Opinion of the European Economic and Social Committee on ‘Energy storage: a factor in integration and energy security’ (own-initiative opinion)
Date: 2015-07-01
Institutions: European Economic and Social Committee
Subjects: climate change policy, energy consumption, energy cooperation, energy production, energy research, energy storage, energy supply, soft energy








C_2015383EN.01001901.xml










17.11.2015   


EN


Official Journal of the European Union


C 383/19





Opinion of the European Economic and Social Committee on ‘Energy storage: a factor in integration and energy security’
(own-initiative opinion)
(2015/C 383/04)







Rapporteur:




Pierre-Jean COULON





On 22 January 2015, the European Economic and Social Committee, acting under Rule 29(2) of its Rules of Procedure, decided to draw up an own-initiative opinion on

Energy storage: a factor in integration and energy security.

The Section for Transport, Energy, Infrastructure and the Information Society, which was responsible for preparing the Committee’s work on the subject, adopted its opinion on 16 June 2015.
At its 509th plenary session, held on 1 and 2 July 2015 (meeting of 1 July), the European Economic and Social Committee adopted the following opinion unanimously (131 votes).
1.   Conclusions and recommendations









1.1


The EESC calls for EU climate and energy objectives to lead to a greater share of renewables in the energy mix. The Committee has consistently supported renewable energies: a sustainable system composed mostly of renewables is the only long-term solution for the future of our energy. It notes the importance of supplementing the energy system in a number of ways.












1.2


Due to their intermittent nature, renewable energies and their development pose a real challenge in terms of storage. Storage is a strategic issue for the European Union, in order to permanently guarantee the security of the EU’s supply and the viability of the energy market, both technically and in terms of cost. This explains why the issue is high on the European agenda, and why it is a priority area, particularly for the Energy Union launched in 2015.












1.3


In a previous opinion, the EESC highlighted the issue of storage, describing it as ‘a challenge, an opportunity and an absolute necessity.’ It underlines the importance of a successful energy transition in the European Union and it calls for all resources to be harnessed in order to achieve tangible, large-scale results in this area.












1.4


The EESC acknowledges that different storage solutions exist and that technologies are at different stages of technological and industrial development.












1.5


The EESC points out that — alongside its advantages — energy storage can have significant financial, as well as environmental and health costs. For this reason, it calls for impact assessments to be carried out systematically, not merely to assess the competitiveness of technologies, but also to evaluate their impact on health and the environment. The EESC also considers it important to assess the effect that these technologies have on the creation of activities and jobs.












1.6


The EESC advocates stepping up investment and research and development work in the area of storage. In addition, it calls for better European synergy in this area, in order to reduce energy transition costs, guarantee the security of supply and render the European economy competitive. The EESC supports the need for greater harmonisation of Member States’ energy storage regulations.












1.7


The EESC also calls for a Europe-wide public dialogue on energy (the European Energy Dialogue) to allow the whole of civil society to take ownership of the energy transition and to influence future decisions on energy storage technologies.












1.8


The EESC highlights the importance of gas in the energy mix and its significance in terms of energy security for the citizens. It calls for storage to be encouraged in this sector, so that all of the Member States, together, will have reserves available.




2.   Making a successful energy transition and guaranteeing energy security









2.1


Energy supply and management are major political and socioeconomic priorities, as well as key factors in ensuring a successful energy transition and tackling climate challenges. Although energy demand is falling within the EU (energy consumption has been decreasing since 2006 and we now consume roughly the same amount of energy as during the early 1990s), the growing trend towards intermittent renewable energies has increased energy storage needs. Storage will play an essential role in a number of sectors (compensating for fluctuations, electric cars, defence, etc.) and it will be a strategic concern for Europe and its industry. It should be noted that the issue of storing renewable energy is also one of the main arguments presented by opponents to this type of energy.












2.2


While the majority of primary energy sources (gas, oil or coal) can be stored easily, questions still remain regarding the size, cost and location of strategic storage facilities. The other major primary energy source, renewable energies, varies when it comes to storage. Hydropower can very often be accumulated by storing water in lakes and reservoirs. While biomass can also be stored relatively easily, solar and wind energy — normally used to generate electricity — can at present only be stored using complex, expensive intermediary processes.




