Battery storage techniques have the potential to soak up extra, usually variable, electrical energy, thereby stopping grid congestion. While the German Federal Network Agency (Bundesnetzagentur) has established standards for giant grid-connected storage techniques as dispatchable masses below the “Use Instead of Curtailment 2.0” measure, this doesn’t precisely replicate the precise habits of enormous battery vitality storage system and subsequently too restrictive to be really efficient.
The new mannequin could also be helpful for some industrial clients, however has not but been absolutely developed for storage operators. It might be argued that the present regulatory framework, which incorporates storage techniques with greater than 100 kilowatts of redispatch energy in accordance with §13a EnWG, is enough. However, the efficient use of financial savings techniques on this context requires a basic change in current compensation mechanisms.
Grid stability
A persistent downside with the continuing vitality transition is the customarily excessive value of transmission measures as properly, which contributes to the speedy enhance in grid fees. From July 2021 to July 2023, redispatch prices fluctuated considerably, from EUR 32 to 477 million per thirty days, with a long-term upward development. Despite this, the pliability supplied by massive grid battery vitality storage techniques usually stays unused, as it’s usually cheaper to forestall (renewable) technology vegetation than to retailer electrical energy in massive batteries on the request of the grid operator.
A key criticism of the present cost-based method for storage techniques is that it creates structural incentives for cost-inflating bidding habits. Under this technique, the prices incurred in the usage of storage techniques or different energy vegetation are paid. Despite expressing issues over the last session on the redispatch cost mechanism, the Federal Network Agency has not but responded, though it has not absolutely addressed these issues.
A shocking response, because the total cost-based design of the market relies on the premise that strategic bidding might be rejected in precept. However, since this assumption can’t be assured for battery financial savings within the redispatch course of primarily based on value, and the Federal Network Agency appears to view the difficulty as of little relevance, the rationale for blocking redispatch market-based for storage techniques could also be questionable. A greater compensation mechanism for battery storage techniques is required.
Market-based redispatch can remove disincentives and allow extra environment friendly and, specifically, more cost effective use. Instead of paying the extreme prices obtained from unrealistic formulation confirmed by the Federal Network Agency, the storage techniques might be paid in accordance with their market worth for the consolation of the grid. This allows them to supply their obtainable flexibility to the grid at a decrease value, resulting in extra grid-friendly habits. This is a essential facet, as a result of battery storage operators are typically accused of their flexibility being too costly and their habits is much less grid-friendly than admitted. However, the truth that storage operators are pressured to simply accept “Cost-Plus” as an alternative of their true value base, and are usually not allowed to supply their flexibility at a decrease value, is commonly missed. -an.
A market-based method would tackle this situation by permitting battery storage techniques to scale back the price base of renewables in transport as properly. The outcome would be the strategic however inherently grid-friendly nature of those techniques, which search to anticipate grid bottlenecks, consider the worth of a grid-friendly schedule, and allocate flexibility the place it’s has the best worth – both on the native grid or on the “copper plate.”
If grid operators are allowed to forestall grid-damaging habits, resembling offloading at generation-related bottlenecks or charging at load-related bottlenecks, freed from cost, a strategic habits -bid within the sense of the horror situation of “Inc/Dec-Gaming” won’t ever be included. This is in distinction to the present “Cost-Plus” redispatch, the place there are clear incentives for “Inc/Dec-Gaming.”
Main challenges
Optimal integration of battery vitality storage techniques, together with the redispatch course of, is crucial for a profitable vitality transition. These techniques can steadiness the fluctuations of renewable vitality and enhance the steadiness and effectivity of the ability grid. However, integrating battery storage presents technical and regulatory challenges inside the redispatch course of. The dynamic nature of battery storage techniques – their state of cost and their potential to quickly swap between charging and discharging – raises new calls for on grid administration. More difficult is figuring out the misplaced further earnings and put on of the battery as a result of fixed charging and discharging. Only the storage operator really understands the precise value constructions, making a market-based redispatch mechanism important for significant storage integration. In reality, it’s the just one that meets the authorized necessities of the EU.
Due to the complexity and important potential of battery storage, the Federal Network Agency is within the highlight, going through the daunting activity of creating a system that strengthens grid stability by effectively integrating these techniques. . The German authorities has additionally emphasised the significance of storage for renewable energies and the ability grid in its just lately printed progress initiative. To seize this potential, the federal government has reaffirmed its assist for the Federal Network Agency (Bundesnetzagentur) to create long-term safety planning for storage techniques.
However, to totally notice the potential of battery storage techniques, shut collaboration between policymakers, regulatory authorities, grid operators, and storage operators is crucial. Only on this method can battery vitality storage techniques absolutely notice their position as a key vitality switch expertise and contribute to the optimization of all the energy grid.
About the writer
Benedikt Deuchert is head of enterprise improvement and regulatory affairs at Kyon Energy, one of many main builders of large-scale battery storage techniques in Germany. He is answerable for creating new enterprise fashions and main initiatives to form the regulatory atmosphere for energy grid flexibility companies generally, and for battery storage specifically.
