EUROPE ENERGY STORAGE MARKET
- The Europe Energy Storage Market was estimated to be € XX Billion in 2022 and is expected to reach €XX Billion in 2030 at a CAGR of XX% from 2022-2030
- Over the next decade, the top 10 countries in Europe will add 73 GWh of energy storage, amounting to 90% of new deployments.
- In UK, falling installation costs and a rising gap between the electricity retail price and the export rate along with the introduction of new tariffs structure sped up the residential battery storage installation
- Germany’s current geography has restricted the possibility of new pumped storage capacity. This has led to the a mandatory switch to alternate storage technologies
- According to the European Association for Storage of Energy (EASE), the EU will need 200 GW of energy storage by the end of the decade and 600 GW by 2050.
- In 2022 alone, European grid-scale energy storage demand will see a mighty 97% year-on-year growth, deploying 2.8GW/3.3GWh.
- Currently in UK – 760MW pipeline of grid-scale battery energy storage (BESS) projects planned to be delivered by the end of 2026, including 90MW that is already energised and a further 150MW under construction
- Bridge is a European Commission initiative that unites smart grids, energy storage, islands and digitisation projects funded under Horizon 2020
- In July 2022, Portugal and Switzerland launched their new pumped storage hydropower plants with capacity of over 2 GW in total
- Currently, >90% of the energy storage in Europe is carried out by Mechanical process. Pump Hydro Storage is the preferred choice due to low initial cost. Flywheel type is the other mechanical type present in negligible numbers
- UK is the leader in the deployment of battery energy storage solutions. UK accounted for more than 60% of the overall operational electrochemical energy storage setups
- Germany has lofty ambitions for reaching zero greenhouse gas emissions by 2045; renewable energy storage is expected to become significantly more essential in Germany.
- The top 5 players in the European Energy Storage Market are ENEL, EDF, Iberdrola, Engie and Statera(Battery) . The total installed power capacity of these operators was ~XXGW in 2021
Energy storage is the collection of energy produced at one moment for usage at a subsequent period in order to mitigate energy demand-supply mismatches. An accumulation, often known as a battery, is a device that stores energy.
Radiation, chemical, gravitational potential, electrical potential, electricity, elevated temperature, heating value, and kinetic energy are all kinds of energy. These may also balance microgrids to ensure that generation and load are in sync. Storage systems can offer frequency control to keep the network’s load and power generated in equilibrium.
The use and electricity production must be exactly balanced. This balance must be maintained in all electrical systems to ensure a steady and efficient and convenient. Energy storage can help to strengthen changes in demand and supply by allowing substantial amounts of extra power to be preserved.
With the energy system depending much more on alternatives, electrical power demand is growing. As a result, battery storage will be critical in the transformation to a carbon-neutral industry.
Originally, energy storage systems were utilized primarily network stabilization in Europe, restricting potential usage to certain operations or as associations to renewable generation assets.
Hydrogen can be used as a propellant and an energy carrier to produce and transport enormous amounts of sustainable power across extended durations, making it an essential player in the clean energy transition. Constant R&D is essential to ensure that hydrogen technologies are technically advanced.
EUROPE ENERGY STORAGE MARKET DEVELOPMENTS AND INNOVATIONS
Trafigura Group announced the first live project by Nala Renewables, its newly formed joint venture company with IFM Investors.
An investment of up to EUR30 million will be made to develop one of Belgium’s largest Battery Energy Storage Systems (“BESS”) at Nyrstar’s zinc smelting facility in Balen.
This energy storage project in Balen will be a lithium-ion battery storage system of 100 MWh.
Fluence announced details of a 75 MW / 150 MWh energy storage solution at ESB’s plant in Poolbeg in Dublin and a 30 MW / 60 MWh project at a second ESB plant at South Wall in Dublin.
