Corona virus has revealed a lack of investment and the big piles of the key to unlocking the solar energy and wind energy.
A drop in energy demand caused by the pandemic has left in the European electricity grids are overloaded with green electricity, increasing the threat, or power failures, and underscoring the need for energy storage to low-carbon energy system.
Europe is struggling to rid its networks of distribution of electricity and carbon emissions by mid-century. But this should be an incentive to increase the use of batteries is not happening nearly fast enough, with facilities to file last year, according to BloombergNEF.
“Batteries are very good,” Fatih Birol, the executive director of the International Energy Agency, said in an interview. “So, are you ready for the big time, and should be included in a post-virus-economic-stimulus plans, he said.
One of the reasons for the decline of the facilities of the battery depends on the way the energy markets are put in place, according to Marco van Daele, co-chief executive officer and chief investment officer of Susi Partners AG, a clean energy and infrastructure fund manager. The novelty, or the storage technology, and the lack of long-term revenue stream, which has put investors off.
An obstacle for a much larger investment in the space, the absence of a contract and visible income,” he said. As well as the cost of construction of the batteries go down, the remuneration of this capacity needs to become more visible to attract large-scale investment is necessary.”
For decades, the power of markets have been designed around the demand and ensure that there is a sufficient supply to meet the peak consumption. Slowly, the focus is changing from how to control an oversupply, when the sun is shining or the wind. And with renewables having priority of the power in the network, they have the most influence on the way the system is managed.
Learn more about the renewable energy sources have an impact on the grid in the united Kingdom
The slide in demand caused by the virus lock was like pressing a fast-forward button, in the power of markets where you have large quantities or for a generation, but not the investment in flexibility,” said Peter Osbaldstone, a director of research on the European power and renewable energy sources to Wood Mackenzie Group, Ltd.
For its part, the EU has proposed a € 750 billion ($824 billion) stimulus plan to accelerate the transition to a means of transport, the increase of energy savings and stimulate the production of renewable energy.
Read more about the Green Deal here
The European Farm Alliance wants to take the opportunity to accelerate projects that have the potential to create 1 million jobs in the sector that could be worth up to € 210 billion over the next 2-1/2 years, according to the European Commission Vice-President Maros Sefcovic.
European carbon emissions are on track for a reduction of 17% this year, due to a greater proportion, or renewable energy, is used to meet the demand. A combination of solar and wind energy could make the largest share of power capacity in Europe, the major markets as early as 2023, according to Wood Mackenzie.
For the farm owner, the fluctuations in the prices when renewables hit the grid, could be a major opportunity. The Batteries can “charge” when solar and wind energy is abundant, and the market rates are low, and then sell the electricity on the grid when prices are high. With enough capacity on the system, and the purchase and sale of farm operators could ultimately contribute to mitigating price fluctuations.
In The U. K, Ireland, Italy, France and Germany have a strong growth potential in the short term, according to Marek Kubik, market director of the U. k. and Ireland were, with the Fluence of the Energy, LLC.
Factors, such as retirement, the thermal production, the rapid growth of variable renewable energy generation, and a movement to electrify sectors, such as transport and heat, all point to a need for flexibility which can be easily supplied by the battery energy storage, ” he said.
(Adds analysis, Woodmac, in the 11th paragraph)
bloomberg.com“data-reactid=”46″>For more articles like this, please visit us at bloomberg.com
Subscribe now to stay ahead with the most trusted news source.” data-reactid=”47″>Subscribe now to stay ahead with the most trusted source of news.
©2020 By The International Monetary Fund, L. P.