ComTech / FORRS White Paper addressing BESS demand, market integration and software solutions
Many publications are celebrating Europe’s record-breaking year 2024 in renewable energy, with renewable sources accounting for 47% of production. This remarkable achievement solidifies Europe’s position as a global leader in the energy transition. However, this milestone also exposes significant challenges in the energy system, such as the need for additional flexibility. This need manifests in the growing number of days with negative electricity prices as well as excessive electricity prices during low-wind periods.
The need for greater system flexibility is clear. But where will this flexibility come from, and how much is truly needed?
These pressing questions are among the many explored in a joint white paper by FORRS and ComTech Advisory. The paper delves into the increasing demand for flexibility in Europe’s energy system and examines the technologies available in 2024 and beyond that can address this need effectively.
A range of technologies under consideration to enhance flexibility include demand-side management, Battery Energy Storage Systems (BESS), electric vehicle (EV) batteries, and hydrogen. Of these options, BESS currently stands out as the most viable solution to deliver much-needed flexibility to the grid.
However, the profitability of BESS depends on the type of market in which the batteries participate. The white paper provides an in-depth analysis of market access for battery project developers across various European markets, offering valuable insights into the opportunities and challenges they face.
Optimization plays a pivotal role in maximizing the profitability of BESS projects. To achieve this, technical factors such as cycle limits, warranties, and battery lifespan must be considered. There is a trade-off between maximizing short-term profits and ensuring long-term battery health. However, the value chain for batteries extends far beyond optimization alone. It encompasses multiple processes, including both planning and operations, such as data management for all relevant technical data, dispatch and optimization, forecasting and real-time trading and finally scheduling, nominations, and settlement.
The white paper emphasizes that no single solution can support all these processes. Instead, multiple tools and solutions must be integrated to ensure smooth operations and maximize the value of battery investments. Effective integration of all relevant solutions across the battery value chain is essential to unlocking the full potential of this technology.
For further details see the complete white paper (Battery Energy Storage Systems (BESS) as a Key Flexibility Provider).
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