Battery Storage Systems Are the Key to Grid Stability and Fair Network Charges

As the energy supply landscape continuously evolves, the Frequency Containment Reserve (FCR) and network charges play a crucial role in maintaining grid stability and equitable cost distribution within the power network. But what exactly are these concepts, and how can modern technologies like battery storage systems help overcome challenges in both areas?

FCR, or Frequency Containment Reserve, is an essential mechanism in the power network that contributes to stability by balancing frequency fluctuations. This type of control energy is activated when the network frequency deviates from the standard value—normally 50 Hz in Europe. The swift addition or removal of power from the network stabilizes the frequency, which is vital for the functionality and safety of the entire power system.

Lars Stephan recently discussed the uneven distribution of FCR revenues and the need for additional control reserves in Europe impressively. He highlighted how the deployment of battery storage can contribute to grid stabilization.

For operators of such energy storage systems, this represents a profitable investment in the stability of our power infrastructure. For customers, the resulting stabilization means an increasingly fair distribution of network charges.

Network charges are fees for the use of the power network infrastructure. They cover the costs of operation, maintenance, and expansion of the network and are usually borne by consumers. These fees can vary by region and network load, leading to an unequal burden on consumers.

This is where battery storage comes into play, with enormous potential to make the distribution of network charges fairer while also improving grid stability. By quickly supplying or absorbing energy, battery storage not only supports the FCR through efficient frequency regulation but also relieves the network during peak times. This can lead to reduced network congestion and thus lower network charges, as fewer investments in network infrastructure are necessary. Simultaneously, they allow for a more flexible and efficient use of renewable energies, contributing to a more sustainable energy supply.

In this article, we will explore the complex interactions between FCR, network charges, and battery storage and demonstrate how these technologies can work together to enable a fairer, more stable, and future-ready energy management.

How are FCR and Network Charges Interconnected?

FCR and network charges are intimately linked. An efficiently operated and well-regulated power network, supported by FCR, can lead to more efficient network use. This, in turn, can reduce the long-term need for costly network investments and reflect in lower network charges. Regional differences in network infrastructure can lead to varying network charges, but battery storage could help balance these discrepancies. Here's a straightforward explanation of their relationship:

1. FCR - Frequency Containment Reserve: This is a type of control energy used to maintain the stability of the power network's frequency. When the frequency deviates from the set point (usually 50 Hz in Europe), FCR is activated to quickly rebalance the frequency. This is done by adding or removing power from the network. Operators of FCR capacities, such as battery storage, receive payments for providing this service.
2. Network Charges: These fees are levied by users of the power network to cover the costs of operation, maintenance, and expansion of the network. They are a crucial part of consumers' electricity bills and vary depending on the region and network operator.
3. Connection: The indirect connection between FCR and network charges is that an efficiently operated and well-regulated power network, supported by services like FCR, can help ensure network stability. This, in turn, can lead to more efficient network use and reduce the long-term need for costly network investments, which could be reflected in lower network charges.
4. Regional Differences: In regions with less developed network infrastructure or insufficient control energy capacities, network charges could be higher to cover the additional costs of network expansion and maintaining stability.
5. Influence of FCR: Providing FCR can indirectly contribute to network stability, which could potentially lead to a reduction in network charges, as fewer investments are needed in the network to ensure stability.

In summary, the relationship between FCR and network charges is an example of how various aspects of power network management and energy supply interlock to improve the overall efficiency and stability of the energy system.

What Significance Do Grid-Connected Battery Storage and Home Storage in PV Systems Have?

We observe a clear disparity in FCR revenues across Europe and a similar pattern at the national level. In Germany, there is a significant uneven distribution of network charges. The economic region in the northeast suffers from higher electricity prices, and political acceptance for the development from fossil fuels, which create dependence, to renewable energies, which provide independence, has significantly declined.

It's striking that the region with significantly higher network charges has a particularly low density of battery storage. The data can be found on the websites of the Federal Network Agency and Battery Charts by Dr. Jan Figgener et al.

Grid-connected battery storage systems and home storage in PV systems both play a decisive role in energy management and grid stability. While grid-connected storage directly contributes to the stabilization of the network frequency, home storage increases the self-consumption of solar-generated electricity and reduces the load on the public power network. Together, they enable more efficient energy distribution and contribute to the integration of renewable energies.

1. Battery Storage as Control Reserve: Direct Network Support: These storage systems are directly connected to the power network and provide control energy, such as the Frequency Containment Reserve (FCR). They actively help stabilize the network frequency by quickly feeding energy into the network or drawing from it as needed. Network Relief: By capturing peak loads and supplying energy when necessary, they contribute to reducing network bottlenecks. Economic Efficiency: Operators of these storage systems generate revenue by participating in the control energy markets.
2. Battery Storage in Home Applications (PV Storage): Indirect Network Support: These storage systems are typically part of a photovoltaic system and are used to store self-generated solar electricity. They reduce dependency on the power network by increasing the self-consumption of the produced solar electricity. Network Relief: By increasing self-consumption, these systems lessen the burden on the public power network, especially during peak load times.Flexibility and Independence for Consumers: Home storage systems allow households to optimize their energy consumption and reduce energy costs.

