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Energy storage in the European Union

Grid integration of renewables

In our previous post of this blog series on Electrical Energy Storage in the EU we briefly introduced you to different technologies and their use cases. Here, we give you a short overview over the EU energy grid.  Supplying approximately 2,500 TWh annually to 450 million customers across 24 countries, the synchronous interconnected system of Continental Europe (“the Grid”) is the largest interconnected power network in the world. The Grid is made up of transmission system operators (TSOs) from 24 countries stretching from Greece to the Iberic Peninsula in the south, Denmark and Poland in the north, and up to the black sea in the east. The European Network of Transmission System Operators (ENTSO-E) serves as the central agency tasked with promoting cooperation between the TSOs from the member countries in the Grid. The ENTSO-E, in essence, acts as the central TSO for Europe. With over 140 GW of installed wind and solar PV capacity, the EU trails behind only China in installed capacity. A breakdown of the individual contributions of EU member states is shown below in the figure above.

Energy Storage in the EU

For this study a number of European countries were selected for more detailed investigation into energy storage needs. These countries were selected based on a combination of existing market size, intentions for growth in non-dispatchable renewable energy and/or energy storage, and markets with a track record of innovation in the energy sector.

On a total capacity basis (installed and planned MW) the top three energy storage markets within the EU are: Italy, the UK, and Germany. These countries were selected on the basis of these existing market sizes.

Spain and Denmark were selected based on their large amounts of existing renewable energy capacity and − in the case of Denmark − the forecasted growth in renewable energy and energy storage capacity.

While still lagging behind the rest of the EU in terms of decarbonization efforts and having a small portion of their energy from renewable sources, the Netherlands were also selected for further investigation.

Each of the selected countries (Germany, UK, Italy, Spain, Denmark, Netherlands) are discussed in the proceeding sections, providing a more detailed overview outlining their current electricity portfolios and decarbonization efforts, current energy storage statistics, and a brief discussion on market outlook.

Pumped Hydro Storage

With over 183 GW of installed capacity worldwide, pumped hydro storage is the most widely implemented and most established form of energy storage in the world. Due its extensive market penetration, technology maturity, and the fact that this blog is aimed at emerging new storage technologies, the data presented in the following posts excludes this technology.

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EU market summary for energy storage

Electrical energy storage (EES) is not only a vital component in the reliable operation of modern electrical grids, but also a focal point of the global renewable energy transition. It has been often suggested that EES technologies could be the missing piece to eliminating the technical hurdles facing the implementation of intermittent renewable energy sources. In the following blog posts, selected EES markets within the European Union will be evaluated in detail.

With over 80 MW of installed wind and solar capacity, Germany is by far the leading EU nation in the renewable energy transition. However, experts have argued that Germany’s need for widespread industrial scale energy storage is unlikely to materialize in any significant quantity for up to 20-years. This is due to a number of factors. Germany’s geographic location and abundance of connections to neighbouring power grids makes exporting any electricity fluctuations relatively easy. Additionally, when Germany reaches its 2020 targets for wind and solar capacity (46 GW and 52 GW, respectively) the supply at a given time would generally not exceed 55 GW. Nearly all of this would be consumed domestically, with no/little need for storage.

When evaluating energy storage in the UK, a different story emerges. Being an isolated island nation there is considerably more focus on energy independence to go along with their low-carbon energy goals. However, the existing regulatory environment is cumbersome, and poses barriers significant enough to substantially inhibit the transition to a low-carbon energy sector – including EES. The UK government has acknowledged the existence of regulatory barriers and pledged to address them. As part of this effort, a restructuring of their power market to a capacity-based market is already underway. The outlook for EES in the UK is promising, there is considerable pressure from not only industry, but also the public and the government to continue developing EES facilities at industrial scale.

Italy, once heavily hydro-powered, has grown to rely on natural gas, coal, and oil for 50% of it’s electricity (gas representing 34% alone). The introduction of a solar FIT in 2005 lead to significant growth in the solar industry (Italy now ranks 2nd in per capita solar capacity globally) before the program ended in July 2014. In recent years there has been notable growth in electro-chemical EES capacity (~84 MW installed), primarily driven by a single large-scale project by TERNA, Italy’s transmission system operator (TSO). This capacity has made Italy the leader in EES capacity in the EU, however the market is to-date dominated by the large TSOs.

