How grid operators and renewable energy producers can use batteries to develop a flexible energy system – pv magazine USA

July 8, 2024 Viggo Aavang and Thomas Dalgas Fechtenburg

From ESS news

The rapid growth of renewable energy sources such as solar and wind creates opportunities and challenges. While these sources dramatically reduce carbon emissions, they also introduce variability and intermittency into the energy grid. We must address this imbalance and ensure the stability and reliability of our energy systems.

However, it is crucial that the imbalance that renewable energy creates is not seen as an individual challenge, but as a collective responsibility that requires the cooperation of grid operators and renewable energy producers. In the face of these unprecedented challenges, the need for flexible assets such as batteries becomes more pronounced.

For now and for the foreseeable future, batteries offer a key way to manage fluctuations in renewable energy production. Whether providing short-term frequency regulation or storing excess energy for later use, batteries can play a key role in balancing supply and demand on the grid.

As electricity prices and ancillary services change, so does the value of batteries. In our opinion, we’ve only seen the tip of the iceberg when it comes to hourly price fluctuations. As the cost of batteries gradually declines and generates many benefits, such as behind-the-meter in hybrid power plants, this is something renewable energy producers should consider.

From a grid operator perspective, we need to prepare for the expected increase in imbalances resulting from forecast errors. This also applies to the sale of renewable energy on the day-ahead and intraday electricity markets. We expect that the need for energy balancing will increase in proportion to the renewable energy capacity connected to the grid. Therefore, everyone must provide as much flexibility as possible to ensure cost-effective balancing of a fully renewable energy system. This is particularly true in Denmark, as the main flexibility providers are slowly being phased out, namely central and decentralized thermal power plants and CHP plants.

Hence, new technologies and renewable energy companies will be crucial to maintaining system stability. Cooperation in the balancing market is essential to ensure a smooth transition towards a renewable energy future.

If we, as renewable energy producers, start producing large amounts of renewable energy, we need to take responsibility for how that affects the grid. That means planning projects that align with the goals of the grid operators.

As we look to the future of the energy system, a shared goal should be to design markets that provide economic incentives to support system balancing. Regardless of what each market finds, greater flexibility and shared responsibility seem to be key elements. Producers and operators will need to work together to achieve market dynamics that make the system work for all participants.

For example, Better Energy is implementing its first battery project in one of its Danish solar parks, where a 10 MW lithium-ion system will be installed by the end of 2024. This gives us the opportunity to develop strategies based on the need for flexibility of the Energinet system and an energy system based primarily on renewable energy sources.

Technology aside, we cannot successfully transition to renewable energy without a strong understanding and cooperation with grid operators. Our organizations have previously worked together to certify solar parks to provide frequency services. This is an example of the cooperation and understanding needed between renewable energy producers and grid operators to achieve a stable and reliable power grid.

As the country with the most intermittent renewable energy production relative to electricity consumption in the world, Denmark and Energinet want to punch above their weight and show that it is possible to sustain a fully renewable system in a cost-effective way. We strive to support innovation and new solutions and have a history of strong cooperation with market players.

From a Better Energy perspective, Denmark is fortunate to have such progressive grid operators who are committed to moving away from fossil fuels and building an energy system that will sustain us for many years to come. We hope that this approach will serve as an example for neighbouring countries that are undergoing an energy transition.

About the Authors:

Viggo Aavang is Senior Vice President of Energy Markets at Better Energy, a renewable energy company that develops, builds and operates renewable energy parks in Northern Europe. He has over 20 years of experience in European energy markets and is committed to building a flexible energy system based on renewable energy sources.

Thomas Dalgas Fechtenburg is a Senior Manager of Ancillary Services at Energinet, the Danish transmission network operator. He has over eight years of experience at Energinet and is deeply involved in developing solutions that will enable Denmark to sustainably renewable the future.