Future of Energy Storage

Energy storage is by no means a new topic of discussion, but its importance in the renewable energy mix seems to be growing year-on-year. Now, it seems that we still have a ways to go if we’re to achieve EU’s energy and climate targets, namely obtaining energy security and the decarbonization of the sector. Are we up to the task? It remains to be seen. However, there are several projects worth mentioning, a number of ongoing investments that require more press time and a couple of laws that we have to change in order to streamline the process. Let’s see what’s what!

 

Directives

As mentioned above, Europe’s goal is to store energy so that it can be used at a later date, where and when it is more needed. Still, in order to rapidly deploy an increased share of renewable energy resources, we’ll require a bit more flexibility in adapting to the grid’s ever-changing needs. The solutions would then adjust demand and supply via storing excess electricity in large quantities over diverse time periods.

As we speak, Europe’s main energy storage method is ‘pumped hydro’ storage. At the same time, we’re seeing more and more emerging battery storage projects and a variety of newer technologies which are quickly becoming competitive on the market.

Taking into account the EU Commission’s recommendations on energy storage, the members should seriously consider the ‘consumer-producer’ double role by applying the regulatory framework provided by the Union and eliminating any barriers, such as double taxation.

If we’re talking about financing, the goal should be the increase of both predictability of revenues and long-term visibility for investments, for example by allowing storage operators to receive remunerations for specific services provided at present. Competitive bidding procedures are among the other instruments which were mentioned in the official recommendations.

In what pertains to batteries, the new regulation, entered into effect on the 17th of August 2023, stipulated that they should be collected, reused and recycled. By 2025, the new standard will be represented by declaration requirements, performance classes and new maximum limits on the carbon footprint of EVs, scooters, e-bikes and rechargeable industrial batteries. By 2027, consumers should be able to replace and remove portable batteries at any point of the life cycle.

According to estimations by the EU, the share of renewable energy in the electricity system is estimated to reach approximately 69% by 2030 and as much as 80% come 2050.

For this, EU countries will require both a resilient industrial value chain for energy storage tech, but also quick implementation of the following strategies:

• Identify capacity needs for energy storage technologies and potential financing gaps.
• Take the necessary actions to remove barriers to the deployment of demand response, as well as behind-the-meter storage.
• Establish cost-effective processes.
• Fast track the deployment of storage facilities and other such flexibility tools in remote areas, which feature insufficient or unstable grid capacity.
• Support efforts in the research and innovation space, with an emphasis on long-term energy storage. Also worth mentioning: the launching of technology accelerator programs, along dedicated support schemes.

As such, all member states can facilitate flexible resources that boost the intermittent renewable production cycle, while addressing the specific blocking points for energy storage.

It’s highly expected that the list of storage applications will continue to develop in the coming years, as most storage facilities will need to provide several services if they are to compete on the market. Right now, the main application of said services lies with:

• Generation support services & bulk storage services
• Services that support the transmission infrastructure
• Services that support the distribution infrastructure
• Ancillary services
• Services that support behind the meter energy management

On 18 October 2024, The Energy Storage Global Conference 2024 was organized by The European Association for Storage of Energy (EASE), and over 400 energy storage stakeholders gathered to discuss the next steps required in technologies, markets and support policies.

According to David Post, EASE President and Head of Global Integrated BD at Enel X, Europe’s investment in energy storage will only go up in the following years: “We’re witnessing unprecedented levels of investment, with countries betting big on energy storage as a key enabler of the energy transition,” he said. “As costs continue to decline, the potential for energy storage by 2030 is truly transformative.”

Of course, significant progress has been made in matters of regulatory hurdles, but issues pertaining to market design, permitting delays and financing still pester the sector in Europe. As such, public support will be key moving forward, but only if it will complement regulatory reforms, not replace them.

INVESTMENTS IN ROMANIA

Looking inwardly, these are the most noteworthy investments on the local market.

 

The largest electricity storage capacity installed and produced in Romania

Inaugurated by the Monsson Group in Constanta County, based on a battery system developed by PRIME Batteries Technology. This is only the first hybrid photovoltaic-wind-battery project, within the Mireasa Wind Park, boasting a full capacity of 50 MW. The storage system is installed next to the Galbiori solar park, and it’s expected to be fully connected to the gird by the end of 2024. The unit has an installed power of 24 MWh – (6MWx4h). This is a unique project, pending patent, which uses batteries produced locally by a Romanian company.

