VILVOORDE, Belgium — Nestled behind two towering cooling structures at a decommissioned gas power facility lies a solution to one of the European Union’s pressing challenges: the alarming waste of energy resources.
A vast array of rectangular containers, each weighing 26 tons and extending into the horizon, contains lithium batteries poised to establish the largest battery storage park in Europe. This project comes at a crucial time as the EU grapples with the need to optimize its energy consumption.
Addressing energy waste and rising prices
The EU is rapidly expanding its renewable energy infrastructure, but the ability to utilize the electricity generated by wind and solar facilities remains inconsistent. In instances of low demand, excess energy goes to waste, highlighting a significant issue. Reports from Eurelectric indicate that in 2023, the EU effectively squandered approximately 0.5 percent of its total power consumption, exacerbating the struggle against soaring energy prices that are adversely affecting manufacturers.
Energy storage technologies hold the potential to mitigate price surges and assist renewable operators in managing production during periods of oversupply, a challenge that has become increasingly prevalent in Europe. Wim Alen, deputy vice president for battery storage at Engie, the utility behind the Vilvoorde project, noted that “sites like Vilvoorde can really respond to some of today’s [changing] energy demands, which will only increase throughout the energy transition.” He further added, “it will translate to cheaper bills” for businesses.
The need for strategic planning
European industries are under immense pressure, facing electrical costs that are double those of their U.S. counterparts, a situation expected to worsen this year, according to the EU’s assessments. On Wednesday, the EU plans to unveil a comprehensive strategy aimed at intertwining economic recovery with green initiatives, which will include support for energy storage developers. This draft plan promises to “contribute to lower prices for all consumers,” yet industry leaders and experts argue that more extensive measures are essential.
Jacopo Tosoni, head of policy at the European Association for Storage of Energy, emphasized the necessity of “a clear strategy.” While the EU achieved a significant milestone last year by sourcing 47 percent of its electricity from renewable sources, the challenges that accompany this success cannot be overlooked.
The volatility of solar and wind energy production introduces uncertainty into power markets, which can lead to negative power pricing during oversupply situations, as experienced 1,480 times in the previous year. Furthermore, grid operators often instruct renewable facilities to curb production to maintain balance, resulting in wasted energy.
Walburga Hemetsberger, CEO of SolarPower Europe, expressed concern over decreasing investments, stating, “new solar panel growth across the EU slid by 92 percent last year.” She warned that this trend could jeopardize the energy transition.
Sepehr Soltani, an analyst at Rystad, highlighted that the increasing importance of energy storage is directly linked to this slowdown, as it allows for efficient management of electricity supply.
Currently, Europe has around 85 gigawatts of energy storage systems in operation, a figure that needs to more than double to meet the EU’s renewable energy targets for 2030. Without significant support from Brussels, the region risks falling short of its goals.
In conclusion, as the EU strives to advance its energy storage capabilities, it must implement a cohesive set of regulations and policies to foster innovation and growth within the sector. Failure to act decisively could result in escalating costs for both industry and consumers in the long run.