3.   A priority for Europe









3.1


The European Commission has analysed the scenarios for decarbonising the energy system and in 2011 it published an Energy Roadmap 2050, which sets out various scenarios for 2050. To achieve the decarbonisation objectives set, the electricity sector would rely on a large share of renewables — between 59 and 85 % — most of which would come from variable renewable power generation. In a subsequent communication in 2014 — A policy framework for climate and energy in the period from 2020 to 2030 — the path to decarbonisation is confirmed, indicating an RES share of almost 45 % of power generation in 2030. This is in line with the targets agreed by EU leaders on 23 October 2014 as part of the 2030 policy framework. The significant share of variable RES in the electricity system would require tens or hundreds of GW of storage capacity in the electricity grid, even when other flexibility measures are employed.












3.2


Moreover, the European Commission has made storing electricity one of its priorities and has reiterated the essential role of storage. Accordingly, in its 2013 working document on energy storage (http://ec.europa.eu/energy/sites/ener/files/energy_storage.pdf), the Commission calls for better coordination between this and other key EU policies such as climate policy. Energy storage should be incorporated into, and supported by, all relevant existing and future EU energy and climate measures and legislation, including strategies on energy infrastructure. In addition, in its Communication on the Energy Union of 25 February 2015, it points out that ‘The European Union is committed to becoming the world leader in renewable energy, the global hub for developing the next generation of technically advanced and competitive renewable energies. The EU has also set an EU target of at least 27 % for the share of renewable energy consumed in the EU in 2030.’ The Commission plans to drive forward a new research and development (R) strategy, stating that: ‘if Europe (…) is to be the world number one in renewable energies, it must lead on the next generation of renewable technologies, as well as storage solutions.’












3.3


Similarly, the conclusions from the most recent Madrid Forum indicate that ‘the Forum has confirmed the strategic role that gas storage plays in ensuring a secure supply to the EU.’ The EESC also highlights the importance of encouraging the development of gas storage.




4.   Technological developments in the field of storage









4.1


Electricity storage solutions can be divided into four main categories, as depending on energy needs and constraints, energy can be stored in different forms (e.g. electricity, gas, hydrogen, heat, cold) near to production sites, on grids or near to where it will be used:






—


potential mechanical energy (hydroelectric dams, pumped-storage power plants (PSP)/marine PSPs/compressed air energy storage (CAES),










—


mechanical kinetic energy (flywheel storage),










—


electrochemical energy (cells, batteries, capacitors, hydrogen vectors),










—


thermal energy (latent or sensible heat).
















4.2


The most common form of electricity storage worldwide is pumped hydroelectric storage, such as uninterruptible power supplies (UPS). Electricity network operators, manufacturers and managers of tertiary buildings have shown a renewed interest in these systems. PSPs enable: the integration of intermittent renewable energies, particularly wind and solar energy; advanced capacity and the ability to stagger the demand for power; economic arbitration (recharging when demand and prices are low, reselling when demand and prices are high, with ‘social’ adjustment measures) and the staggering of investment in the electricity networks. However, it is unlikely that possible storage capacities will be sufficient to compensate for long periods without wind or sun in the event of large-scale expansion of these types of renewable energies.












4.3


The storage market has also seen the emergence of five new sectors which could become more widespread over the course of the next decade:






—


energy storage during industrial processes: either in thermal or chemical form. This provides the capacity to eliminate or to stagger demand in order to optimise electricity, heat and even gas consumption,










—


energy storage by linking the electricity and gas networks: via the injection of hydrogen produced from electrolysis, or by producing synthetic methane through the process of methanation (e.g. the German Energy Agency, Dena’s ‘Power to Gas’ system — www.powertogas.info),










—


electricity storage for neighbourhoods and residential buildings under smart ‘islanding’ or ‘positive energy’ initiatives (e.g. project Nicegrid in France),










—


mobile electricity storage in electric vehicles using V2G systems (vehicle to grid): Toyota, Nissan, Renault, etc.,










—


fully adjustable, variable-speed, flexible pumped-storage power plants for the balancing power market (PSP).
















