Debate: Energy storage
Date: TUESDAY, 18 APRIL 2023
Speaker: Kadri Simson
Language: EN

But the fact is that the role of storage is often overlooked. I want to give credit to this Parliament for adopting, back in July 2020, an own initiative report calling for a comprehensive European approach to storage. The Gamon report brought the storage issue into focus and set in motion a systematic work by the Commission. We examined the relevant technologies, the barriers to their deployment to market, the gaps in the regulatory framework. We looked into the best ways in which we could build on the work started in 2016 with our guiding documents and provisions in the Clean Energy Package. Today, I am delighted to present to you the results of this work and the latest set of Commission proposals on energy storage. Just one month ago, the Commission adopted a targeted proposal for the reform of electricity market design, which has, at its core, key provisions to boost advanced storage and flexibility technologies. The reform of the electricity market design strengthens flexibility services, demand response and energy storage in the electricity system with measures for Member States and system operators. For Member States, they would be required to assess the flexibility needs in the national energy systems for a period of at least five years, to move away from system flexibilities gained from fossil fuels. They would have to establish indicative national objectives, focusing especially on non—fossil flexibility technologies, such as storage and demand response. They would also have the option of introducing new support schemes, especially for non—fossil flexibility, such as demand response and storage or, when these exist, to integrate them into capacity mechanisms. For system operators, they would be able to procure flexibility services at peak hours. They could also use the data from dedicated metering devices to facilitate the active participation of demand response and storage in electricity markets. Flexibility service providers would see an evolution in the remuneration of their services through network tariffs. This would incentivise system operators to further develop innovative solutions, to optimise the existing grid and to procure flexibility services, in particular demand response. These regulatory provisions will go a long way to boosting incentives for storage, but we did not stop there. In parallel to the revision of the electricity market design, we addressed a Commission recommendation on energy storage to the Member States, because we know that a great part of the work also falls to the national level. To support this, we published a staff working document with a solid and comprehensive strategic study of the options for electricity storage and the ways to promote them, taking a technology—neutral approach. The recommendations offer proposals for Member State actions towards a greater deployment of energy storage, to provide benefits to consumers and accelerate the market for flexibility solutions. Finally, let me come to the last piece of the puzzle. On 9 March 2023, the Commission officially requested that the DSO Entity, in cooperation with ENTSO-E, start work on a new network code. This will further support the development of demand response, including rules on aggregation, energy storage and demand containment, and address remaining regulatory barriers. And it will be an important step towards the use of flexibility services, in particular by system operators. We know that storage is central to the success of our clean energy transition. We know that the time to act is now. With our latest initiatives, we set the ball rolling. We aim to shape a conducive environment for storage and flexibility solutions to develop at the pace and scale we need, but need your support to get there. I look forward to hearing your views and to having a fruitful exchange on how to do that.