Association of European Automotive and Industrial Battery Manufacturers

(BRUSSELS, 30 November 2016) Eurobat, the Association of European Automotive and Industrial Battery Manufacturers, welcomes the attention dedicated to the topic of energy storage through batteries in the Winter Package published today by the European Commission, but at the same time highlights that more should be done to decarbonize the energy sector and take full advantage of the benefits offered by energy storage. In particular, the package is lacking ambition when it comes to renewables: the 27% renewables target to 2030 and the removal of priority of dispatch are worrying signals for the decarbonisation of the energy sector and the achievement of targets included in the Paris Agreement.

EUROBAT published this year a paper on the opportunities offered by energy storage and the legislative barriers preventing Europe to fully embrace the battery energy storage revolution. Batteries can offer grid services and store energy from on-peak renewable energy and discharge it when it is more needed on central, decentral and off-grid situations. We are thus glad to see that the European Commission is recognizing the importance of our technology, finally addressing most of these legislative barriers. 

EUROBAT welcomes the inclusion of the definition of energy storage in the Electricity Directive: this is a long awaited measure to recognize the importance of energy storage. However, it will be important to establish storage as a separate component of the energy system with its own characteristics. We also particularly welcome the proposal to remove discriminative network tariffs against energy storage, first of all double grid fees that unnecessarily disadvantage energy storage systems. It is also important that all market participants shall be financially responsible for imbalances they cause in the system, thus incentivizing the providers of flexibility services such as battery energy storage. Electricity prices actually reflecting actual demand and supply will be important tools to send correct market signals prices for demand-response, smart appliances (including electric vehicles) and storage solutions like batteries and would generally act as a critically important tool for ensuring flexibility.

However, we think that the provision forbidding TSOs and DSOs from owning and operating energy storage systems could limit the market potential and full deployment of batteries. As highlighted in a recent joint position paper, EUROBAT believes that a “build or buy” choice would be preferable, to allow grid operators to procure system flexibility services from storage facilities in the market or fulfil their needs themselves. We anyway welcome the creation of a proper market for storage services, allowing also small players to participate on an equal stand, individually or through aggregation. 

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About EUROBAT:

EUROBAT is the association for the European manufacturers automotive, industrial and energy storage batteries. EUROBAT has 53 members from across the continent comprising more than 90% of the automotive and industrial battery industry in Europe. The members and staff work with all stakeholders, such as battery users, governmental organisations and media, to develop new battery solutions in areas of hybrid and electro-mobility as well as grid flexibility and renewable energy storage.

For more information, please visit www.eurobat.org or contact the office in Brussels.