4.4


It should be noted that the role of hydrogen looks promising (although its cost, and security and transport issues, diminish its potential considerably). Hydrogen is an energy vector which does not emit greenhouse gases if produced using a decarbonised source. It also has many (mainly industrial) uses, such as local electricity production (supplying isolated sites, emergency generators), energy storage (support for the network, using renewable energies) or cogeneration. It is also used in land transport (individual vehicles, public transport, heavy goods vehicles, etc.), air transport (main or auxiliary aircraft propulsion), marine or water transport (submarines, main or auxiliary propulsion), refineries and the petrochemical industry (for green hydrogen), and has other uses, in particular portable appliances (external chargers or integrated batteries). This is all currently under development.
Techniques for producing hydrogen from electrolysis and fuel cells are now very flexible and widely available, although they remain inefficient — which increases the demand for wind turbines or solar panels even further and therefore overcapacity in this area. Hydrogen is an essential energy vector in systems which make use of the flexibility between different energy networks (e.g. the Hybrid Power Plant in Berlin). Where necessary, hydrogen (‘methanised’ hydrogen) can be produced from renewable electricity to be injected into gas networks, or stored for distribution as fuel or chemical agent. It can even be re-injected as electricity. Methanised hydrogen — which has by far the greatest energy storage potential, can be transported safely and can be stored (for long periods) in current gas infrastructure (geological storage, etc.) — can also be used to form long-chain hydrocarbons (which have multiple applications: from aviation fuel to other products such as plastics, which are currently only made using fossil fuels). Moreover, the carbon ideally present in a circular economy (CO2 etc.), will be reused and will not accumulate in the atmosphere. This therefore constitutes a move from greenhouse gas production to energy production. Interest in these solutions will be further increased by the potential to make use of the heat generated by the exothermic processes of hydrogen production and producing electricity from hydrogen. Hydrogen is thus one of the rare energy vectors to enable economic, societal and environmental arbitration between the electricity market and other energies.












4.5


Another compelling example is the storage of electricity produced by solar panels during the day in a battery. The problem with solar panels installed on the roofs of houses is that they produce electricity when the house is empty. In the evening, when the occupants return, the sun has often long set and the panels no longer produce energy.












4.6


A solution seems to have been discovered and developed by a German company. The company linked components with a computer programme and an application for smartphones. Using their mobile phones, users can check the level of charge reached by the battery storing the electricity produced by the solar panels during the day. The financial calculations are enlightening: normally, household solar panels produce between 25 % and 35 % of a family’s energy requirements. With this solution, they regularly exceed 70 %. Based on current prices, a return will be made on the investment in around 8 years, and the batteries are guaranteed for 20 years.












4.7


This is also an incentive for the household production and consumption or ‘prosumer’ model that the EESC has supported in many of its opinions.












4.8


Although various solutions may therefore already exist, it seems that the potential for additional equipment is still limited. Moreover, significant barriers persist to the development of new, more flexible technologies, such as lithium-ion batteries or ‘power-to-gas’. The main drawback of these solutions is their cost and their economic competitiveness — which remain far removed from market conditions — along with the considerable size of the batteries. In its forecast, the French Environment and Energy Management Agency (Ademe) (Energy Storage Systems/Strategic Roadmap, 2011) does not envisage a boom in the stationary storage systems industry until 2030. Consultancy firm McKinsey (Battery Technology Charges Ahead, McKinsey, 2012) believes that although the price of energy storage is predicted to fall in the coming years, the scale and speed of this decline is still debatable. In its view, the cost of a lithium-ion battery could fall from USD 600/kWh to USD 200/kWh in 2020 and to USD 160/kWh in 2025.




5.   Strategic issues









5.1


The EESC points out that the need to reduce greenhouse gas emissions, along with generally dwindling fossil fuels (although new deposits have been found in recent years), has led to a growth in renewable energies, something which the EESC has supported in several opinions (TEN/564 and TEN/508). In the light of the upsurge in renewable energies, the EESC has also underlined the importance of supplementing the energy system in a number of ways, namely: extensions to transport networks, storage facilities and reserve capacity. The development of renewable energies in large quantities is a strategic issue because, while it will reduce imports (which is both an economic and ethical benefit), it requires large-scale storage facilities (which enable energy to be stored not only from day to day, but also from season to season).












