Amsterdam, Sept. 6, 2023 - In a recent study, TenneT indicates that to ensure security of supply, it sees a need for 9GW of energy storage by 2030. According to a recent study by the economic consultancy Ecorys, such battery systems could save up to €2 billion annually for the Netherlands.
Earlier this year, national grid operator TenneT warned that, without adequate energy storage, Dutch citizens could face frequent power outages. Ecorys stated in an earlier study commissioned by the ACM what loss of welfare this could lead to. Large-scale battery systems can minimize these interruptions, adding significant social value.
Commissioned by six major battery entrepreneurs, all members of Energy Storage Netherlands (ESNL), the trade association for the Dutch energy storage sector, Ecorys conducted this follow-up study. The assignment was to investigate how much social value batteries would add in the electricity system. Ecorys concludes that the social value alone could be as much as €2 billion per year. It says: "Interruption in the supply of electricity results in loss of welfare. Companies can produce less and their equipment may suffer damage, while households have to adjust their consumption behavior. Large-scale battery systems connected to the power grid can provide electricity at times of scarcity, creating social value by increasing security of supply."
"This report shows for the first time the great social value of batteries. Let us - as in countries around us - make an exception for batteries in the transmission tariffs that financially enables the realization of batteries in the Netherlands and no longer jeopardizes our national security of supply," said Jeroen Neefs of ESNL.
"This value comes on top of the contributions that batteries make to society in the form of lower and more stable energy prices, but also because, for example, more energy from sun and wind can soon be unlocked, allowing Dutch CO2 emissions to be reduced, or that grid operators will soon pay lower procurement costs to keep the grid balanced." Aldus Jeroen Althoff (on behalf of the 6 battery developers).
- TenneT indicates that between 10 and 13 gigawatts of batteries will be needed in 2030 to keep the security of supply in the Netherlands within the set standard.
- By the end of 2023, it is estimated that "only 150 megawatts" will be operational, less than 2% of the capacity needed in 2030 for adequate security of supply.
- Based on current transmission tariffs, large-scale battery projects are expected to be virtually impossible to finance in the coming years.
- The high Dutch tariffs for batteries create an uneven playing field with neighboring countries, investors are moving away and battery capacity will hardly increase here.
Ecorys is an independent international research and consulting firm with Dutch roots, founded in 1929. Over the years, the company has specialized in economic, social and spatial development issues. Ecorys works on challenging projects for both public and private sector clients. Their multidisciplinary teams of specialists combine research, consultancy and policy advice to help clients make informed decisions. With a global network and offices in multiple countries, Ecorys provides innovative solutions in a changing world. Their ethos revolves around delivering solutions that have a positive and sustainable impact on society.
This research was commissioned by the 6 largest independent battery developers in the Netherlands (Lion Storage, GIGA Storage, Novar, Semper Power, Dispatch Grid Services and LC Energy), all members of ESNL (Energy Storage Netherlands). ESNL is the trade association of the Dutch energy storage sector. Together with technology companies, knowledge institutions, grid operators and financiers, ESNL works towards a stable, independent and sustainable energy supply. This makes Energy Storage NL the advocate, networker and knowledge center for Dutch energy storage sector.
2. https://www.acm.nl/nl/publicaties/acm-stelt-de-value-lost-load-voll-vast
