Unlocking the Potential of Renewable Energy in Agriculture

Negative electricity prices in Europe continue to intensify, especially in markets where renewable electricity is increasingly penetrating the grid, such as Spain, Germany and the Netherlands. Negative electricity prices in Europe are associated with abundant renewable energy generation, lower demand, insufficient storage system capacity and inadequate energy planning.

图片19z7

The duration of negative electricity prices in the Netherlands increases year by year

According to Dutch energy market data recently released by Strategy, a Dutch research institution, from January 1 to August 14 this year, the Dutch EPEX spot futures market had a total of 347 hours of negative electricity prices, which has exceeded the 316 hours of negative electricity prices last year.

The root cause of this phenomenon is the rapid growth of renewable energy such as solar and wind power, which has led to a serious oversupply of electricity in certain periods of time, and the grid regulation capacity has failed to keep up in time, thus triggering the negative electricity price mechanism. This also means that power generators need to pay fees to electricity buyers, and electricity buyers not only do not need to pay electricity bills, but can instead earn income.

Analysts at Strategy pointed out that as the amount of electricity generated by renewable energy continues to rise, negative electricity prices are becoming more frequent and are expected to continue to intensify in the next few years. The Netherlands will have negative electricity prices for 450 to 550 hours this year. It is worth noting that the growth in solar and wind power generation is significantly correlated with the increase in the length of negative electricity prices in the energy market on the previous trading day.

Specifically, negative electricity prices are most common during the day in summer, because the weather is clear and the solar power generation is sufficient. In addition, the electricity demand is relatively low during weekends and holidays, which makes it easier to have oversupply, thus triggering the negative electricity price mechanism. In addition, the company's analysis also revealed another trend: during the night hours and cold weather conditions, the wind is often stronger, and the wind power generation will increase significantly, which will also lead to an oversupply of electricity, thereby reducing the electricity price to a negative value.

Analysts said that the continued growth of solar and wind power generation in the Netherlands will undoubtedly lead to a significant increase in the duration of negative electricity prices. It is expected that in the next few years, electricity supply will far exceed demand during specific periods of time, resulting in a significant increase in the duration of negative electricity prices. It is expected that by 2025 it will increase significantly to 550 to 750 hours.

More and more renewable energy developers are selling power in advance to avoid negative electricity prices, especially under the SDE+ incentive program for large renewables in the Netherlands. He added that although the number of negative electricity prices has increased rapidly this year, grid congestion and capacity restriction contracts may reduce the extent of the price reduction.

Energy storage systems help alleviate negative electricity prices

Relevant industry experts pointed out that due to the further growth of renewable energy power generation, the increase in electricity demand brought about by electrification, and the gradual elimination of fossil fuel power plants, the duration of negative electricity prices in Europe will continue to increase.

In order to alleviate the negative electricity price phenomenon, energy storage systems can play the following important roles in alleviating the negative electricity price problem:

1.Balancing supply and demand:

Energy storage systems store electricity when there is excess generation from renewable energy and release it when electricity demand peaks, effectively balancing electricity supply and demand and reducing the occurrence of negative electricity prices.

2.Economic incentives

By taking advantage of the peak-valley price difference in the electricity market, the energy storage system charges during low-price periods and discharges during high-price periods, which not only reduces user costs but also improves the economic benefits of operators.

3.Reducing power curtailment

During periods of negative electricity prices, energy storage systems avoid electricity waste and store electricity for later use, thereby improving the economic benefits of power generation companies.

4.Enhance grid stability

The rapid response and regulation capabilities of energy storage systems help stabilize grid voltage and frequency, reduce negative electricity prices caused by grid fluctuations, and can serve as an emergency backup power source.

5.Promote the development of renewable energ

Energy storage systems improve the utilization rate of renewable energy, promote the widespread application of renewable energy, and at the same time promote the advancement of energy storage technology and cost reduction.

Energy storage systems can effectively alleviate the problem of negative electricity prices by balancing supply and demand, improving economic benefits, enhancing grid stability and promoting renewable energy consumption. With the continuous advancement of technology and further reduction of costs, energy storage systems will play a more important role in Europe's future energy system.

Negative electricity prices have become the norm in Europe and other places. EU countries should set energy storage deployment targets, systematically include energy storage systems in renewable energy auctions, and allow battery energy storage systems to operate in all electricity markets.

Development trend of European energy storage market

The installed capacity of large-scale energy storage systems is growing rapidly: It is expected that the installed capacity of large-scale energy storage systems in Europe will exceed that of household energy storage systems for the first time in 2024, becoming the main force driving the growth of the energy storage market. Countries such as the United Kingdom, Germany, and Italy have performed outstandingly in the deployment of large-scale energy storage projects.

1.Driven by both policies and markets

European governments have promoted the development and application of energy storage technology by formulating a series of incentive policies, such as tax exemptions and subsidies. At the same time, the market-oriented reform of the electricity market has also provided more opportunities for participation and profit channels for energy storage technology.

2.Localization of the industry chain

2.In order to reduce external dependence, Europe is accelerating the localization of the energy storage industry chain. By setting goals, introducing regulations and fund support, local companies are encouraged to increase R&D investment and production scale.

In short, the increasingly serious negative electricity price phenomenon in Europe not only exposes the lack of grid flexibility, but also highlights the importance of energy storage technology in energy transformation. With the continuous improvement of technology, cost reduction and policy support, Europe's energy storage demand has surged, and the energy storage market has entered a period of rapid development. In the future, energy storage technology will play a more important role in alleviating the negative electricity price problem and energy transformation in Europe.

2024-08-14 16:01:46