The EU aims to be climate-neutral by 2050 – an economy with net-zero greenhouse gas emissions. This objective is at the heart of the European Green Deal and in line with the EU’s commitment to global climate action under the Paris Agreement. Energy storage systems (ESS) and battery energy storage systems (BESS) are key to the energy transition. Inspiration for this transition to ESS solutions comes currently from outside the EU.
Efforts to build the applications and infrastructure to generate energy from renewables are complemented by the work being done to connect these technologies to the grid and guarantee a smooth energy supply 24/7. With the volatile energy supply from renewables such as wind, solar, and hydropower, ESS can help stabilize the grid by smoothing out energy supply and demand fluctuations. This will reduce the need for costly grid upgrades and improve overall grid efficiency.
To support the energy transition, modern energy storage solutions for PV plants enable the integration of renewable energy sources that are intermittent in nature. By storing excess energy generated during daylight, it can be used later when there is low production. In the event of outages or periods of high demand, ESS products can deliver solid backup power and support the balance of the electricity grid.
Price for energy storage is on a downward trend
With OpEx- and CapEx-optimized products, ESS technology helps to reduce energy costs by reducing peak demand charges and providing energy during times of high energy prices. ESS also offers environmental benefits: Energy storage can help reduce greenhouse gas emissions by enabling greater use of renewable energy sources and reducing the need for fossil fuel-fired power plants.
With more than 10 years of experience in BESS and 7 GWh shipped just in 2022, Sungrow is a forerunner in the utility-scale energy storage market.
As of right now, the price of polysilicon ─ a key raw material used in the production of solar cells ─ is on a downward trend and the decreasing cost of solar-generated energy storage will make the investment very attractive in the near future. For example, for a project of 50 MW / 100MWh using the PowerTitan liquid-cooled ESS by Sungrow, the total system cost (LCOS) can be reduced by about 20% percent.
ESS forerunners outside EU will inspire EU investors
In Israel, Sungrow has already installed multiple PowerTitans on an 88 MWh BESS plant. The utility-scale energy storage system will improve the efficiency of the gas turbine plant and reduce the runtime of the turbines, allowing generators to be turned down quickly and improving the speed and flexibility of their response. The plant produces 10% of the Israeli energy demand. Liquid cooling enables cells to have a more uniform temperature throughout the system while using less input energy, eliminating overheating, maintaining safety, minimizing degradation, and enabling higher performance.
Another recently signed ESS contract in Israel is covering an additional pipeline of several hundred MWh for Doral Energy. “Sungrow is one of Israel’s key energy storage solution suppliers, contributing to local net-zero carbon ambition,” said Tzvi Ben David, General Manager of Sungrow Israel.
European lighthouse projects for Sweden and Germany
According to the BloombergNEF Energy Storage Market Outlook published in 2022, larger and longer-duration projects highlight the scale-up of energy storage use cases in EMEA.
Sungrow recently announced its cooperation for UK’s longest-duration BESS project. The biggest (to date) UK solar-plus-storage plant was completed in 2020 using Sungrow ESS’ in Wiltshire and is already generating and storing 100 MW/100 MWh for the local grid.
Another new large-scale storage project with 20 MW/20 MWh is now being built with the Scandinavian Capacity Reserve (SCR). It is located in Landskrona, southern Sweden, and will provide ancillary services to help balance the grid for Landskrona Energi AB.
Germany is also now entering the green storage market, with the first Sungrow DC-coupled solar plus (large-scale) storage project using Sungrow’s liquid-cooled solution. The project, with a capacity of 3.125 MW/5.5 MWh, was agreed upon in March 2023.
Transformation of the European energy system is required
Historically, the EU’s energy demand has been growing but at a slower rate than in the past due to various factors, such as energy efficiency improvements, changes in industrial structure, and policies promoting renewable energy sources. The EU has set ambitious goals to reduce its greenhouse gas emissions, which will require a significant transformation of its energy system. According to the European Commission’s Energy Outlook 2050, the energy demand in the EU is projected to continue to decline gradually over the coming decades.
The Commission has also established a goal to reduce greenhouse gas emissions by at least 55% by 2030 compared to 1990 levels. To achieve this goal, the EU will need to accelerate the transition to a decarbonized energy system. This transition will involve a shift away from fossil fuels toward renewable energy sources, such as wind, solar, and hydropower, as well as improvements in energy efficiency and the adoption of new technologies.
Any effort to use renewable energy, leading to the abandonment of nuclear power and fossil fuels, will create a future for this planet and its inhabitants, animals, and plants ─ so efforts to protect the earth’s limited resources are urgently needed. Sungrow offers a range of leading technologies for this purpose and is working toward the goal of carbon dioxide-free production by 2028. Sungrow’s corporate social responsibility is underscored by its membership in the RE100 and EP100 initiatives (see the latest sustainability report 2021).
Being a strong supporter and an active doer in responding to global climate change, Sungrow has always adhered to the mission of “Clean power for all” and will continue to advance the deep integration of business and sustainability. By strengthening the development and utilization of renewable energy and improving energy efficiency, companies from all sectors vigorously contribute to global pollution reduction and carbon reduction.
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