International experience

International experience15.09.2023

Energy storage systems: application, support, and challenges.EU experience: government and ifis support

As countries worldwide strive to achieve their clean energy targets and accommodate the growing presence of intermittent renewable power generation, energy storage systems are emerging as vital components in the development of modernised energy markets. These systems play a crucial role in smoothing out the process of renewable energy generation, balancing supply, and demand, as well as providing essential ancillary services like frequency and voltage control for grid reliability and stability. Despite the rapid growth of battery storage projects, driven by technological advancements and cost reductions, these projects have predominantly been implemented in developed countries. https://www.trinityllp.com/wp-content/uploads/2023/06/Trinity-Topics-Financing-Battery-Storage-in-Emerging-Markets.pdf

According to BloombergNEF, in 2022, the energy storage market achieved a remarkable milestone, with the addition of 16 GW/35 GWh of capacity, reflecting a substantial 68% increase compared to the previous year. Notably, numerous markets made significant strides by setting ambitious energy storage targets surpassing 130 GW to be achieved by 2030. https://about.bnef.com/blog/1h-2023-energy-storage-market-outlook/

 As reported by the European Association of Energy Storage (EASE), Europe will require a cumulative energy storage capacity of 187 GW by 2030 and 600 GW by 2050 to fulfil its renewable energy objectives. Nevertheless, despite the strict goals for reducing carbon emissions throughout the continent, the majority of countries have not yet developed a national strategy or set targets for the deployment of energy storage. However, there are some promising developments.

 https://www.woodmac.com/news/opinion/europes-grid-scale-energy-storage-capacity-will-expand-20-fold-by-2031/

The European Union (EU) is already actively supporting the development of energy storage capacities through various initiatives.

Hungary

For example, The European Commission has given its approval to Hungary's 1.1 billion Euro scheme to support large-scale energy storage projects, aimed at facilitating the country's transition to a net-zero energy system. The scheme aims to reduce Hungary's dependence on fossil fuels and accelerate the integration of renewables into its electricity system. The funding will be available to energy sector companies within Hungary and can also be used for projects outside the country as long as they can provide power through cross-border transmission. (https://www.energy-storage.news/eu-approves-e1-1-billion-state-aid-for-energy-storage-in-hungary/)

 Italy and Spain

Italy and Spain have also set ambitious targets to achieve 3 GW and 2.5 GW accordingly by 2030. For these aims, the Spanish government has introduced a funding scheme for hybrid energy storage projects that generate renewable electricity. Under this scheme, five storage projects with a combined installed capacity of at least 600 MW will receive financial support, specifically for the integration of storage technologies. https://www.pv-magazine.com/2022/12/01/spain-provides-financial-support-for-600-mw-of-utility-scale-storage/. Italy is set to implement supportive measures with a dedicated funding of 450 million Euros. This funding aims to facilitate investments in the integrated production of renewable hydrogen and renewable electricity, including the development of storage capacities. The focus will be on brownfield industrial areas, fostering the smooth transition towards a net-zero economy. https://safety4sea.com/eu-grants-italy-e450-million-for-renewable-hydrogen-production/

 Greek

The Greek government has impressive plans too, offering financial assistance for the development of 900 MW of energy storage capacity through a tender. This initiative aligns with Greece's aim of deploying a total of 3 GW of energy storage by 2030, in order to reach its 70% renewable energy target. The process for procuring standalone energy storage is expected to begin this year.

https://www.energy-storage.news/gigawatts-of-energy-storage-projects-approved-in-greece-ahead-of-auction/

 Bulgaria

Promising movements are expected in Bulgaria, which rapidly gained a unique all-around interest for projects in the Renewable Energy Sector across the Balkans region. The local Ministry of Energy together with the European Bank for Reconstruction and Development (EBRD) have entered into two agreements in order to advance country’s renewable energy development. They will be aimed at stimulation the expansion of PV capacities and deploying energy storage infrastructure under the Renewable Energy Sources Storage (RESTORE) program. https://www.energy-storage.news/bulgaria-european-bank-for-reconstruction-and-development-sign-renewables-and-energy-storage-agreements/

Croatia

The Government of Croatia in its turn has allocated subsidies totalling EUR 60 million to encourage businesses in installing renewable power plants and batteries. This move also follows a growing trend in European countries to provide subsidies for energy storage facilities associated with new production capacities. Hence, companies, representing processing industry and heating sector are eligible to apply for subsidies to construct PV plants, biomass- and biogas-fired power plants, as well as energy storage systems. However, there is a condition that the batteries are integrated within one of the specified power plant types and located on the premises. The battery capacity must not exceed 25% of peak daily energy production. https://balkangreenenergynews.com/croatia-earmarks-subsidies-for-firms-for-batteries-to-store-green-energy/

Estonia

In the meantime, Estonia provides grants for energy storage pilots, including 8MWh ESS. Its Environmental Investment Centre has awarded 5.2 million Euro to support 10 energy storage projects. These projects will involve both heat storage and electricity storage systems. With a goal to generate 100% of electricity from renewable sources by 2030, Estonia recognizes the importance of energy storage in balancing its renewable energy system. The funded projects will serve as pilot examples, showcasing the applications of energy storage to other interested parties. ttps://www.energy-storage.news/estonia-provides-grants-for-energy-storage-pilots-including-eesti-energias-8mwh-bess/

