The EU has committed itself under the European Green Deal to decarbonizing the European economy and becoming carbon neutral by 2050. To this end, an accelerated transition from fossil fuels as a primary energy source to renewable energy will be required. The integration of intermittent and variable renewable energy sources (e.g., wind and solar) into the power system requires greater flexibility in supply and demand in order to stabilize the power grid, prevent extreme price fluctuations and maintain security of supply and electricity price affordability. Short-term energy storage and multi-month seasonal storage is one of the ways to achieve the goal of such greater flexibility.
Energy storage can play a key role in narrowing the gap between the extreme values of energy prices and balancing the high and low levels of demand and supply. Thus, a wide range of storage technologies needs to be implemented having all features, in terms of power, capacity and response time, to contribute to grid stability, voltage regulation, operating reserve, dispatch and re-dispatch, etc.
This article seeks to briefly review some key issues related to the regulatory framework and policies for energy storage, storage mechanisms and available financing.