The project aims to replace many grid services that would otherwise be powered by fossil fuels.
|S No||Overview of Development||Development Detailing||Region of Development||Possible Future Outcomes|
|1||Wärtsilä claims 48MWh Netherlands BESS will be Europe’s first large-scale LFP battery project||The largest battery energy storage system (BESS) project in the Netherlands so far will also be Europe’s first large-scale grid storage project to use lithium iron phosphate (LFP) battery technology, technology provider Wärtsilä has claimed.||Europe||This would enhance better Technologies and production|
EUROPE ENERGY STORAGE MARKET DYNAMICS
|1||August 2021||The Volkswagen Group||The Volkswagen Group entered into three more strategic partnerships with Umicore, 24M Technologies, and Vulcan Energy Resources Ltd to industrialize the battery technology and the volume production of even more sustainable, cutting-edge batteries.|
|2||February 2021||Centrica Business Solutions||Centrica Business Solutions partnered with Alfen for the supply of sub 10MW battery energy storage solutions. This three-year framework agreement further expands Alfen’s collaboration with Centrica after the recent framework agreement to supply charge points for Centrica and its subsidiary British Gas.|
|3||November 2020||Panasonic, Equinor and Hydro||Panasonic, Equinor and Hydro signed a Memorandum of Understanding (MoU) to form a strategic partnership to assess the market for lithium-ion batteries in Europe and mature the business case for a green battery business.|
|4||November 2019||The Consortium for Battery Innovation & Eurobat||The Consortium for Battery Innovation signed a memorandum of understanding with EUROBAT to channelize research and development into innovative battery energy storage systems which are critical to achieving the EU’s low carbon ambitions as part of a European Green Deal.|
Battery packs are predicted to become the largest segment in Europe’s energy storage market over the forecast period.
Furthermore, there is significant growth potential in this area for the market, which is utilized to manage frequency and voltage, decrease peak demand charges, integrate renewable sources, and offer back – up systems. The European energy storage market is predicted to be driven by factors such as falling lithium-ion battery prices, wider application range, better acceptance, and rising need for continuous power supply.
Furthermore, the rising renewable energy industry, particularly necessitates a greater requirement for storing energy, is likely to propel the market forward. Nevertheless, a demand-supply imbalance in raw resources, including a scarcity of minerals necessary for lithium-ion batteries, is projected to limit the expansion of the industry.
The Clean Energy Package (CEP), published by the European Commission on November 30, 2016, is perhaps the most significant upgrade to the European Union (EU) electricity markets. There were eight legislative initiatives which seem to have become law.
The Renewable Energy Commission (which establishes objectives for renewable power), the Energy Guideline, and the Electricity Regulation Directive are by far the most critical ones in terms of energy stockpiling. This law is significant because it will boost the usage of fluctuating renewable energy sources, increasing demand for storage equipment, and thereby enlarging the energy storage industry.
This regulation will take the place of prior regulations and will go into effect on December 31, 2020. It establishes standards for electricity storage in order to provide equitable access to protected infrastructure including all market players and to promote the effective and efficient use of energy storage sites.
Malta’s pumped heat electricity storage solution will participate in the European Innovation Fund’s Sun2Store project in which a 1,000MWh/ten-hour duration energy storage system will be developed in Spain
Hydrogen plays a big role in the RePower EU plan, which calls for a target of 10 million tonnes of domestic renewable hydrogen production and 10 million tonnes of imports by 2030.
The EU appears to recognise that hydrogen will be best used to replace natural gas, coal and oil in hard-to-abate industrial sectors and for transportation.
EUROPE ENERGY STORAGE MARKET SEGMENTATION
The Europe Energy Storage Market can be segmented into following categories for further analysis.
By Regional Classification
- United Kingdom
- Rest of the European Countries
- Commercial & Industrial Application
- Residential Application
- Mechanical Storage
- Electrochemical Storage
- Thermal Storage
- Chemical & Others
By Technology Type
- Grid Storage
EUROPE ENERGY STORAGE MARKET RECENT ACQUISITION
The 25MW/100MWh grid-scale battery energy storage system (BESS) in Ruien, Belgium, has reached its financial close, according to Nippon Koei Co. Limited, a Japanese publicly traded company, and Aquila Capital, a sustainable investment management and asset development firm with headquarters in Hamburg, Germany.
