The consolidation of security and strategy

In Europe, the REPowerEU targets to triple the installed wind and photovoltaic generating capacity by 2030 are an ambitious aspiration to decarbonise industry, but also to achieve greater energy security for Europe.

Reaching the REPowerEU targets will require an electricity system where roughly 70% on average of the generation comes from renewable energy sources. This bounty of European renewable energy will be lost without adequate energy storage.

The arguments for energy storage are getting stronger: fossil fuelled peaking generating plants can be put into long term standby, as they can be replaced by longer duration energy storage.

storage projects are likely to be quietly proposed, developed and brought into operation.

There will be several new project announcements this year — covering a range of applications — transport, commercial customers as well as energy companies.

Expect to see as much emphasis on distributed resources as on large scale projects, as distributed storage (and generation) can do so much to improve energy security.

We have been waiting a long time, but 2023 will be the year that consolidates national and international energy security strategy with an energy storage strategy.

There will be different strategies in many countries. The American Inflation Reduction Act, with its focus on US domestic energy production and the promoting of clean energy is giving a great stimulus to many clean energy technology types, and supporting the development and deployment of energy storage.

The ability to time-shift significant quantities of renewable energy can be achieved by moving energy storage plants from the current two to four hours duration to eight to 12 or more hours.

The case for building out these longer duration plants will become more persuasive when electricity markets value longer duration energy storage, and products such as long term capacity, standby capacity and upwards and downwards regulation are introduced.

The market will move quickly, smart investors will anticipate these changes and a small, but significant group of large scale, long duration energy

We will also see more emphasis on the supply chain for energy storage. We have grown used to disruptions for semiconductor chips, critical elements for battery manufacture, and delays in constructing new battery manufacturing infrastructure. 2023 is the year when we pay more attention to the energy storage supply chain and its own sustainability index.

Energy security needs energy storage, and we will need security of energy storage.

It’s little use exchanging reliance on imported energy with imported energy storage. Flow batteries are one of the leading technologies to be capable of delivering longer energy storage solutions, that have long cycle and calendar life, have low environmental impact in their manufacture, use and disposal, and manufacturing can be quickly built in local markets, strengthening the local content and the local economy.

Terry Murphy, CEO, Hammond Group International