The storage unit will be charged with energy produced by the existing operational 50 MW Mireasa Wind Farm, with photovoltaic energy produced by the 35MW Galbiori 2 photovoltaic park. The national grid will also be used when there is no wind or sun to power the system.

Control of the hybrid project is fully automated remotely, without local operational staff, and will function in an integrated system through proprietary software developed by Monsson.

Romanian company Prime is one of the leading producers of energy storage solutions in the European Union. The company was founded in 2016 and is based in Bucharest. With over 37 years of cumulative experience in the Li-ion battery business, the company is focused on adding value in the energy storage solutions industry.

 

Energy storage projects developed by Simtel and Monsson

Smitel and Monsson teamed up, based on a strategic partnership aimed at developing, constructing and selling voltaic and/or hybrid projects with a total installed capacity of approximately 150 MWp. What’s more, this initiative also aims at developing energy storage solutions with a capacity of up to 120 MWh. To execute these projects, the two companies intend to utilize their own financial resources, bank financing, and other funding sources such as green bonds and European funds.

“The partnership between Simtel and Monsson marks a significant step towards accelerating the green energy transition at the national level. Together, we will combine our extensive resources and expertise to deliver projects that will contribute to reducing carbon emissions and enhancing Romania’s energy independence. This partnership complements the strategy we have defined for the 2025–2030 period, during which we are committed to implementing 500 MWp of green energy production capacity and expanding energy storage infrastructure by 300 MWh,” stated Ana Nedea, Director of Strategy and Business Development at Simtel.

The two companies will use an integrated model that covers the full project life cycle, including planning and development, construction, sale and in exceptional cases, long-term operation. This integrated approach allows the two companies to ensure efficiency, reliability, and innovation in every project.

By implementing renewable energy projects, Simtel and Monsson will support national carbon emission reduction goals, in line with Romania’s commitments to the European Union and international environmental agreements.

With more than 20 years worth of experience on the Romanian renewable energy market, Monsson is the leading supplier of renewable electricity through a portfolio of over 5 GW of wind and photovoltaic projects. The company has recently expanded its activities by developing energy storage solutions, offering investors turnkey options for continuous renewable electricity generation through hybrid projects that incorporate water-cooled storage solutions and European components, while also providing turnkey services for the construction and operation of said systems.

Simtel is a Romanian-founded group, focused on technology, engineering, and innovation, with a global vision. The group offers companies and organizations complete solutions and integrated ecosystems, from consulting, permitting, design, engineering, and construction, to maintenance, operation, measurement, control, and energy supply. Their 360° expertise covers the photovoltaic power plants, telecommunications, energy storage systems, as well as the development of software platforms and robotic process automation, aimed at optimizing all resources and increasing efficiency.

 

The Power Cube 150, a versatile solution aimed at energy storage and charging electric cars

Another entry from Prime Batteries Technology, this time in collaboration with Eldrive Romania and Allspark Energy: The “Energy Cube”. This latest offering can power electric cars using energy captured from the grid or photovoltaic panels, making it ideal for when the energy grid is lacking.

Its use is similar to the principle of harvesting and using rainwater, as in the Cube can capture and store energy from the grid, with low and constant consumption, to protect the electrical systems in the area. When charging an electric car, you benefit from high charging power – up to 150 kW – without affecting the energy grid. This makes the technology great for hostels, hotels, gas stations and other such businesses which often do not feature sufficient installed power to ensure normal operations.

According to Vicentiu Ciobanu, Co-Founder and CEO of Prime Batteries Technology: “Prime Batteries Technology manufactures batteries for applications ranging from storage for the national energy system to traction batteries for self-driving cars and is the largest manufacturer of Li-Ion batteries in South-East Europe. With the launch of the Power Cube 150 we are also pioneering in this direction of integrated solutions dedicated to energy storage from multiple sources. By collaborating with Eldrive Romania we bring, store and deliver energy where it is needed, facilitating the transition to electric mobility, but also to the notion of dispatchable consumer. The product is the first in a series that we will develop together with Allspark Energy in the field of small and large capacity, widely applicable storage, which are essential to ensure the transition to a green and, above all, circular economy.”