Common Benefits:

• Integration of Renewable Energies: Both types of storage contribute to the integration of renewable energy sources by balancing the variability and intermittency, especially of solar energy.
• Grid Stability: They support grid stability by contributing to frequency and voltage regulation, which can in turn reduce network charges and the need for expensive network expansions.

In conclusion, battery storage, both in the form of control reserves and home applications, plays a vital role in promoting a more efficient and sustainable energy system. They complement each other by addressing different levels and requirements of energy management and grid stability.

What are the Impacts of the Federal Ministry for Economic Affairs and Climate Action's Energy Storage Strategy?

As reported by pv magazine, the exemption from network charges outlined in the energy storage strategy by the Federal Ministry for Economic Affairs and Climate Action has far-reaching effects. It improves the economic efficiency of storage operators and creates incentives for expanding storage capacities. This, in turn, promotes a more sustainable energy supply and could lower energy prices for consumers in the long run.

1. Increased Economic Viability for Storage Operators: The operating costs for energy storage are reduced, enhancing the economic appeal and attractiveness of operating such facilities.
2. Incentive for Expanding Storage Capacities: The reduction in overall costs for storage projects creates financial incentives that make investing in new storage technologies and expanding existing capacities more attractive.
3. Promotion of Renewable Energies: The storage of electricity, especially from renewable energy sources, becomes more attractive. This can lead to more efficient use of renewable energies by storing surplus electricity and using it as needed.
4. Improvement in Grid Stability and Efficiency: Energy storage can contribute to grid stability by capturing peak loads and storing energy during low-demand periods. The exemption from network charges supports this contribution to grid regulation.
5. Increased Planning Security for Storage Projects: The extension and possible perpetuation of the network charge exemption creates more planning security for companies and investors in the field of energy storage.
6. Positive Effects on Energy Prices: In the long term, the promotion of energy storage through the exemption from network charges could lead to more efficient energy distribution, which may positively affect energy prices for end consumers.

Overall, the energy storage strategy is expected to accelerate the transition to a more flexible and sustainable energy system.

What Developments Can We Expect in Battery Storage by 2030?

We are facing a significant increase in demand and expansion of battery storage. This growth is driven by technological advancements and cost reductions, leading to a central role for battery storage in energy management. Participation in the control energy markets and support through political measures like the network charge exemption will continue to increase.

1. Increased Demand and Expansion: With the growing importance of grid stability and the integration of renewable energies, the demand for battery storage is expected to rise sharply. This will drive the expansion of both grid-connected battery storage and home storage in PV systems.
2. Technological Advances and Cost Reduction: The technology behind battery storage will continue to evolve, resulting in more efficient, durable, and cost-effective storage solutions. This could further accelerate the adoption and application of battery storage.
3. Integration into Energy Management: Battery storage will play a central role in energy management and grid regulation. In particular, their ability to serve as Frequency Containment Reserve (FCR) will make them an essential part of grid stability management.
4. Economic Incentives and Regulatory Support: Initiatives such as the network charge exemption and other political measures are expected to continue to provide economic incentives for investing in battery storage technologies. This will apply to both grid-connected storage and home storage.
5. Increasing Role in Decentralized Energy Supply: With the trend towards decentralized energy sources, battery storage will play a key role in providing energy independence and flexibility for consumers, particularly in conjunction with PV systems.
6. Contribution to Reducing Network Charges: By providing control energy and improving grid stability, battery storage can indirectly contribute to lowering network charges by reducing the need for expensive network expansions.
7. Enhanced Market Integration: The participation of battery storage in the control energy markets is expected to increase, as they offer a flexible and rapid solution for frequency regulation
8. Environmental Impact and Sustainability: There will be an increasing awareness of the environmental impacts of battery production and disposal. This could lead to improvements in the sustainability of batteries and enhanced recycling initiatives.

In summary, battery storage is expected to play an increasingly vital role in a rapidly changing energy system focused on sustainability, efficiency, and the integration of renewable energies.

References:

• www.dhirubhai.net/posts/lars-stephan_who-is-even-more-excited-about-christmas-activity-7148953774789709826-xGL2 by Lars Stephan
• www.bundesnetzagentur.de
• battery-charts.rwth-aachen.de by Dr. Jan Figgener et al.
• www.researchgate.net/publication/369479477_The_development_of_battery_storage_systems_in_Germany_A_market_review_status_2023 by Dr. Jan Figgener et al.
• www.pv-magazine.de/2023/12/18/bmwk-legt-stromspeicherstrategie-zur-konsultation-vor by Marian Willuhn