SolarPower Europe Report Highlights Need for Flexible Power Grids

SolarPower Europe Report Highlights Need for Flexible Power Grids

2024-06-25 green

A new report from SolarPower Europe projects solar energy could meet 39% of Europe’s electricity needs by 2040, stressing the importance of flexible grids to reduce solar curtailment.

Significant Growth in Solar Energy

According to SolarPower Europe’s ‘Mission Solar 2040’ report, the use of solar energy is set to flourish, driven by advancements in grid flexibility and increased electrification. The report anticipates that by 2040, solar energy could fulfill up to 39% of Europe’s total electricity demand. This would require the generation of approximately 1.2 terawatts of solar power. Such a surge in solar energy production would not only make electricity cheaper but also drastically reduce the need for energy curtailment, thereby reinforcing the market position of European solar energy.

Reduction in Solar Curtailment

One of the key insights from the report is the forecasted reduction in solar curtailment—by two-thirds by 2030, and by half by 2040. Curtailment refers to the reduction in output of solar power plants, typically due to limitations in the grid’s capacity to handle the generated energy. By enhancing grid flexibility, Europe can better integrate the increasing volume of renewable electricity, which in turn can lower electricity prices. The report estimates that by 2030, European electricity prices could be 25% lower, and by 2040, they could decrease by up to 33%.

Investment and Policy Recommendations

To achieve these ambitious targets, SolarPower Europe emphasizes the need for clear European goals for renewable energy production and grid flexibility. The organization calls for increased investment in energy system models and grid infrastructure. Additionally, the report suggests that enhancing the capacity of these models can significantly contribute to realizing the potential of solar energy in Europe. These steps are essential for creating a resilient and efficient energy system capable of handling future demands.

Rising Importance of Battery Storage Systems

The rapid growth of the European battery storage market further underscores the need for flexible power grids. SolarPower Europe’s analysis indicates that 17.2 gigawatt-hours (GWh) of new Battery Energy Storage Systems (BESS) were installed in Europe in 2023, marking a 94% increase from 2022. This growth is primarily driven by residential storage systems, which accounted for 63% of the new installations. However, the report predicts a shift towards large-scale battery storage systems, which are expected to account for 45% of newly installed capacity by 2028.

Challenges and Future Projections

Despite the promising outlook, several challenges remain. Regulatory barriers, double grid charges, and varying standards across EU member states are hindering the potential of large battery storage systems. Dries Acke, Vice President of SolarPower Europe, and Michael Schmela, Director of Market Intelligence, both stress the need for immediate political attention to overcome these obstacles. The organization projects that by 2028, the overall installed BESS capacity in Europe could expand more than sevenfold to reach 260 GWh, driven by large-scale systems designed to stabilize the grid and manage peak loads.

Conclusion

The SolarPower Europe report paints an optimistic picture of the future of solar energy in Europe, contingent upon significant advancements in grid flexibility and energy storage. With the right investments and policy frameworks, solar energy could become a cornerstone of Europe’s electricity supply, significantly reducing reliance on fossil fuels and contributing to climate change mitigation. As the continent moves towards these ambitious goals, the role of flexible power grids and advanced battery storage systems will be crucial in realizing a sustainable and resilient energy future.

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