One of the first projects of this kind in Europe that complies with all applicable ESG requirements and has a significant emphasis on sustainable construction and operation is the BESS, which was developed by Nippon Koei Co. Limited, the project’s primary developer, and Aquila Capital.
YUSO BV, the project’s initiator and co-developer with Nippon Koei, has been chosen as the BESS’s optimizer. The project is anticipated to be finished in Q4 and will be the largest BESS unit in the EU with a four-hour length that is connected to the high-voltage grid of Belgium.
The initiative aims to operate on the short-term electricity markets as well as provide ancillary services to the Belgian HV grid. The project, which will be implemented on the site of a former coal-fired power station with an 800 MW capacity, serves as a solid illustration of how to further the energy transition by integrating flexible BESS assets into a market with a high level of renewable energy output.
RECENT TECHNOLOGICAL TRENDS IN EUROPE ENERGY STORAGE MARKET
|1||January 2022||TotalEnergies||TotalEnergies launched France’s largest battery-based energy storage facility which is made up of 27 containers of 2.5 MWh and boasts a power capacity of 61 MW and a total storage capacity of 61 megawatt hours.|
|2||October 2021||Centrica Business Solutions||Centrica Business Solutions established a team to develop large scale, grid-connected solar and battery storage assets in the UK and Europe.|
|3||October 2021||Trina Storage||Trina Storage launched its new lithium iron phosphate (LFP) utility-scale battery storage cabinet, Elementa, a fully-integrated and modular energy storage solution, designed for plug and play installation with less cabling required and easier logistics than some of its competitors.|
|4||May 2019||Sungrow||Sungrow unveiled the world’s most powerful 1500Vdc string inverter SG250HX with a high capacity of 250kW.|
Scientists and politicians are increasingly turning their attention to energy storage technologies in response to rising worries about just the environmental consequences of fossil energy as well as the capability and robustness of electricity systems around the world.
As energy storage devices, it may be used to the variety of applications with varying power and energy requirements. Indeed, energy storage can assist in addressing the intermittent nature of solar and wind generation.
Coal and oil are by far the most often utilized kind of energy, in part because of inherent mobility and the practicality of their stored form, which offers manufacturers significant control over the amount of energy supplied.
The technological integrations have been focused on complicated and motor-based assistance within the bearings. To avoid gravity’s impact, modern high-tech flywheels are manufactured with the disc coupled to the rotor in an upright posture.
They are charged by a simple electric motor that also functions as a generator when discharging. When it comes to efficiency, nevertheless, things become more problematic since, according to physics, they will ultimately have to cope with friction during operation.
This would be primarily achieved by two parameters: one of which is to allow the disc to spin in a vacuum, eliminating air friction and the second is to support the spinning rotor on permanent and electromagnetic bearings, allowing it to hover. This storage system has various benefits over others, the most significant of which is its reduced maintenance expenses.
The other technology is to have a superconducting magnetic energy storage technology, wherein most substances eliminate all electric resistance at very low temperatures and so become superconducting. This effect is used by the superconducting magnetic storage system (SMES) to store electrical energy with nearly minimized energy dissipation.
The Pillswood project, which is regarded as Europe’s new largest Battery Energy Storage System (BESS) by capacity, has officially begun, according to a statement from Harmony Energy Income Trust.
The station, which is in Cottingham, East Yorkshire, United Kingdom, has been successfully powered on and will now “offer crucial balancing services” to the electrical grid network. This will also make it possible to continue replacing fossil fuel power plants with renewable energy sources.
The Pillswood project, according to Harmony Energy Limited, has a power output of up to 98 MW and an energy storage capacity of up to 196 MWh, translating to a two-hour supply of power at full capacity (or longer at lower power).
