PR4 Business models for flexible production and storage

Authors:  B. Normark (KIC IE); A. Shivakumar (KTH); P. Deane (UCL); A. Faure (Ifri); J. Gottschling (University of Stuttgart); R. Pattupara, K. Ramachandran (PSI); D. Jakšić, K. Stupin, R. Van Hemert (EIHP); C. Taliotis (KTH)

Language: English Year: June 2016
Countries: European Union Weblink
Topics: Economy, Forecasts, Markets, Network, Electricity Storage Type: Policy Report
Energies: Electricity, Renewables

Summary: Current trends and policies are progressing in the direction of an increased share of electricity from renewable sources in the EU electricity system, in particular from intermittent sources such as wind and photovoltaics. Furthermore, the share of electricity in total energy consumption is likely to increase in the coming years. Finally, there is increasing use of electric appliances in households at varying use through the day. All together this results in potentially large and sometimes fast variation of both electricity production and consumption – as well as the need to match these – calling for temporary production or storage of electricity or conversion of electricity into other forms in a range of scales for both power and time.

The following research questions are the focus for this study:

  • What lessons can be learnt from how flexible production and storage were applied in the past, also in terms of business models and legislation?
  • How have business models and legislation in terms of flexible production and storage evolved to the present day in light of the increase in use of intermittent sources?
  • What are the reasons for success or failure of flexible production and storage, particularly with regard to business models and legislation?
  • What has the role of storage been in the energy system and how is it expected to change into the future, particularly in terms of the amount of energy, power needed and time scales?

In the light of past and current experiences, the study reviews the need for temporary production and storage (amount of energy, power needed, time scales) in the future, at a time horizon out to 2030 and 2050. This aspect of the report bases its analysis on modelling exercises, and considers the potential solutions to deploying temporary production and storage. Business models and potential evolutions of the legislative framework associated with the different solutions are also proposed.

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PR4_Business_Models

 

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