European large storage comb: Britain / Italy / Germany / Spain to lead the large industrial and commercial energy storage market
When mentioning energy storage in Europe, most people will think of household storage at the first time, and with the reduction of the cost of optical storage in 2023, the ground-based photovoltaic and large-scale industrial and commercial energy storage system market in Europe will gradually open, and the project size of the energy storage project continues to increase.
European large storage gradually start, revenue model exploration
European large storage market has begun to take shape, according to the European Energy Storage Association (EASE) data, in 2022 the European energy storage new installed capacity of about 4.5GW, of which the large storage installed capacity of 2GW, the power scale accounted for 44%. ease expects that in 2023 the European energy storage new installed capacity will be more than 6GW, of which the large storage is at least 3.5GW, the large storage will occupy an increasingly important proportion in Europe.
According to Wood Mackenzie forecast, by 2031, the cumulative installed capacity of large storage in Europe will reach 42GW/89GWh, with the UK, Italy, Germany and Spain leading the large storage market. The growth of renewable energy installed capacity and the gradual improvement of the revenue model drive the development of large storage in Europe.
Large storage installed demand essentially comes from renewable energy access to the grid brought about by the demand for flexible resources. In the "REPower EU" 2030 renewable energy installed capacity accounted for 45% of the target, renewable energy installed capacity in Europe will continue to grow, promote the large storage installed capacity.
Europe's large storage installations are mainly market-driven, and the revenue sources available to power plants mainly include ancillary services and peak/valley arbitrage. The European Commission 2023 early release of the working paper discusses, at present Europe has deployed large storage system commercial return is better, but due to the auxiliary service return standard fluctuation, auxiliary service market capacity is also not clear, the investor is difficult to determine the sustainability of the commercial return of large storage power station.
From the level of policy guidance, European countries will gradually promote energy storage power plant revenue diversification (revenue stacking), allowing energy storage power plant at the same time from the auxiliary services, energy and capacity market and other ways to benefit from, and promote the deployment of large storage power plant.
The United Kingdom leads the European large storage installation, 2023 is expected to power
The UK leads the European large storage market, with high growth in installed capacity and abundant project reserves. According to EASE data, in 2022, the UK large storage new installed capacity of 830MWh, is by far the largest annual new installed capacity, the cumulative installed capacity of 2.4GW/2.6GWh, installed capacity in Europe first.
According to Solar Media, by the end of 2022, 20.2GW of large-scale storage projects have been approved in the UK, and construction will be completed in 3-4 years; 61.5GW of energy storage systems have been planned or deployed, leaving plenty of room for growth.
The UK has a strong incentive to develop large-scale storage as it has the demand to safeguard power supply and improve grid stability. As an island country, the UK has certain limitations in its power supply capacity and grid flexibility compared with other continental European countries. On the one hand, the continuous withdrawal of coal power leads to a gap in power supply, power dependent on imports. On the other hand, wind power, photovoltaic and other fluctuating renewable energy sources on the grid to form an impact, greatly increasing the balance of the British power system costs, part of the congestion time the UK can only be forced to purchase balanced power from France, Belgium and other countries at a high price.
Carbon neutral,increase power supply capacity, while enhancing the stability of the grid under the demand, the United Kingdom in the vigorous development of renewable energy at the same time, the need to continue to promote the construction of a large storage system for renewable energy large-scale access to the power system to provide adequate support.
With the policy to promote the market mechanism molding, at present, the UK large storage return mechanism has been more perfect, large storage projects can participate in the capacity market, power market, balance of standby and FM auxiliary services market, through the benefits of superimposed to obtain a more satisfactory return.
In general, Europe's large-scale energy storage planning project is more, landing to be seen. But Europe took the lead in proposing 2050 carbon neutral goals, energy transition is imperative. In the case of a large number of new energy access, energy storage is also an important part of the essential, energy storage installations will be expected to grow rapidly.