‘Multiple stakeholder’ model key to community storage business case, says DNV GL

Share on linkedin
Share on twitter
Share on reddit
Share on facebook
Share on email

Image: Portland General.
A ‘multi-stakeholder’ approach, where different parties benefit from batteries at different times, could be the key to enabling communities to deploy grid-connected energy storage systems, DNV GL has said.

The technical services and certification group has just launched a consortium to examine the feasibility of community battery systems in both social and economic terms. Also joining Netherlands-headquartered DNV GL in the consortium will be Peeks, a commercial aggregator which trades flexibility in energy systems and Alfen, which manufactures and integrates substations, energy storage systems, EV chargers and other equipment for the grid.

The group has committed to producing a framework document by September 2017. Community battery storage, which is on the utility side of the meter and shared in ownership, can benefit distribution and transmission network operators by helping them integrate more renewables and balance their electricity systems. However, DNV GL said, there is no solid business case for their deployment yet.

Grid codes and other regulatory restrictions at present prohibit grid operators from owning storage, as this would mean they are participating in commercial markets for electricity. Changing these codes, as well as enabling more collaborations between stakeholders that include network operators, energy suppliers and customers, could help boost the business case. In other words, business models that allow for the “stacking” of multiple benefits and therefore revenue streams need to be developed.

One example cited by DNV GL in announcing the news is that energy storage can be used in low voltage systems by grid operators to avoid expensive upgrades to infrastructure. However, systems used for such purposes may be underutilised and only used for short periods of the year equating to about 10% of the time the system is available. Allowing another party to use the storage system during the remaining 90% of the year, perhaps to trade energy in markets such as primary reserve or the spot markets operated in Holland, Belgium and the UK by APX Group, would allow grid operator and consumers alike to benefit.

“Allowing commercial activities is essential to make community storage a good investment,” DNV GL said.

“Stakeholders are expected to benefit from lower network operation and management costs and build a more robust network for the future.”

In a recent guest blog for Energy-Storage.News, Julian Jansen of Delta-ee highlighted that out of three disruptive business models for energy storage in Europe, community storage was less likely to impact the market in the short term than so-called “shared ownership” or “storage for free” models.

Read Next

January 11, 2022
With the European energy transition seemingly in full effect, why isn’t the Netherlands all in on energy storage? Andy Colthorpe speaks with Ruud Nijs, CEO of GIGA Storage and member of the board for Energy Storage NL (ESNL).
December 9, 2021
EDF-owned UK battery storage developer-investor Pivot Power has started work on a 50MW/100MWh battery storage facility as part of its second Energy Superhub project.
December 7, 2021
The new edition of our quarterly journal PV Tech Power, volume 29, is now available to download, including our comprehensive cover story on solar’s critical next decade.
December 1, 2021
Construction has begun on a 150MW / 150MWh battery storage project at the site of a former fossil fuel plant site in Victoria, Australia.
November 15, 2021
Horizon Power, an electricity supplier owned by the state government of Western Australia has begun commissioning community battery storage to allow nine remote towns to use more rooftop solar power. 

Most Popular

Email Newsletter