The Power of Energy Storage in the Energy Transition

Energy storage is the driving force we need to build a sustainable and carbon-free future. The power of energy storage in the energy transition is unquestionable and unstoppable!

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The world is in excitement over renewable energies, which gain more prominence day by day, both globally and in Portugal. Europe promises to become the first carbon-neutral continent by 2050. The Portuguese Government has set an ambitious goal for Portugal: 85% renewable energy by 2030.

The growing awareness of the negative impacts of fossil fuels and the urgent need to reduce greenhouse gas emissions to combat climate change, as well IEA more positive predictions to 2030, are still, now, contradicted by reality.

The continued dependence on fossil energies is most evident in critical sectors such as transportation, industry, and electricity generation, where natural gas is significantly used. This persistent reliance represents one of the greatest challenges in the path towards renewable energy sources.

In the transportation sector, fossil fuels like gasoline and diesel continue to be the backbone that powers most vehicles in operation. This is noticeable on roads worldwide, where most vehicles still rely on burning fossil fuels. Although awareness of air pollution and climate change has led to an increase in the production and adoption of electric vehicles, the transition is still underway.

In the industry, the use of fossil fuels is a significant source of energy for manufacturing and production processes. Many industries rely on coal and natural gas as primary energy sources to power machinery and facilities. The transition to renewable energy sources is challenging, as industries often have high energy demands and depend on a reliable energy supply. However, as more efficient technologies and renewable energies become more accessible, the industry, increasingly aware of and committed to the energy transition, is already seeking solutions to reduce its carbon footprint.

In electricity generation, the dependence on fossil fuels is particularly notable in many countries where coal and natural gas power plants still represent a significant portion of the generation capacity. These power plants have been the backbone of electrical systems for decades, providing a constant supply of electricity. The shift to renewable energy sources such as solar, wind, and nuclear power is a time-consuming and challenging process. However, it is crucial to reduce greenhouse gas emissions and combat climate change.

The European Council has repeatedly emphasized the need to expedite the energy transition and strengthen the energy market in Europe. This emphasis reflects the increasing understanding that the transformation of the energy system is essential not only to meet growing demands but also to address challenges related to energy security and environmental protection.

Europe is committed to ensuring fair access to energy for all its citizens, recognizing that energy is an essential resource for quality of life and the functioning of society. This inclusive approach seeks to ensure that no one is left behind in the transition to cleaner and renewable energy sources.

Furthermore, energy supply security is a critical concern for Europe, given its dependence on external energy sources, as recently demonstrated by the impact of Russia's invasion of Ukraine, reinforced by the ongoing impact of conflicts in the Middle East and the volatility of fossil fuel prices. Diversifying energy sources and reducing dependence on fossil fuel imports are key strategies to ensure stability and reliability in the energy supply in the region.

This ambition extends not only to transitioning to cleaner energy sources but also to energy efficiency. Improving energy efficiency is an effective way to reduce overall energy consumption and minimize environmental impact. Moreover, Europe is committed to promoting the development of renewable energies, such as solar and wind, which not only reduce carbon emissions but also create job opportunities and stimulate sustainable economic growth.

The intensification of energy network interconnections between Member States is another cornerstone of the European strategy. This allows for more effective energy sharing among countries, ensuring the system's resilience and the ability to respond to unforeseen challenges.

Very recently, the Council of the European Union reached a consensus (general approach) on a proposal to amend the EU electricity market design. This paves the way for discussions between the European Council and the European Parliament, ultimately aiming for a final agreement.

This substantial reform, now slated for negotiation between the European Council and the European Parliament, primarily aims to (i) reduce dependence on electricity prices' volatility due to fossil fuel price fluctuations, (ii) safeguard consumers from sudden price spikes, (iii) expedite the adoption of renewable energy sources, and (iv) strengthen consumer protection.

In the energy transition process, the misalignment between renewable energy production and consumption is evident. The intermittent and uncontrollable nature of renewable sources often leads to situations where production exceeds demand or demand exceeds production. It is in this critical phase that energy storage systems become indispensable. These systems allow excess energy generated during high production periods to be stored for later use when production is lower or demand is higher.

Energy storage systems are crucial in the energy transition, ensuring a continuous availability of renewable energy, strengthening a constant energy supply, reducing dependence on fossil fuels, and promoting environmental sustainability.

Currently, there is a wide range of energy storage solutions and technologies in development and use, such as batteries, green hydrogen, thermal storage, or compressed air storage.

Moreover, Portugal has been a pioneer in implementing renewable energy storage systems. The launch of the renewable energy storage program in 2019 is a clear example of the country's commitment to driving this field. Additionally, the National Recovery and Resilience Plan plans to finance investments in hydrogen and renewable gases supporting energy storage projects, thus contributing to a national storage strategy with the goal of installing 1 GW of energy storage capacity by 2030.

At the European level, the European Commission presented the Net-Zero Industry Act in March, a plan aimed at increasing the European Union's production capacity for technologies that support the transition to cleaner energies for a greener industry. One of the priorities of the Net-Zero Industry Act is precisely the construction of a battery industry in Europe in response to countries like China and the United States.

Similarly, the "Fit for 55" package, which aims to reduce greenhouse gas emissions by 55% by 2030 in Europe, provides state aid to support renewable energy investments and energy storage.

The national energy future, in the medium and long term, revolves around the electrification of society through widespread use of renewable energy, and energy storage plays a fundamental role in this transition to a sustainable and emission-free system. To meet this challenge, it is necessary to accelerate investment in European energy storage capacity, particularly in Portugal.

Energy storage plays a fundamental role in the successful transformation of our energy system. It acts as a key element that balances energy availability with demand, and this function is essential to ensure a continuous and stable energy supply. In an ever evolving and unpredictable world, where energy generation from renewable sources like wind and solar is intermittent, energy storage steps in as the cornerstone of our electrical system's reliability.

Moreover, it plays a crucial role in the efficient integration of intermittent renewable energy sources. For example, when the sun shines brightly or the wind is strong, excess generated energy can be stored for later use. This flexibility is a key component in maintaining the reliability of the electrical grid and reducing the need to rely on more polluting energy sources.

Energy storage also plays a vital role in ensuring a continuous and reliable electricity supply. This is particularly important in emergencies, such as disruptions in the electrical grid due to natural disasters. Having energy storage systems in place is like having insurance that ensures the lights stay on, hospitals keep functioning, and industries don't stop, regardless of adverse circumstances.

In summary, Energy storage is an strategic key to a successful energy transition as it ensures a balance between supply and demand.

It is an essential part of our energy security and, therefore, our independence and autonomy.

An efficient storage solution enables the integration of intermittent renewable sources and guarantees a continuous and reliable energy supply. It is, therefore, a powerful driving force we need to speed up a sustainable and carbon-free scenario.

?The power of energy storage in the energy transition is unquestionable and unstoppable - if we just unlock all its potential…