Energy policy and energy storage Batteries as enabling element · Energy policy and energy storage Batteries as enabling element ... Rational : meet COP21 commitments and pave the

Energy

Energy policy and energy storage Batteries as enabling element

Energy

Dr. Tudor Constantinescu Principal Advisor European Commission – DG Energy

Driving Towards Decarbonisation of Transport: Safety, Performance, Second life and Recycling of Automotive Batteries for e-Vehicles Petten, 22-23 September 2016

Climate and energy: where do we stand?

• Developments since the 2009 Energy and Climate change package

Renewable energy saw rapid cost decreases

Technologies are gradually becoming competitive

But large scale integration is a challenge

Impact of the financial crisis Fall in private investment, tight

financing conditions

Rising demand -> rising prices

By 2030, world economy set to double and energy demand to rise by 1/3

Fukushima

Some countries phase out nuclear power production

Shale gas US oil and gas production

Unconventional gas

Conventional gas Unconventional oil

Conventional oil

Ukraine

COP21 -Paris

Energy

Supported by multiple scenario analyses, to show how to reach the 80 % / 95 % goal while at the same meeting other policy objectives (Competitiveness and Security of Supply)

Containing robust assumptions for all possible scenarios

Looking to the future – Energy Roadmap 2050

•Basis: 20/20/20 objectives of the EU energy policy

•Roadmap 2050: Cutting GHG emissions until 2050 down to 80 – 95 % below the level of 1990

•The Energy Roadmap 2050: the basis for the elaboration of a low carbon 2050 strategy

Energy

Fuel Ranges (primary energy consumption)

0%

25%

50%

75%

RES Gas Nuclear Oil Solid fuels 0%

25%

50%

75%

RES Gas Nuclear Oil Solid fuels

2030 2050

2005

Energy

Major energy challenges in Europe

.Import Dependency .High Energy Prices .Decarbonisation .Technology mix

5

Energy

The Energy Union

The Energy Union aims to address the three objectives of competitiveness, security of supply and sustainability. •through a strong commitment by the EU institutions and the Member States to deepen integration, cooperation and coordination of both the external and internal aspects of energy policy.

The Energy Union should be based on five mutually reinforcing dimensions: 1. Supply security, based on solidarity and trust 2. A competitive and completed internal energy market 3. Moderation of energy demand 4. Decarbonisation of the EU energy mix 5. Research and innovation

Energy

2030 framework for climate and energy policies

legislation review & revision in 2016

Review

Energy Efficiency Directive

Review

Renewable Energy Directive

Review

Energy Performance of Buildings Directives

8

Market Design Initiative

Energy Labelling & Ecodesign Directives

Rational : meet COP21 commitments and pave the way towards 2050

Smart Finance for Smart Buildings and Businesses

EU Strategy for

Heating and Cooling

Energy

A flexible and adaptive energy system

Smart Energy System .Generation

.Demand

.Electricity, gas and heat networks

.Storage

Flexibility

ICT

Adaptability

9

Power generation

Grid

Storage

Demand management

Transport; BEV, etc.

Prosumers

Markets

Fuel switching

Avoid lock-in

Adaptation of the gas grid

Energy

Energy Storage

Storage of Electricity and Heat .Need to cover peak demand and surplus supply in short term .Pumped hydro storage represents currently the main electricity

storage option

• variable renewable power generation challenges the profitability .Batteries - geographically independent, fast to install, scalable and

can provide primary control .Heat storage is also relevant in the shift to a low carbon economy

• heat represents about half of the final energy demand .For any storage technology:

• Important to refine the position of the various market actors

• Markets for the storage and flexibility services needed 10

11

Electricity Market Design Storage related issues identified

Our analysis and input from various stakeholders indicates several issues

related to efficient use of energy storage in the electricity system. For

example:

» Ownership

» Access to grid

» Grid fees and levies

» Lack of markets for the services provided to the grid

» Lack of EU level framework

» Interlinks to other energy networks and sectors

Energy

12

The European Commission’s Energy Union strategy dedicates one of its five dimensions to R&I and competitiveness. The new Integrated Strategic Energy Technology (SET) Plan will play a central role, designed to accelerate the energy system transformation, as explained in a communication adopted in September 2015. It will in particular: - Identify 10 key actions for research and innovation, based on an assessment of the energy system needs and on their importance for the energy system transformation and the potential to create growth and jobs in the EU; - Address these actions throughout the whole innovation chain, from basic research to market uptake, both in terms of financing as well as in terms of regulatory framework; - Adapt the structures set up under the SET-Plan to ensure a more effective interaction with Member States and stakeholders; - Proposes to measure progress as part of the annual reporting of the State of the Energy Union via overall Key Performance Indicators (KPI’s).

Integrated Strategic Energy Technology Plan

E-mobility need batteries with longer range, lower weight and lower cost

E-mobility must be integrated component of the energy system.

• A European R&I strategy for batteries must consider for both stationary and EV applications

SET‐Plan ACTION n°7 – Become competitive in the global battery sector

Declaration of Intent, July 2016: "Become competitive in the global battery sector to drive e‐mobility forward"

Batteries as a driver for growth Synergies in energy & transport

Cost development of batteries

Source: Nature Climate Change 5, 329–332 (2015)

Source: U.S Department of Energy, Grid Energy Storage (2013)

Storage - Technologies and applications

Large scale storage based on Li-Ion

High growth rates for stationary storage

Whole innovation chain – basic research- materials technology - manufacturing processes

Batteries in a systems approach

Battery management system

Power electronics

Systems for safety

Elements for batteries R&I strategy

Energy

Horizon 2020 project - ELSA

• Energy Local Storage Advanced system (ELSA)

• Combine second life electrical vehicles Li-Ion batteries with thermal storage and DR to support a wide range of end users application requirements (36m, Budget 13.1 M€, EU grant: 9.8 M€)

• Expected impact:

Optimized design of Hybrid Storage Systems

Proposal for the mass-market industrialization

Flexible and Adaptable ICT-based Energy Management System

Identification and adaptation of safety and regulatory issues

Evolution of the standards for EMS

Social acceptance for electrochemical storage

Storage-as-a-service model

Energy

Thank You for Your Attention!

[email protected]

http://ec.europa.eu/energy

Energy