European carbon emissions are on track for a 17% reduction this year, thanks to a higher proportion of renewables used to meet demand. A combination of wind and solar power could make up the largest share of power capacity in Europe’s major markets as early as 2023, according to Wood Mackenzie.
For battery owners, swings in prices when renewables hit the grid could be a major opportunity. Batteries can charge up when solar and wind generation is plentiful and market rates are low, and then sell power to the grid when prices are higher. With enough capacity on the system, buying and selling from battery operators could ultimately help ease the price swings.
The U.K., Ireland, Italy, France and Germany have high potential for growth in the short-term, according to Marek Kubik, market director for U.K. and Ireland at Fluence Energy LLC.
Factors such as retiring thermal generation, fast-growing variable renewable generation and a move to electrify sectors like transport and heat all point to a need for flexibility that can be easily supplied by battery-based energy storage, he said.
--With assistance from Ewa Krukowska.
This article was provided by Bloomberg News.