On 28th of January 2015, the FCH JU launched its publication of its report “Commercialisation of Energy Storage in Europe”, funded by the FCH JU and compiled by a coalition of 32 organisations including Shell, Siemens, Alstom, Vattenfall and Eurogas.

The preliminary findings of the report identify the European energy storage potential for electrolysis as several hundred GW with up to 170GW in Germany alone, if 2050 decarbonisation targets are to be met. It states the use of electrolytic hydrogen in the gas grid, mobility or industry can productively utilize nearly all excess renewable energy, unlike power-to-power storage (such as batteries) whose utilisation becomes compromised as the renewables penetration increases. The report recommends policymakers to address the low degree of regulatory acknowledgement of storage as a specific component of the electric power value chain and to exempt electrolysers from final consumption fees.

Other key findings of the report include:

– Storage can create value in the short run, but reviewing regulation is key to unlocking this opportunity.
– Storage demand will depend on country-specific characteristics, in particular the level of interconnectivity, and island countries like the UK will require the most storage.
– Conversion of electricity to heat and heat storage is a proven and relatively low cost option for providing flexibility to the power system, but its potential is limited by the share of electricity demand used for heating and its seasonal variation.
– Conversion of electricity to hydrogen and its use in the gas grid (power-to-gas), hydrogen mobility or industry can productively utilize nearly all excess renewable energy.

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Link to the report  “Commercialisation of Energy Storage in Europe”