisor and Trainer , Charley Rattan Associates

Charley Rattan, Advising and informing the global energy transition. Charley heads Charley Rattan Associates, a team of seasoned trainers and advisors driving forwards the energy...

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  • Mar 23, 2023

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Hydrogen mentioned on 80 occasions in this report:

A large number of energy storage technologies are described in this report. They comprise mechanical, electrochemical, electrical, chemical and thermal energy storage technologies and are at different levels of development. The technical parameters and costs of these technologies are still expected to develop further until 2030, showing that there is still a lot of research and development in the field of energy storage. The annual European energy storage market for stationary batteries in the electricity system has seen an increase in installed capacity from 0.6 GWh in 2015 to about 9.4 GWh in 2022. Between 2021 and 2022 the market has doubled. About 30% of the 2022 market was residential storage, roughly 2% were Commercial and Industrial (C&I) storage and about 70% front-of-meter installations.

Many new projects are announced, already under construction or submitted. The projects are concentrated on four countries: Spain, Germany, Ireland and Greece. In Germany, the three largest chemical storage plants are announced with 100 / 50 MW each. However, pumped hydro storage (PHS) plants still have a much larger capacity at about 44 GW (power) and more than 200 GWh (energy). Further PHS plants are under development to provide large-scale flexibility to absorb growing intermittent renewable electricity production. There exists also a wide variety of thermal energy storage (TES) technologies and applications, varying in temperature levels, possible sectors and technological maturity. TES forms therefore a diverse field present throughout the EU energy system, including (domestic) hot water tanks/installations, a growing front- and behind-the-meter electricity storage energy capacity reaching almost 14 GWh in 2022, almost 190 GWh of solar thermal-related TES in 2020, and 6.8 GWh of concentrated solar power-related TES. The applications in which energy storage can play a role cover a wide range from bulk storage services to services supporting behind the meter customer energy management. Energy storage has seen a strong market growth in the last years and the market is expected to grow further at a high pace. Next to energy storage, other flexibility solutions are supply-side flexibilities, interconnectors and demand side management.

Supply-side flexibilities, which will in the future be provided by renewable energy technologies, partly mean that renewable energy is not used to its full potential. Electricity storage on the other hand comes with a need for additional resources for the production of assets, and energy storage also implies losses. Interconnectors can reduce the demand for storage but have long permit and construction times. Demand side management can support the system and save costs for the user, but is also dependent on communication infrastructure and user needs. All flexibility options will be important to level supply and demand. Balancing and deploying them is one of the key challenges for the future energy system.


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