    The United Kingdom

The UK government has allocated £30 million funding to support innovative projects focused on capturing and storing renewable energy for future utilization. The funding aims to assist pioneering businesses in testing and preparing their technologies for the energy market, thereby stimulating private investment and generating employment opportunities nationwide.

https://www.gov.uk/government/news/30-million-government-boost-to-capture-and-store-more-renewable-energy

 ENERGY RESILIENCE IN KAZAKHSTAN : ADDRESSING NEEDS THROUGH MODERN STORAGE SOLUTIONS

 As for the Central Asian countries, especially, Kazakhstan, the extremely cold winters of 2022 demonstrated the need for structural reforms throughout the region. The reasons behind the last year’s energy crisis included worn-out energy infrastructure, lack of investments in new facilities and modernisation of old ones, insufficient reserve capacity, as well as the absence of government support in both RES and ESS projects realisation.

At the same time, the development of new facilities, especially wind and solar, do require addressing the issue of their unstable generation and upgrading the grid. In addition to implementing such flexible power sources, the deployment of energy storage systems and the introduction of Smart Grid technology are vital. https://www.pwc.com/kz/en/assets/energy-report/energy-report-rus-final.pdf This is ESS namely, that will have a crucial role in supporting Kazakhstan to meet its peak energy demands and driving country’s transition towards clean energy.

Kazakhstan Electricity Grid Operating Company (KEGOC) has already announced a pilot project for the commissioning of electricity storage systems starting from 2024. Currently, efforts are underway to determine the estimated project cost and prepare the terms of reference. The proposed pilot project is located at the 220 kV Zhanakorgan substation in the Kyzylorda region and aims to have a capacity of 5 MW / 20 MWh.

KEGOC expects this project to provide valuable insights into the operational characteristics of implementing Energy Storage Systems (ESS) in Kazakhstan's frigid climate. The grid operator also aims to identify the essential functionalities of these systems and establish technical standards for ESS and their seamless integration into the country's power grid.https://lsm.kz/v-kazahstane-budut-po-novomu-reshat-problemy-elektroenergii

However, according to Unicase Law Firm analytics, there are also significant regulatory barriers that need to be addressed in Kazakhstan. Outdated state policies, maladaptive plans and roadmaps, legislative gaps, and the absence of economic incentives such as subsidies and funding are among the challenges that need to be overcome first. https://unicaselaw.com/blog/energy-storage-systems-in-kazakhstan-time-for-regulatory-changes

 ESS INSIGHTS: AIMS, APPLICATIONS, AND ESSENTIAL METRICS

 Energy storage systems have various applications in different fields. They can be used for peak shaving, load shifting, production peak shifting, and providing system services. ESS also play a crucial role in frequency voltage and grid regulation, particularly for primary regulation due to their fast response. They can be used in combination with PV, wind, hydro, gas, or as standalone systems. Additionally, ESS can facilitate the black start of thermal stations and support trading activities, allowing energy to be bought and sold based on market demand.

By implementing energy storage systems in countries with consistent emergency shutdowns, the reliability, resilience, and flexibility of the energy infrastructure can be significantly improved. This, in turn, helps mitigate the adverse effects of shutdowns, ensures continuity of critical services, and enhances the overall energy security of the country.

 EXAMPLES OF ESS PROJECTS OF VARIOUS SCENARIOS REALISED ON HUAWEI EQUIPMENT

 1.     Sweden: frequency regulation

 In certain regions, like Scandinavia, the demand for grid maintenance services, particularly grid frequency and voltage regulation, has given rise to a flourishing market. Among the diverse array of solutions available, energy storage systems have emerged as an optimal choice for fulfilling these crucial roles. Their inherent flexibility and scalability allow for seamless system expansion, enabling them to efficiently regulate the frequency of the electric network. 

The real example of ESS work in such mode is illustrated below.

 2.     CHINA - EV charging station - Peak shaving to avoid grid capacity modernization https://drive.google.com/drive/folders/1CF-tjmDb9kSvGQeO6ButY4SMnx4lMcx8

 With the rise in power consumption due to electric vehicle charging stations expansion, existing facilities require substantial power supply upgrades. However, installing an Energy Storage System can avoid costly retrofits by efficiently providing electricity to cover peak loads. ESS in Peak shaving mode ensures a smooth operation, effectively managing real load peaks and reducing strain on the power supply system.

 3.     8MWh ESS Program of Jiangsu Centuray Factory, China – battery backup avoid production interruption, save electricity cost $0.45 M/year

 In the commercial sector or manufacturing, network downtime leads to costs. Solar Power Plants (SPPs) require an electric network to function and in case of electricity shutdown stop working without it. To prevent production interruptions, Energy Storage Systems can be installed for backup power. During a network outage, the ESS becomes the primary electricity source, ensuring continuous operation for the SPP.

