Energy storage, smart-charging electric vehicles, demand response and interconnectors can accelerate the transition to a cleaner power system and ultimately enable the efficient integration of 80% or more renewable energy by 2040, according to two new reports published today by BloombergNEF (BNEF) in partnership with Eaton and Statkraft.
The “Flexibility Solutions for High-Renewable Energy Systems” reports model a number of alternative scenarios for future power systems in the U.K. and Germany, respectively, depending on how each flexibility technology might develop in the coming years.
Energy storage and smart electric vehicle charging provide flexibility by moving large volumes of renewable energy to periods of high demand, or moving demand to periods of high renewable generation. Dispatchable demand response reduces the need for fossil-fired backup plants in the power system, reducing emissions. Interconnecting to Nordic hydro can address periods of both excess supply and excess demand, providing different benefits over the decades as the needs of the system evolve.
The two studies – focused on the U.K. and Germany – highlight that policies and regulation accelerating the adoption of these technologies are key to make a cleaner, cheaper and more efficient power system possible.
“There is now little doubt that renewable energy will be the dominant force in the power sector for decades to come. The next challenge is to make sure these sources are complemented by clean forms of flexibility – storage, demand and interconnection – to deliver cheaper, deeper decarbonization,” said Albert Cheung, head of global analysis at BloombergNEF.
“The relentless advance of solar and wind energy technologies are driving us inexorably towards an electricity system dominated by variable renewable power generation. Combined with the expected growth in electric mobility, we are now in the midst of an energy transition which will massively lower carbon emissions and improve air quality. However, this opportunity will be limited unless energy markets are designed and regulated in a way that unlocks the full value of flexibility in the electric system. The time is already upon us to prepare and start investing in the technologies, services, and modifications that can enable our energy system to cope with the dramatic shift in how we generate and use electricity,” said Cyrille Brisson, Eaton EMEA vice president of sales and marketing.