Energy Storage A key functionality in the energy system ENERGY STORAGE SUMMIT 11 November, 2015 Tokyo, Japan

Transcription

1 Storage A key functionality in the energy system ENERGY STORAGE SUMMIT 11 November, 2015 Tokyo, Japan Dr. Leonidas Karapiperis Minister-Counsellor Head of S&T Section Delegation of the EU to Japan

2 Major energy challenges in Europe.Import Dependency. Prices.Decarbonisation.Technology mix 2

3 System approach.an optimal energy system planning based on system approach, integrating into the electricity system.aims at:» efficiency in all sectors» Market approach with lower investment risk» Integration of variable RE» System level synergies and affordability 3

4 Union.Security of Supply.Internal Markets. Efficiency.Greenhouse Gas Emissions.Research and Innovation 4

5 Union (1) Initiatives with direct impact on energy storage Infrastructure PCI's and 10/15% interconnection Electricity market Market design and Renewables integration Retail market Demand Response and wholesale link Renewables RED 2030 and self-consumption. Regulation Review of ACER and regulatory framework Gas supply Security, LNG and storage 5

6 Union (2) Initiatives with impact on energy storage through application, emissions or technology Climate ETS and LULUCF Transport Electrification and biofuels Efficiency review of EED, EPBD and labelling Heating and cooling EU strategy. External Climate and energy policy SET-Plan and EU global technology and innovation leadership 6

7 system investment needs Total investment needs in the electricity and gas sector between : over 1 trillion Power generation: ~ 500 bn Transmission and distribution: ~ 600 bn RES: ~ bn Distribution: ~ 400 bn Transmission: ~ 200 bn NB: approximative figures, mainly from DG ENER calculations based on data from PRIMES, ENTSO-E, KEMA, ECOFYS etc.

8 EU Funding for Sustainable MFF Cohesion Policy to allocate some 38 billion (estimate!) to investments in energy efficiency, renewable energy, smart grids and urban mobility, including research and innovation in those areas in complementarity with Horizon 2020 Horizon 2020: some 5.4 billion to be allocated to research and innovation in "Secure, clean and efficient energy" Connecting Europe Facility: some 5 billion to be allocated to investments in TEN-E infrastructure of highest European added value Other European Structural and Investment (ESI) Funds: European Agricultural Fund for Rural Development (EAFRD) European Maritime and Fisheries Fund (EMFF) European Social Fund (ESF) 8 LIFE+ and COSME might also be relevant for certain aspects EEEF Regional Policy

9 "The Juncker Plan" European Fund for Strategic Investments (EFSI) Mobilise at least 315 billion in additional investment Will finance projects with a higher risk profile Established within the European Investment Bank (EIB), with the Commission as strategic partner. The proposal also sets up a European Investment Advisory Hub to help with project identification, preparation and development across the Union. A European Investment Project Pipeline will improve investors' knowledge of existing and future projects. A joint Commission-EIB Investment Task Force has already identified some 2,000 potential projects worth 1.3 trillion. Regional Policy

10 Storage Storage of Primary Resources Strategic energy reserves security of supply.regulated strategic reserves of over 90 days of oil import.on average 51 days of reserves of natural gas based on national regulations, technical and market drivers 10

11 Storage Storage of Electricity and Heat. Need to cover peak demand and surplus supply in short term Pumped hydro storage represents currently the main electricity storage option. variable renewable power generation challenges the profitability Batteries - geographically independent, fast to install, scalable and. can provide primary control Heat storage is also relevant in the shift to a low carbon economy. heat represents about half of the final energy demand For any storage technology: Important to refine the position of the various market actors Markets for the storage and flexibility services needed 11

12 Electricity Market Design Storage related issues identified Our analysis and input from various stakeholders indicates several issues related to efficient use of energy storage in the electricity system. For example:» Ownership» Access to grid» Grid fees and levies» Lack of markets for the services provided to the grid» Lack of EU level framework» Interlinks to other energy networks and sectors 12

13 A Strategic Approach to Storage. Regulatory mechanisms for making energy storage a fully-fledged component of the energy system and markets.review strategic energy reserves in line with the energy security. strategy Create links: energy storage strategic energy reserves.integrate growing shares of RES.Explore. synergies between fossil fuels and RES Balance the operation of the electricity and gas grids 13

14 Storage - analyzed Large number of studies about energy storage..the necessity of storage confirmed from electricity system point of view.business cases changing with the power generation mix.markets for storage needs review to put value on flexibility and adaptability 14

15 Electricity Market Design The public consultation.storage is explicitly included in the communication on Electricity Market Design.The new market design could impact a wide range of legislation;."regulatory barriers and discriminatory rules needs to be addressed" through new market design.storage could be considered:» as one of the enabling technologies» as source of flexibility in the grid» as a market actor and service provider 15

16 Thank You for Your Attention!