Store or sell? How Belgium should address the impending electricity surplus

Belgium's high-voltage grid operator, Elia, recently raised concerns about a potential electricity oversupply this summer due to the rapid growth of (residential) solar panel installations across the country. With projections indicating around 10 gigawatts of installed solar capacity by July 2024, Elia foresees scenarios where this solar energy, combined with high nuclear availability, leads to substantial power surpluses at moments of low consumption. This unprecedented situation calls for a new, more flexible, approach. In this blog, we outline our vision and potential solutions.

Elia has urged all market participants to stay vigilant. The likelihood of power surpluses during periods of high solar output and low consumption is significant. If the market fails to self-regulate, Elia has several technical interventions at its disposal. Export to our neighboring countries may be part of the solution, but what if those countries face a similar situation??

In that case, Elia will have to locally resolve the situation of oversupply through the activation of domestic flexibility. This flexibility might be scarce in situations of oversupply, resulting in potentially very negative prices. Elia anticipates that market parties might respond to these negative prices by reducing power production or increasing consumption. In exceptional circumstances, the grid operator considers the forced shutdown of production sites.

Energy storage as an additional solution

Long story short, our country is prepared for a power shortage, but much less so for a surplus. That is why flexibility will become even more important as more renewable capacity is getting connected to the grid. As a leading energy producer, Energy Solutions Group recognizes the challenges and opportunities presented by this evolving energy landscape. Our commitment to innovation and sustainability drives us to proactively address the issues highlighted by Elia. One of the key strategies we are implementing is the development of battery parks to manage potential overproduction effectively. A path the UK has been following for some time.

We expect to open our first two battery parks in the coming years. Once operational, these parks will be a great asset to deal with the variable output of renewable energy. These battery parks will serve as a buffer, absorbing surplus electricity and releasing it back into the grid when needed, thus enhancing grid stability and allowing more renewables to be integrated into the grid.

Looking ahead

The rapid growth of renewable energy sources like solar and wind is a positive development for reducing carbon emissions and combating climate change. However, it also requires innovative approaches to manage the resulting fluctuations in energy production. Energy Solutions Group is at the forefront of this transition, leveraging battery storage and flexible energy management to turn potential challenges into opportunities. Through our initiatives, we aim to play a crucial role in shaping a sustainable energy future for the Benelux region and beyond.