ITM Power (AIM: ITM), the energy storage and clean fuel company, is pleased to announce the imminent publication of a major new report “Commercialisation of Energy Storage in Europe”, funded by the FCHJU and compiled by a coalition of 32 organisations including Shell, Siemens, Alsthom, Vattenfall and Eurogas.
The Fuel Cells and Hydrogen Joint Undertaking (FCH JU) is a unique public private partnership supporting research, technological development and demonstration activities in fuel cell and hydrogen energy technologies in Europe. Its aim is to accelerate the market introduction of these technologies, realising their potential as an instrument in achieving a carbon-lean energy system. For the period 2014-2020 the FCHJU will be investing 665m euro. In addition in the same period, the CEF (Connecting Europe Facility) will be investing 11,930m euro and 5,850m euro respectively in transport and energy infrastructure.
The preliminary findings of the report identify the European energy storage potential for electrolysis as several hundred GW with up to 170GW in Germany alone, if 2050 decarbonisation targets are to be met. It states the use of electrolytic hydrogen in the gas grid, mobility or industry can productively utilize nearly all excess renewable energy, unlike power-to-power storage (such as batteries) whose utilisation becomes compromised as the renewables penetration increases. It will recommend that policymakers address the low degree of regulatory acknowledgement of storage as a specific component of the electric power value
chain and exempt electrolysers from final consumption fees.
Other key findings of the report include:
- There will be economic potential for very large amounts of storage for the integration of intermittent renewables.
- Storage can create value in the short run, but reviewing regulation is key to unlocking this opportunity.
- Storage demand will depend on country-specific characteristics, in particular the level of interconnectivity, and island countries like the UK will require the most storage.
- Conversion of electricity to heat and heat storage is a proven and relatively low cost option for providing flexibility to the power system, but its potential is limited by the share of electricity demand used for heating and its seasonal variation.
- Conversion of electricity to hydrogen and its use in the gas grid (power-to-gas), hydrogen mobility or industry can productively utilize nearly all excess renewable energy.
