In 5 years, cheap batteries as backup for smart grids

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Governments can remove unnecessary barriers to energy trade market for line – and reserve power

In five years, batteries will be a good option as a backup for the grid. The batteries are inexpensive enough to take the lead as storage systems for renewables.
Storage of energy is indispensable for a reliable and affordable energy system.

Energy storage is chasing renewables: Batteries are getting cheaper. By increasing green power, the need for spare capacity on the net is also increasing. At this moment, energy fluctuations are absorbed with gas-fired or coal plants, but batteries could soon compete with those plants.

Quotes from around the world

Lazard (Financial Times)

“(…) Batteries are still typically more expensive than peaker plants for uses such as supporting the grid at times of strain or backing up renewable energy, but Lazard expects that in five years’ time they will be generally competitive options even without any subsidies or tax breaks. (…) ‘

And Lazard is not alone.
“(…) Jim Robo, the chief executive of NextEra Energy, told a conference in September he expected that after 2020, “there may never be another peaker built in the United States”, because electricity storage would be used instead. (…) ‘

The message of Ensoc

“(…) For the primary reserve market, which was opened this year under the supervision of TenneT, a lot of companies have been entering the market.AES installs a 10MW Li-ion battery storage facility in Zeeland. The Netherlands has a lot of knowledge in energy storage systems and its applications. This is why the country installed a new Dutch trade association for energy storage Energy Storage NL. (…) ‘

Governments have to take their role

Authorities should promote research and development, particularly when it comes to costs of storage technologies and smart integration of these systems into the energy supply.

Also there is a role for government in encouraging and facilitating new business models for the use of storage.

In addition, the government can remove unnecessary barriers to energy trade market for line – and reserve power.

The government can also encourage energy behind the (smart) meter so that they are used not only serve the end user, but also help to optimize the smart grid. In this example, the price depending on time and location will be made to encourage maximum use of local renewable energy. (…) ‘


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