EURELECTRIC Report Analyses Impact Of Decentralised Storage On Future Distribution Grids

04 July 2012 News Article

Small-scale, dispersed storage facilities could prove useful in allowing European distribution companies to better manage their networks, according to a new EURELECTRIC report. Coming just days before the European Commission plans to release its own strategic thoughts on storage, the EURELECTRIC report looks at the role of decentralised electricity storage in the electricity grid, focusing in particular on the implications for distribution system operators (DSOs). Future challenges for DSOs include increasing peak loads, stricter power quality requirements and the continuous development of distributed generation. EURELECTRIC's report shows how smart and small-scale storage could support an active network management, paving the way for cost-efficient and flexible responses to those challenges.

The EURELECTRIC paper finds that decentralised storage could play an important role within the context of tomorrow's smart grid. In a system of increasingly bi-directional power flows, electrical storage devices in the distribution grid could "smooth out" supply and demand, thereby helping to keep the system balanced. In particular, small-scale storage technologies could support and optimise the operation of the distribution grid by:

deferring upgrade costs for the system and grid assets;
improving service reliability and stability support;
allowing more recovery time for the power system during scheduled or accidental power interruptions; and
providing short-term flexibility.

The success of electricity storage will depend on the economic merits of storage technologies compared to other flexibility alternatives, most notably demand response or flexible generation. Initial R&D support is certainly needed to bring technology costs down. However, the report fully expects decentralised storage technologies to become competitive over time, as the share of renewables in the European power system increases and the advantages of electricity storage in integrating these sources become increasingly clear.

While DSOs are perhaps set to benefit most directly, decentralised storage could also prove useful to market agents. EURELECTRIC therefore encourages policymakers to assess the regulatory requirements and market design issues surrounding decentralised electricity storage and to clarify the roles and responsibilities of all actors involved.