What is the regulatory trend for new energy storage

Should energy storage systems be regulated?

Energy storage systems play a major role in this regard. Available options for revised regulation —Ideally, connecting to the grid should imply a commitment to pay for all of the network costs caused. Let us consider, just as an example, a typical scheme for a private regasification facility.

Why is storage a regulatory challenge?

Consequently, this involves two kinds of regulatory challenges, because storage competes with different types of services. The first kind of regulatory challenge is related to wholesale market design, because flexibility services can be sold in “competitive” wholesale markets (energy, ancillary services, etc.).

How do energy storage technologies affect energy supply and demand?

Thus, in addition to flexibility measures and power grid expansion, energy storage technologies play a crucial role in equalizing fluctuations, compensating imbalances between power generation and demand through a coordinated electricity supply and energy time shift ( Hesse et al., 2017 ).

Why are energy storage systems becoming more centralized?

This motivated a shift toward more centralized system (e.g., market coupling) and more locational pricing (e.g., more than one price zone). This choice is being challenged, as one of its main motivations (lack of storage) is changing with energy storage systems.

What does the European Commission say about energy storage?

The Commission adopted in March 2023 a list of recommendations to ensure greater deployment of energy storage, accompanied by a staff working document, providing an outlook of the EU’s current regulatory, market, and financing framework for storage and identifies barriers, opportunities and best practices for its development and deployment.

Can energy storage provide a large set of Energy Services?

With regard to market design, energy storage is allowed to provide a large set of energy services, according to relatively recent modifications of Californian power market. Currently, energy storage may be used for Daily, weekly, and seasonal arbitrage.