The BESS uses Tesla Megapack blocks, which have a capacity of around 3 MWh apiece. This once again demonstrates the significant influence Tesla has in Europe, not just in the automotive industry but also in the power generation industry. Tesla provides its Autobidder trading tool in addition to batteries.
This is due to the fact that energy storage systems are essential for enabling the integration of renewables and creating a safe, low-emission, and cost-effective energy system.
AUTEL (AUTEL EUROPE GmbH) introduced its innovative energy storage solutions for energy storage systems, business and industrial applications, and residential usage. In order to tackle the major issues facing the business, Autel delivers the lowest Levelized Cost of Electricity (LCOE) with increased safety.
The Autel Hybrid Inverter and the Autel ESS All-in-one are two products in the energy storage line. It offers the most secure method of continuously powering your house. With inherent solid state capacitor, fuse-free design, and arc fault circuit breaker (AFCI) features for long life and safety, it switches on/off the grid in 4 milliseconds to maintain power to important loads and supports diesel generators to assure 24/7 uninterrupted power supply.
Nanotech Energy Europe B.V., a wholly owned subsidiary of Nanotech Energy Inc., today announced that it has signed a master purchase agreement to provide Smile Energy in Athens, Greece, with 1+ GWh scale BESS (battery energy storage systems).
This transaction demonstrates the critical importance of Nanotech’s secure, long-cycle-life graphene battery to the energy storage industry. Through a partnership with Smile Energy, Nanotech will be able to expand its energy storage business right away to an area that has committed to building the best solar infrastructure in the world.
Together, Nanotech and Smile will be crucial in helping Greece and the surrounding area take the necessary actions to maintain the resilience of their infrastructure and the continuity of their energy supply.
To deal with rising environmental degradation, all globe’s power generation gradually shifted to less damaging forms of energy generation during the previous decade.
Alternative power sources, including coal and nuclear energy, have begun to lose favour because there are best opportunities which minimize emissions of greenhouse gases without sacrificing power production. Alternative energy sources have become more common as methods of energy production, yet both are inconsistent.
Despite the fact that the market rose, it is important to note that there was a drop owing to a delay in large-scale initiatives to retain sustainable energy. Government planning authorization is required for these projects to proceed, which requires effort.
Wartsila is a leading developer of the energy storage systems and integrations in the European market wherein the focus has been on developing large storage farms classified under differential storage classes of operations. It has been operating various classes and technologies of energy storage systems in the market.
The sophisticated GEMS Digital Energy Infrastructure from Wartsila is a smart software platform that monitors, regulates, as well as optimizes energy resources at the facility and portfolios stages. GEMS improves operational efficiency whilst lowering expenses.
GEMS additionally constantly responds to changes in the marketplace, ensuring the long-term viability of the generation resources. Grid Solv Quantum by Wartsila is a fully integrated energy storage solution.
The flexible as well as expandable architecture allows for easy implementation and long-term power optimization. The technology promotes storage integration into power grids and indeed the expansion of alternatives while maintaining the cheapest lifespan expenses and minimum network design.
Faradion is also a leading implementer and storage solutions expert in the market. They have been focusing on integrated efforts towards better high energy density storage technologies alongside other mass productivity analysis.
Because of its higher power density by weight and volume, along with safety and economic improvements, Na-ion battery packs are especially suited for stationary storage applications over a wide temperature range.
Because sodium-ion cells may be transported fully levered (zero volts), these can also be used in distant places and applications, including offshore, where shipping battery packs is forbidden or dangerous, such as by air.
In 10Ah pouch cells, these experimental cells have an energy density of more than 140 to 145 Wh/kg and a design performance of 150 to 155 Wh/kg. Latest cell architectures potentially achieve gravimetric and volumetric energy densities equivalent to rechargeable batteries and significantly higher than lead – acid batteries.