Very positive support at European level for storage and the need to remove regulatory barriers and inequalities to enable the market to grow. The ITRE report makes particular mention of the need to avoid doubling up on fees for charging and discharging of storage assets, which is a timely prompt for OFGEM on its recent consultation.
It will be fascinating to see the precise text of the New Energy Market Design Framework (or the "Winter Package"), and we hope it will not stand in stark (ahem) contrast to the Conservative Government's Energy Strategy, which should arrive shortly beforehand. As it was recently put, "Hinkley Point C is a 20th century solution to a 21st century problem". Whatever your view of that decision, there is no doubt that the need to embrace 21st century solutions is more pressing than ever.
The ITRE report, approved on Tuesday, makes the case for energy storage within the context of the European energy market, and advocates a comprehensive definition of energy storage within the legislative text of the European Commission’s New Energy Market Design framework, also known as the ‘Winter Package’. “The growing share of variable renewable energy sources in the electricity mix requires stable backup from flexible and sustainable energy sources, and flexible technologies such as storage and demand-response,” the ITRE said in the report. “Energy storage is a key tool for bringing greater flexibility and efficiency to energy markets, but… there is still no regulatory mechanism in place making it possible to take advantage of an efficient storage system.”