 4.     Bui Hydro-Solar PV Hybrid (HSH) system, Ghana

 Thanks to Huawei solution that delivers easy maintenance, secure and safe performance and uses high-density lithium batteries, Ghana is on track to achieve its goal of universal access to electricity by 2025. The country is developing a hybrid project, combining hydro and solar capacities with battery storage units to provide a stable supply of power to the grid day and night.

 To help provide a continuous supply of electricity from the hydro dam, even when water levels are low in the dry season, the BPA added the solar element to the existing hydropower plant, harnessing the country's abundant solar resources to generate clean power for Ghana's national grid.

 The combination of hydro and solar power, alongside Battery Energy Storage System is what enables the plant to provide a stable supply of power to the grid day and night. This is important for the energy security of Ghana.

https://www.pv-magazine.com/press-releases/west-africas-first-hybrid-power-plant-demonstrates-successful-mix-of-solar-and-hydropower/

 5.     The largest energy storage system in Southeast Asia, Singapore

 Another landmark project, realised on Huawei equipment, was officially launched in Singapore this February, enabling the largest ESS in Southeast Asia. Commissioned in six months, the facility is the fastest in the world of its size to be deployed. The implemented solution maintains optimal temperatures for stable power output, and offers four-layer safety protection, ensuring the project's stability and safety. The project will enhance the power grid stability and resilience, contributing to Singapore's goal of a net-zero future. https://www.linkedin.com/posts/huawei-digitalpower_energystorage-ess-netzero-activity-7027177552062386176-QVIs?utm_source=share&utm_medium=member_desktop

 6.     Huawei is set to energize the world’s largest ESS project – the Red Sea project, 1300 MWh, Saudi Arabia

 Huawei was also chosen to provide its flagship FusionSolar Smart PV + Storage solution that includes the 1300 MWh energy storage system for the world’s largest autonomous facility (microgrid) based on Energy Storage Systems (ESS). ESS serves here as a backbone and establishes the network for the solar power station, while also fulfilling the role of storing excess electricity generated by the solar power station during the day to cover loads in the evening and at night.

 This project, situated in Saudi Arabia, will definitely become another remarkable endeavour, aimed at achieving complete reliance on sustainable sources, making Battery Energy Storage Systems (BESS) a crucial component.

https://feico.co.th/huawei-to-power-the-worlds-largest-energy-storage-project/

 POWERING ESS DEVELOPMENT: HUAWEI AND PHOTOMATE'S IMPACT AND VISION

 As renewable energy and electric vehicles demand continue to grow globally, conventional power grids face challenges transitioning from centralised to distributed generation. Huawei is committed to ensure grid stability, intelligent collaboration and scheduling essential technologies. Through innovation, Huawei enables industries to lower energy consumption, transforms their energy mix, and makes clean and affordable energy accessible worldwide.

 Being a leading provider of digital power solutions, Huawei produces smart PV & storage equipment applicable for three application scenarios – utility-scale, commercial & industrial, and residential.

 With more than 10 years of R&D experience in energy storage systems that integrates digital, power electronics, and energy storage technologies, Huawei Smart String ESS overcomes the limitations of lithium batteries and adopts pack-level optimization, rack-level optimisation, distributed cooling, and all-modular design, enabling the batteries' full charging and discharging potential and providing optimal LCOS for PV plants. The system ensures complete safety through a robust four-layer protection system, encompassing cell-level short circuit detection, pack-level safety shutdown, rack-level overcurrent protection and fault isolation, and system-level intelligent fire suppression. https://energydigital.com/renewable-energy/huawei-launches-solar-pv-and-energy-storage-solutions

 All the mentioned solutions are already available for the Central Asian market via Photomate, official VAP and CSP partner for Huawei Digital Power products distribution. While there are currently no ongoing projects in Central Asia, the company has gained extensive experience in implementing utility-scale Energy Storage Systems (ESS).

The goal of the company is to supply smart and reliable solar equipment with maximum technical support for our customers in the regions of the company's presence.

Over the past 7 years, Photomate, together with partners, has taken part in the implementation of projects with a total capacity of more than 11 500 MW. Huawei's solutions made it possible to implement projects of various scenarios and capacities: from residential installations (2 kW) to utility-scale SPPs (340 MW).

Photomate was involved in procurement and delivery of BESS for Short Johansfors project in Sweden mentioned above. Huawei was responsible for negotiation with the customer and commissioning of the system. The work was finished in January 2023. After commissioning was performed, energy capacity test followed for the EN 62933. Since February 1st BESS has been sold to a new owner, who is now interested in signing new projects with both companies.

Photomate is currently expanding its’ portfolio with the upcoming ESS projects in Estonia, Poland and Czech Republic, that will be put into the operation until the end of 2023.

 Photomate in numbers

Active in 23 countries

5800+ MW sold in 2022

430205 kWh sold in battery capacity

165 trainings in 2022

 Together with Huawei, Photomate is committed to introduce reliable and uninterrupted access to clean energy sources for all Central Asian countries, extremely requiring new generating capacities not only to reach their green energy transition targets, but also gain energy independence and grid stability.

 Get in touch with us to get all your questions answered and learn more about the available equipment:

   The article was prepare by Photomate Kazakhstan team


 

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