Vicentiu Ciobanu has also presented an update on the Prime Batteries Gigafactory and next-generation cell technology, which is fast-tracked for mass production as early as next year. This ambitious project located near Bucharest will offer a 2 GWh capacity that will support sustainable energy solutions for residential, as well as industrial use.

 

Simtel and Prime Batteries Tech Partnership: Energy Storage Project for Romanian Prodromu Skete

In another interesting collaboration, Prime and Simtel aim at increasing energy efficiency, reduce costs, and accelerate the implementation of sustainable projects, both in Romania and across Europe, with their first joint project being a storage system powered by solar energy at the Romanian Prodromu Skete, located on Mount Athos, Greece.

This is but the first phase in a larger project: as of right now, Simtel has integrated Prime’s batteries into a system that includes renewable energy production from 100 kWp photovoltaic panels and batteries with a total 512.4 kWh (0.5 MWh) capacity. The system uses off-grid Victron inverters, provided by the Romanian company Darcom Energy.

This system also integrates three existing diesel generators, which can operate alternately or simultaneously, providing flexibility and ensuring energy supply continuity when needed.

 

OMV Petrom Awards EPCC Contract for Its First Large PV Project

OMV Petrom signed an EPCC – Engineering & Design, Procurement, Execution & Commissioning – type contract for the Isalnita solar project. The contract includes the construction of the photovoltaic park, the 110 kV power station for connection to the grid, as well as the operation and maintenance for a period of 2 years from commissioning.

Also, as part of the call for projects within Romania’s National Recovery and Resilience Plan (PNRR), OMV Petrom has submitted a project to build a Battery Energy Storage System with a storage capacity of 36 MWh and a power injection into the grid of 18 MW. If successful, the system is to be installed within the Isalnita park.

 

In other news

• Romania’s Ministry of Energy approved a new state funded aid mechanism in order to support investments in storage capacities (batteries), that will support up to 100% of investments costs, operating costs not included, through EU’s Modernization Fund. Several bids can be put forward by the same company, while taking into account that the maximum value per company will not exceed EUR 10,000,000. The total value of the aid scheme is EUR 150,000,000, based on several eligibility criteria.
• Public Power Corp. based in Greece has acquired a storage facility of MW and 6 MWh.
• Swiss firm AOT Energy has a 2 MW – 1 MWh system in Arad.
• Megalodon Storage operates a standalone BESS of 7 MW and 6 MWh close to Bucharest.
• Portuguese company EDPR Romania owns 1.2 MW and 1 MWh in Cobadin, Constanta County.
• Renovatio Trading and Electrica received EUR 3 million and EUR 3.4 million for battery storage projects in Romania, with the grants coming from the EU’s Recovery and Resilience Facility and the National Recovery and Resilience Plan.

 

Amenable Laws

Are there any changes that we could be implementing in order to push things forward? Romanian Minister of Energy, Sebastian-Ioan Burduja, seems to think so. He’s recently launched the draft for an Emergency Ordinance that should amend and supplement the current legislative framework, namely Law no. 123/2012 and Law no. 220/2008. The former focuses on Electricity and Natural Gas, while the latter deals with promotion of energy production from renewable sources. Apart from creating a sustainable framework for energy storage capacities development, these new policies should establish the national public interest regime for power generation projects. Last, but not least, the implementation of cyber audit measures regarding the security of photovoltaic infrastructures has been mentioned.

This ordinance should also provide the regulation for PSH storing technologies, as short-term and seasonal storage (via batteries too) is proving vital for the stability of our national system. Some energy infrastructure work will also be regarded as being of national importance, which should allow policymakers to grant tax incentives. Regarding the cyber audits, this measure should protect the national infrastructure from digital vulnerabilities.

According to Energy Minister, our country is in the process of taking a decisive step towards a secure and sustainable energy future, while strengthening the green transition efforts, as energy transition is currently a national emergency.

To sum it all up, it looks like some of the most important future deals will include investments in pumped storage hydropower plants and electricity storage. Will the trend continue in the following years? Remains to be seen. At least we’re setting up the right conditions.