How does solar power affect battery storage in the EU?

Years of strong solar growth and high gas prices have increased electricity price volatility across the EU, strengthening opportunities for battery storage. In turn, batteries can increase power demand at peak solar times, supporting solar revenues.

Can energy storage improve solar and wind power?

With the falling costs of solar PV and wind power technologies, the focus is increasingly moving to the next stage of the energy transition and an energy systems approach, where energy storage can help integrate higher shares of solar and wind power.

Can energy storage unlock the potential of energy storage?

The European Commission already issued guidelines for unlocking the potential of energy storage, but storage is only one tool in the flexibility toolbox. An EU action plan on electrification should include a strategy to unlock the potential of all clean flexibility sources.

Can battery storage increase solar power demand?

In turn, batteries can increase power demand at peak solar times, supporting solar revenues. If existing barriers to the deployment of battery storage are removed, countries can shift abundant and cheap solar power beyond sunny hours and reduce reliance on expensive fossil fuels.

How does price arbitrage affect battery storage?

Increased price volatility, exacerbated by years of strong solar growth and high gas prices, has increased the ability of battery storage to earn revenue through price arbitrage. In turn, batteries will increase power demand at peak solar times, supporting solar capture rates and smoothing price extremes.

What are energy storage technologies?

Energy storage technologies, store energy either as electricity or heat/cold, so it can be used at a later time. With the growth in electric vehicle sales, battery storage costs have fallen rapidly due to economies of scale and technology improvements.