IPVEA and EUPD Offer Energy Storage Report

IPVEA and EUPD Offer Energy Storage Report

IPVEA and EUPD Offer Energy Storage Report Energy Storage Journal

Renewable Energies and Electricity Storage –Technologies and Markets is a comprehensive survey of current developments in national energy markets in Europe.

INTRODUCTION OF ELECTRICITY STORAGE TECHNOLOGIES

The scope of electricity storage is diverse ranging from electric through electrochemical to mechanical storage for different applications. But regardless of the technology all storage solutions have one thing in common – there is a need to further develop technology and expand production in order to make them economically viable. The study provides:

Overview of storage solutions according to power costs and maturity stages
Exposition of storage applications in renewable energies

ANALYSIS OF MARKET POTENTIALS IN EUROPE

The open market for PV storage solutions brings many opportunities which reveal the strength of manufacturing companies in the PV industry. The report helps better understand the potentials of this new market. The report includes:
Exposition of framework conditions in national energy markets in Europe
Scenario creation and model calculation for the market potential of PV storage solutions

Executive summary of the report

Renewable energy has seen explosive growth across Europe in the last decade and the trend is expected to continue over the coming years as Europe makes a transition away from being dependent on imported energy.
Energy 2020, a strategy for competitive, sustainable and secure energy that was adopted in 2010 by the European Commission, states a more competitive strategy to reach the goals for 2020 adopted by the European Council in 2007 (specifically, to reduce greenhouse gas emissions by 20%, to increase the share of renewable energy to 20% and to make 20% improvement in energy efficiency).
Today, the EU is on track to achieve these targets by putting in place a series of policies including the development of National Renewable Energy Action Plans (NREAP).
The growing share of renewables in the electricity generation mix, especially from fluctuating energy sources such as wind and photovoltaics (PV), brings about new challenges in electricity generation and demand dynamics. Due to such developments, it is envisaged that the electricity market across the continent will undergo a fundamental transition in the future. In order to facilitate this change, storage solutions will be required.
The field of storage technologies is broad and fragmented. Energy storage system applications are classified according to power, energy capacity, usage time and other factors. Applications include MW-scale power storage for frequency regulation, large capacity energy storage (MWh scale) for peak time demand response, and commercial/residential energy storage with medium-small capacities (kWh scale).
With the exponential growth of the PV markets globally during the last few years Europe is now set to enter into another growth cycle. Henceforth, complete solutions – including PV or other renewable energy sources combined with storage and energy management technology – both at the grid and consumer level will be required to achieve EU’s outlined 2020 goal and beyond.
In light of these future developments, the study provides insights on various aspects of storage requirements and the potential across various market segments. Furthermore, the study provides a technological overview, current manufacturing landscape of storage battery solutions and key drivers which will drive the storage battery market in the future.

TABLE OF CONTENTS

Introduction
1.          Renewable energy and the need for storage solutions
1.1        Development of renewable energy in Europe
1.2        National Renewable Energy Action Plans (NREAP)
1.3        Challenges of the electricity generation and demand
1.4        Integration of renewable energy via storage solutions
2.           Storage technologies
2.1         Technology overview
2.2         Market maturity and scope
3.            Photovoltaics and storage
3.1          PV market development in Europe
3.2          Support framework
3.3          Storage market potential in Europe
3.4          Integration of storage battery solutions with photovoltaics
3.4.1      Economic feasibility
3.4.2      Market segments
3.4.3      Country Market-Segment-Technology attractiveness matrix
4.             Manufacturers‘ landscape
5.             Storage Battery Solutions – Other applications
6.             Conclusion

Energy 2020
Energy 2020 – a strategy for competitive, sustainable and secure energy – was adopted on 10 November 2010 by the European Commission. The communication states a more competitive strategy to reach the goals for 2020 adopted by the European Council in 2007 (specifically, to reduce greenhouse gas emissions by 20%, to increase the share of renewable energy to 20% and to make 20% improvement in energy efficiency).
The strategy focuses on the following five priorities:

Achieving an energy efficient Europe
Building a truly pan-European integrated energy market
Empowering consumers and achieving the highest level of safety and security
Extending Europe‘s leadership in energy technology and innovation
Strengthening the external dimension of the EU energy market

EU electricity market: an introduction
Since 1997, the use of nuclear and coal fired power plants have seen a decline as an overall percentage of the electricity production mix. In 2008, nuclear and coal fired power plants constituted 27.78% and 16.09% respectively of the total electricity production.
On the other hand, renewable sources of energy have witnessed growth over the last few years. In 2008, wind constituted 3.52% of the total electricity production in the EU-27 countries, compared with 0.26% in 1997.

Envisioned renewable energy electricity mix as per NREAP
As per the NREAP published in 2010, Germany intends to meet its electricity production targets substantially through the addition of PV and wind capacities until 2020.
On the other hand Spain, France and the UK have envisioned investments in wind capacity in order to fulfil their electricity production goals for 2020.

Background: renewable energy – Germany
Over the last decade, the share of renewables in the three sectors of energy consumption namely electricity, heating and transport has increased significantly in Germany.
In particular, the share of renewable energy in the electricity sector has sharply increased from little over 5%+ in 2001 to over 20% in 2011.
According to German renewable energy law, known as the EEG 2012, the German government plans to extend the share of renewable energies to 35%.
By 2030 every second kWh electricity should be generated by renewable energies. The fluctuating renewable energies wind and PV showed a strong growth path reaching 7.6% (wind) and 3.1% (PV) of gross electricity generation in Germany 2011.

On a typical summer day in 2012 the installed PV capacity in Germany generated a maximum of 16GWh. To cover 10% of the daily generated PV electricity a net storage capacity of nearly 13 GWh is needed. Charging and discharging losses of 20% are expected. Storing 10% of total PV electricity will lead to a stabilised electricity supply, even at night, of 1 GWh.

Economic feasibility: storage battery plus PV system
In the case of a retrofit system:

5 kWp PV system installed in January 2010 with a 5 kWh lithium ion storage system installed in 2012.

IRR level of up to 4.3% can be attained based on outlined parameters compared to 14%+ without storage system.

 

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