Summary
Up to $3 trillion must be invested in large-scale energy storage (LES) to deal with the intermittency of renewable energy and achieve net zero by 2050. Yet, critical questions remain open: 1) Will this substantial investment in LES cannibalise its own market? 2) Even if profitable, does the self-interest of private storage investors align with the public goal of achieving net zero? If not, what incentive schemes can be designed to address these two problems? How will these problems evolve from now to 2050 across Europe? This research project will answer these questions, first investigating: (i) the self-cannibalisation (i.e., how the increasing LES deployment can reduce profitability in its own market); (ii) the cross-cannibalisation (i.e., how the increasing renewable penetration will affect storage revenues); and (iii) how the trajectory of these two aspects will evolve from present days until 2050 in Europe. Then, policy recommendations and an incentive scheme will be designed to support merchant investments in this context.
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| Web resources: | https://cordis.europa.eu/project/id/101148367 |
| Start date: | 01-10-2024 |
| End date: | 30-09-2026 |
| Total budget - Public funding: | - 172 750,00 Euro |
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Original description
Up to $3 trillion must be invested in large-scale energy storage (LES) to deal with the intermittency of renewable energy and achieve net zero by 2050. Yet, critical questions remain open: 1) Will this substantial investment in LES cannibalise its own market? 2) Even if profitable, does the self-interest of private storage investors align with the public goal of achieving net zero? If not, what incentive schemes can be designed to address these two problems? How will these problems evolve from now to 2050 across Europe? This research project will answer these questions, first investigating: (i) the self-cannibalisation (i.e., how the increasing LES deployment can reduce profitability in its own market); (ii) the cross-cannibalisation (i.e., how the increasing renewable penetration will affect storage revenues); and (iii) how the trajectory of these two aspects will evolve from present days until 2050 in Europe. Then, policy recommendations and an incentive scheme will be designed to support merchant investments in this context.Status
SIGNEDCall topic
HORIZON-MSCA-2023-PF-01-01Update Date
22-11-2024
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