However, the combination of a reliance on imported natural gas, over 500,000 PV systems no longer collecting FIT premiums, and increasing electricity rates presents a unique market opportunity for residential power-to-gas in Italy.
Denmark is aggressively pursing a 100-percent renewable target for all sectors by 2050. While there is still no official roadmap policy on how they will get there, they have essentially narrowed it down to one of two scenario: a biomass-based scenario, or a wind + hydrogen based scenario. Under the hydrogen-based scenario there would be widespread investment to expand wind capacity and couple this capacity with hydrogen power-to-gas systems for bulk energy storage. With the Danish expertise and embodied investment in wind energy, one would expect that the future Danish energy system would be build around this strength, and hence require significant power-to-gas investment.

The renewable energy industry in Spain has completed stagnated due to retroactive policy changes and taxes on consumption of solar generated electricity introduced in 2015. The implementation of the Royal Decree 900/2015 on self-consumption has rendered PV systems unprofitable, and added additional fees and taxes for the use of EES devices. No evidence was found to suggest a market for energy storage will materialize in Spain in the near future.

The final country investigated was the Netherlands, which has been criticized by the EU for its lack of progress on renewable energy targets. With only 10% of Dutch electricity coming from renewable sources, there is currently little demand for large-scale EES. While the Netherlands may be lagging behind on renewable electricity targets, they have been a leader in EV penetration; a trend that will continue and see 1-million EVs on Dutch roads by 2025. In parallel with the EV growth, there has been a large surge in sub-100kW Li-ion installations for storing energy at electric vehicle (EV) charging stations. It is expected that these applications will continue to be the primary focus of EES in the Netherlands.

Similar to Italy, the Dutch rely heavily on natural gas for energy within their homes. This fact, coupled with an ever-increasing focus on energy independent and efficient houses could make the Netherlands a prime market for residential power-to-gas technologies.

Read more about electrical energy storage here.

Jon Martin, 2019

(Photo: NASA)

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Wind Energy

Wind energy is short for the conversion of energy captured from wind to electrical or mechanical energy. Wind power turbines produce electrical energy and windmills produce mechanical energy. Other forms for wind energy conversion are wind pumps which use wind energy to pump water or sails which drive sail boats.

The cheapest US energy prices by source and county, Source: Energy Institute, University of Texas Austin

Since its first use on sail boats, wind energy is wide spread. Windmills have been used for more than 2,000 years as source of mechanical energy. The Scotsman James Blythe was the first who demonstrated the transformation of wind energy into electrical energy. As wind energy is a renewable source of energy, electrical energy generated by wind turbines is a clean and sustainable form of energy. Wind energy is often also cheaper than natural gas, for example throughout the entire American Midwest, as shown by the Energy Institute of University of Texas, Austin. It is therefore not surprising that wind energy is one of the fastest growing markets in the renewable energy sector worldwide. In 2015, 38% of all renewable energy in the United States and the European Union was generated by wind turbines.

Wind and solar energy production in the US and Canada in 2015. Sources: EIA, Statistics Canada

More efficient than single wind turbines is the use of wind parks where clusters of large turbines constantly generate electrical power. There are two kinds of wind parks, on-shore and off-shore wind parks. Off-shore wind parks are often more expensive but do not use valuable farmland as it is often the case for on-shore wind parks. However, wind parks on farmland can be a valuable addition for farmers seeking an extra income.

Wind and solar energy production in the European Union and the Euro-zone in 2015. WSH is the fraction of renewable energy of the European energy market. “Hydro” is the fraction of hydro power an Wasserkraft. Source, Eurostat
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Ammonia energy storage #1

The ancient, arid landscapes of Australia are not only fertile soil for huge forests and arable land. The sun shines more than in any other country. Strong winds hit the south and west coast. All in all, Australia has a renewable energy capacity of 25 terawatts, one of the highest in the world and about four times higher than the world’s installed power generation capacity. The low population density allows only little energy storage and electricity export is difficult due to the isolated location.

So far, we thought the cheapest way to store large amounts of energy was power-to-gas. But there is another way to produce carbon-free fuel: ammonia. Nitrogen gas and water are enough to make the gas. The conversion of renewable electricity into the high-energy gas, which can also be easily cooled and converted into a liquid fuel, produces a formidable carrier for hydrogen. Either ammonia or hydrogen can be used in fuel cells.