5.2


The EESC therefore acknowledges that storage is the key issue facing an energy transition which includes a large proportion of intermittent renewable energies. It reiterates the need to create and increase storage capacity. It stresses that energy storage is an essential condition for reaching the EU’s overarching energy objectives, which the EESC supports, namely:






—


enhancing energy security for European citizens and businesses,










—


widespread use of renewables (evening out fluctuations without resorting to the use of fossil fuels),










—


optimising costs by bringing energy prices down.
















5.3


The EESC recognises that storing energy can have significant financial costs, as well as environmental and health costs. For example, certain underground gas storage projects counteract efforts to preserve water resources. The EESC therefore calls for improvements to be made to all technologies. The EESC believes that mass storage can be an important means of utilising the complementary nature of renewable energies. Given the short-, medium- and long-term variations in solar energy, wind power could be used as a substitute. The Committee highlights that this will lead to the creation of a network of interconnections between different electricity sources — a network that will build on smart grids. These smart grids use computer technologies which optimise energy production, distribution and consumption. The EESC supports the development of this technology as it makes it possible to manage energy demand, while stressing the importance of basing it on impact assessments carried out on the subject, respecting the freedom of each consumer. It would be even more useful to carry out a general assessment of all instruments — for example, the M/441 Mandate or the German BSI Protection Profile, which allows the secure transfer and distribution of data — to ensure the integration of Smart Homes, etc. Such an assessment could help to find specific applications which meet the future needs of Smart Cities, such as planning in accordance with weather forecasts.












5.4


The EESC highlights the importance of a European regulatory framework for energy storage, in order to be able to quantify the benefits of ‘greening’ electricity and gas networks.












5.5


Furthermore, the EESC points out that the storage market for electricity networks is growing rapidly, and has significant potential to generate economic activity and jobs, which should compensate for job losses in other energy sectors. Future investments by network operators and energy companies are motivated by the need to integrate a growing share of intermittent energy sources. In Europe, market development is underpinned by the construction of pumped-storage power plants, the renovation of existing PSP plants and the conversion of hydroelectric dams into this type of plant. Barriers to the efficiency of PSPs should therefore be reduced immediately. In order to secure the economic and environmental benefits of this technology, the necessary measures must be adopted to allow these kinds of plants to be built and operated.




6.   Enhancing research and development









6.1


The EESC notes that so far, the EU has focused spending on deploying technology rather than on R&D (Energy, a networked Europe report by Michel Derdevet, 23 February 2015). Public spending on R&D in Europe (in all sectors) is set at similar levels in real terms to the 1980s (in contrast, American and Japanese expenditure has risen), while renewable energies are booming. The SET plan (The strategic technology plan for energy), set up in 2007, failed to raise suitable funding. The various pressures on the European energy system, due to the need to integrate renewable energies and to secure Europe’s energy supply and economic competitiveness, mean that renewed European cooperation in the field of energy R&D is needed. Storage is one of the key elements of the main smart grid projects launched in 2012 and 2013, as well as a major R&D concern as regards addressing the challenges faced by tomorrow’s energy networks.












6.2


Energy storage technologies are at different stages of technological and industrial development. The EESC calls for more research and development, and for improved synergies at European level, especially since most R&D projects in Europe and worldwide are concerned with similar challenges and opportunities. The EESC has, in several opinions, expressed its regret that research activities are not geared to the issues at hand and called for them to be stepped up at European level. The Member States should also be encouraged to contribute proportionally to this effort. The EU must boost coordination and investment quickly, given the crucial role of R&D in overcoming the final technical obstacles and (through industrial storage solutions) reducing investment costs, which remain far too high. This will also enable renewable energies to be better integrated and energy transition costs to be reduced. Moreover, it will limit the impact that certain forms of energy have on health, allow the development of training and jobs in the sector, guarantee the security of the energy system and ensure the development of innovative sectors which are competitive on the international stage. Finally it will enable the European economy to be competitive.





Brussels, 1 July 2015.


The President of the European Economic and Social Committee

Henri MALOSSE