The large-scale storage market in Europe has begun to take shape. According to the data of the European Energy Storage Association (EASE), in 2022, the new installed capacity of energy storage in Europe will be about 4.5GW, of which the installed capacity of large-scale storage will be 2GW, accounting for 44% of the power scale. EASE predicts that in 2023, the new installed capacity of energy storage in Europe will exceed 6GW, of which large storage capacity will be at least 3.5GW, and large storage capacity will occupy an increasingly important proportion in Europe.
According to Wood Mackenzie’s forecast, by 2031, the cumulative installed capacity of large storage in Europe will reach 42GW/89GWh, with the UK, Italy, Germany, Spain and other countries leading the large storage market. The growth of renewable energy installed capacity and the gradual improvement of the revenue model have driven the development of large European reserves.
The demand for large storage capacity essentially comes from the demand for flexible resources brought about by the access of renewable energy to the grid. Under the goal of “REPower EU” to account for 45% of renewable energy installed capacity in 2030, the installed capacity of renewable energy in Europe will continue to grow, which will promote the increase of large storage installed capacity.
Large storage capacity in Europe is mainly driven by the market, and the sources of income that power stations can obtain mainly include ancillary services and peak-valley arbitrage. The working paper issued by the European Commission in early 2023 discussed that the commercial returns of the large storage systems deployed in Europe are relatively good. However, due to fluctuations in the return standards for ancillary services and the temporary uncertainty of the ancillary service market capacity, it is difficult for investors to determine the sustainability of the commercial returns of large storage power stations.
From the perspective of policy guidance, European countries will gradually promote the diversification of revenue stacking of energy storage power stations, allowing energy storage power stations to benefit from multiple channels such as ancillary services, energy and capacity markets, and promoting the deployment of large storage power stations.
In general, there are many large-scale energy storage planning projects in Europe, and their implementation remains to be seen. However, Europe took the lead in proposing the 2050 carbon neutrality goal, and energy transformation is imperative. In the case of a large number of new energy sources, energy storage is also an indispensable and important link, and the installed capacity of energy storage is expected to grow rapidly.
Post time: Jul-24-2023
