Interview Storage Magazine

Where the netcongesIf the map of the Netherlands is red, large-scale electricity storage offers enormous potential. This can provide the necessary flexibility to better utilize the grid. Can subsidizing storage systems significantly accelerate the rollout? Guus Bengsch of Green Energy Storage, doesn't see it as the most necessary measure. 'First, governments and grid operators must get the basics right and remove barriers.

Both the provinces of Drenthe and North Holland introduced new schemes this year to encourage electricity storage. In both cases, this was prompted by major and acute problems on an overloaded power grid. Drenthe pulled 200an additional .000 euros allocated to the Netcon Solutions subsidy schemegesA tie-up with Sustainable Energy Generation, which it launched earlier this year, had depleted two-thirds of that fund within six months, primarily due to projects using batteries to store solar power. In North Holland, €1,5 million is available, including for "power sharing on industrial estates or for farmers who want to store surplus solar power in a battery."

More interesting question

What's the point and nonsense of these kinds of subsidies? Do they really help in tackling the full power grid, for example, with a view to connecting new businesses and renewable energy installations? Storage Magazine asked Guus Bengsch, managing director of Green Energy Storage in Breda. He sees a more interesting question: what is currently blocking the mass introduction of batteries, how can this be resolved, and what role can subsidies play? According to him, financial incentives cannot be viewed separately from the development of a comprehensive vision for the future of storage in the Netherlands and supporting integrated regulations.

Optimal utilization

Relieving the burden on the full power grid is actually core business for Green Energy StorageThe company, whose foundation was laid in 2018, develops systems for storing large amounts of energy at wind and solar farms. By intelligently regulating generation and storage, it facilitates optimal utilization of the existing grid connection. This helps relieve the burden on the power grid. Bengsch: "We collaborate with all stakeholders involved on various challenges surrounding the deployment of large-scale energy storage, for example, regarding spatial and technical integration, permits, financing, and supplier selection. We can now draw on practical experience from three major projects."

Mobile and stationary

Green Energy Storage In 2018 and 2019, Greenchoice Inc. installed a 10-megawatt-hour stationary storage system at Hartel 2 Wind Farm. This wind farm has a capacity of 10 megawatts. The battery is used there to maintain balance on TenneT's high-voltage grid. A second project with similar functionality involved the construction of a charging plaza for 3,5 megawatt-hours of mobile batteries at Hellegatsplein Wind Farm. And at the end of 2021, De Dijken Solar Park was commissioned in the polder between Warmenhuizen and Tuitjenhorn. This "solar park of the future" features 30.000 bifacial solar panels, 22 mobile batteries—with a total storage capacity of 7 megawatt-hours—and a charging plaza. Greenchoice uses the batteries to balance the power grid by charging when there is a surplus and discharging when there is a shortage. Green Energy Storage was particularly responsible for the AC and charging station section of the park.

Murderous pace

"The combination of producing and storing sustainable energy, as in these projects, offers great opportunities," says Bengsch. "We are proving this in practice by using our batteries to store green energy in combination with balancing services. Parallel to this, thegesSolar farms are being developed at a breakneck pace, which is also good for the energy transition. Grid operators are, in principle, obligated to purchase electricity, but that is difficult during periods of large surpluses. Therefore, an effective system for consolidating power has been in development for a long time.gesTie management, where large consumers and producers receive compensation if they adjust their capacity up or down. This is also available. The regional grid operators and TenneT developed GOPACS, a platform on which flexible capacity can be offered. However, actual usage is much lower than one might expect given the situation on the electricity grid. Perhaps the government can also contribute with regulations or financial incentives.

Uitgescounted delivery

Bengsch calls for greater ambition and more action regarding the creation of a market for congesTie management. He puts the ball in the grid operators' court. "I also sometimes have an uneasy feeling about the urgency, or the sense of urgency. There's a lot of talk about overload; I see the map of the Netherlands turning red. But how do we verify that, and where exactly is the problem?" Bengsch also watches with interest what's happening in government offices. For example, they've been considering mandating storage in the development of a solar park for some time, an idea he embraces. The introduction of a separate SDE++ category "out ofgesHe has his doubts about the 'priority of supply' over the market, as well as the introduction of all kinds of regional financial incentives for battery projects.

Working on the basics

"Even without subsidies, projects like Hartel, Hellegatsplein, and De Dijken are highly profitable," Bengsch emphasizes. "So they can be implemented without subsidies. However, from an acceleration perspective, it can be an excellent tool; I have no objections in principle. But first, we need to work on the foundation, for example, by accelerating GOPACS and formulating clear objectives for the speed at which we want to roll out storage in the Netherlands. Furthermore, existing barriers in legislation and regulations must be removed. For example, grid operators awarding longer-term higher transport costs because you briefly charged at peak capacity to relieve the grid is extremely counterproductive. Moreover, we are, of course, talking about new technology and applications in an immature market, which makes financing challenging. There are hurdles to overcome in that area as well. Therefore, it is necessary to adapt on many fronts. At the same time, it is clear that our sector has a bright future ahead of it; storage is essential if we want to realize the energy transition." And a lot is already possible now, as we have been demonstrating since 2018.'