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Energy storage
European Union Electricity Market Glossary

 

 

 

The so-called 'Winter Energy Package' defines an 'energy storage' in the electricity system as 'deferring an amount of the electricity that was generated to the moment of use, either as final energy or converted into another energy carrier' (Article 2(47) of the Proposal for a Directive of the European Parliament and of the Council on the internal market for electricity (recast) on common rules for the internal market in electricity (recast), 30.11.2016, COM(2016) 864 final 2016/0380 (COD)).

 

 

Article 36 
of the Proposal for a Directive of the European Parliament and of the Council on the internal market for electricity (recast) on common rules for the internal market in electricity (recast), 30.11.2016, COM(2016) 864 final 2016/0380 (COD)

 

Ownership of storage facilities


1. Distribution system operators shall not be allowed to own, develop, manage or operate energy storage facilities.


2. By way of derogation from paragraph 1, Member States may allow distribution system operators to own, develop, manage or operate storage facilities only if the following conditions are fulfilled:


(a) other parties, following an open and transparent tendering procedure, have not expressed their interest to own, develop, manage or operate storage facilities;

 

(b)  such facilities are necessary for the distribution system operators to fulfil their obligations under this Directive for the efficient, reliable and secure operation of the distribution system; and


(c)  the regulatory authority has assessed the necessity of such derogation taking into account the conditions under points (a) and (b) and has granted its approval.


3. Articles 35 and 56 shall apply to distribution system operators engaged in ownership, development, operation or management of energy storage facilities.


4. Regulatory authorities shall perform at regular intervals or at least every five years a public consultation in order to re-assess the potential interest of market parties to invest, develop, operate or manage energy storage facilities. In case the public consultation indicates that third parties are able to own, develop, operate or manage such facilities, Member States shall ensure that distribution system operators' activities in this regard are phased-out.


Report of the European Parliament’s Committee on Industry, Research and Energy (ITRE) of 27 February 2018 on the proposal for a directive of the European Parliament and of the Council on common rules for the internal market in electricity (recast) (COM(2016)0864 – C8-0495/2016 – 2016/0380(COD)) proposed the following modification to the definition of energy storage in the electricity system:


‘deferring the use of electricity to a later moment than when it was generated or the conversion of electrical energy into a form of energy which can be stored, the storing of that energy, and the subsequent reconversion of that energy back into electrical energy or another energy carrier.‘

The noteworthy amendment has been also introduced by the aforementioned ITRE Report of 27 February 2018 to Article 3(2) of the said directive.

 

The European Commission proposed Article 3(2) of the directive with the following wording:

 

‘Members States shall ensure that no undue barriers exist for market entry and market exit of electricity generation and electricity supply undertakings’

 

while the ITRE added to this energy storage:

 

‘Members States shall ensure that no undue barriers exist for market entry and market exit of electricity generation, energy storage, demand-response and electricity supply undertakings’.

 

Moreover, ITRE added important requirements (Article 15(2) that the EU Member States must ensure that active customers owning a storage facility:

(a) have the right to a grid connection within a reasonable time following the request;
(b) are not subject to additional taxes, surcharges, and fees for the electricity stored in the storage facility;
(c) are distinguished from generators and not subject to related licensing requirements and fees;
(d) are allowed to provide several services simultaneously, if technically feasible.  

 

The policies and measures to ensure the non-discriminatory participation of energy storage, including via aggregation, should be described in the national climate and energy plans, the EU Member States are required to prepare under Article 3 of the Regulation of the European Parliament and of the Council on the Governance of the Energy Union.

 

 

 

 

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    Documentation    

 

 




 

Report on the proposal for a directive of the European Parliament and of the Council on common rules for the internal market in electricity (recast) (COM(2016)0864 – C8-0495/2016 – 2016/0380(COD)), European Parliament, 27 February 2018, Committee on Industry, Research and Energy 

 

Proposal for a Directive of the European Parliament and of the Council on the internal market for electricity (recast) on common rules for the internal market in electricity (recast), 30.11.2016, COM(2016) 864 final 2016/0380 (COD), Article 2(48), Article 36

 

Energy Storage: Which Market Designs and Regulatory Incentives Are Needed? Study for the ITRE Committee, 2015

 

Energy Storage and Storage Services ENTSO-E Position, October 2016

 

 

 

 

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Last Updated on Monday, 21 January 2019 13:10
 

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