The volumetric energy density of ammonia is almost twice as high than that of liquid hydrogen. At the same time ammonia can be transported and stored easier and faster. Researchers around the world are pursuing the same vision of an “ammonia economy.” In Australia, which has long been exporting coal and natural gas, this is particularly important. This year, Australia’s Renewable Energy Agency is providing 20 million Australian dollars in funding.

Last year, an international consortium announced plans to build a $10 billion combined wind and solar plant. Although most of the 9 terawatts in the project would go through a submarine cable, part of this energy could be used to produce ammonia for long-haul transport. The process could replace the Haber-Bosch process.

Such an ammonia factories are cities of pipes and tanks and are usually situated where natural gas is available. In the Western Australian Pilbara Desert, where ferruginous rocks and the ocean meet, there is such an ammonia city. It is one of the largest and most modern ammonia plants in the world. But at the core, it’s still the same steel reactors that work after the 100 years-old ammonia recipe.

By 1909, nitrogen-fixing bacteria produced most of the ammonia on Earth. In the same year, the German scientist Fritz Haber discovered a reaction that could split the strong chemical bond of the nitrogen, (N2) with the aid of iron catalysts (magnetite) and subsequently bond the atoms with hydrogen to form ammonia. In the large, narrow steel reactors, the reaction produces 250 times the atmospheric pressure. The process was first industrialized by the German chemist Carl Bosch at BASF. It has become more efficient over time. About 60% of the introduced energy is stored in the ammonia bonds. Today, a single plant produces and delivers up to 1 million tons of ammonia per year.

Most of it is used as fertilizer. Plants use nitrogen, which is used to build up proteins and DNA, and ammonia delivers it in a bioavailable form. It is estimated that at least half of the nitrogen in the human body is synthetic ammonia.

Haber-Bosch led to a green revolution, but the process is anything but green. It requires hydrogen gas (H2), which is obtained from pressurized, heated steam from natural gas or coal. Carbon dioxide (CO2) remains behind and accounts for about half of the emissions. The second source material, N2, is recovered from the air. But the pressure needed to fuse hydrogen and nitrogen in the reactors is energy intensive, which in turn means more CO2. The emissions add up: global ammonia production consumes about 2% of energy and produces 1% of our CO2 emissions.

Our microbial electrolysis reactors convert the ammonia directly into methane gas − without the detour via hydrogen. The patent pending process is particularly suitable for removing ammonia from wastewater. Microbes living in wastewater directly oxidize the ammonia dissolved in ammonia and feed the released electrons into an electric circuit. The electricity can be collected directly, but it is more economical to produce methane gas from CO2. Using our technology, part of the CO2 is returned to the carbon cycle and contaminated wastewater is purified:

NH3 + CO2 → N2 + CH4

 

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A Brief Account of Wind Energy in the United States, Canada, and the European Union

Wind energy is short for the conversion of energy captured from wind to electrical or mechanical energy. Wind power turbines produce electrical energy and windmills produce mechanical energy. Other forms for wind energy conversion are wind pumps which use wind energy to pump water or sails which drive sail boats.

The cheapest US energy prices by source and county, Source: Energy Institute, University of Texas Austin

Since its first use on sail boats, wind energy is wide spread. Windmills have been used for more than 2,000 years as source of mechanical energy. The Scotsman James Blythe was the first who demonstrated the transformation of wind energy into electrical energy. As wind energy is a renewable source of energy, electrical energy generated by wind turbines is a clean and sustainable form of energy. Wind energy is often also cheaper than natural gas, for example throughout the entire American Midwest, as shown by the Energy Institute of University of Texas, Austin. It is therefore not surprising that wind energy is one of the fastest growing markets in the renewable energy sector worldwide. In 2015, 38% of all renewable energy in the United States and the European Union was generated by wind turbines.

Wind and solar energy production in the US and Canada in 2015. Sources: EIA, Statistics Canada

More efficient than single wind turbines is the use of wind parks where clusters of large turbines constantly generate electrical power. There are two kinds of wind parks, on-shore and off-shore wind parks. Off-shore wind parks are often more expensive but do not use valuable farmland as it is often the case for on-shore wind parks. However, wind parks on farmland can be a valuable addition for farmers seeking an extra income.

Wind and solar energy production in the European Union and the Euro-zone in 2015. WSH is the fraction of renewable energy of the European energy market. “Hydro” is the fraction of hydro power. Source, Eurostat