European Union Energy Storage Regulations Pursuant to New Electricity Market Design

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1. Introduction

Energy storage plays an important role in supporting intermittent renewable energy and adding stability and flexibility to the grid, so that the European Union achieves its goal of being carbon neutral by 2050 in accordance with the European Green Deal. At the same time, energy storage; locally, it can accelerate the decarbonization of the electricity grid by improving the management of distribution networks, reducing costs and increasing efficiency, thereby facilitating the market entry of renewable energies.[1] Directive on the Common Rules for the Internal Market in Electricity, which replaces the Electricity Directive; It will provide more flexibility to accommodate the increasing share of renewable energy in the electricity grid, thereby contributing to the fulfillment of the goals of the European Green Deal and the goal of the European Union to become the world leader in energy production in renewable energy sources.[2]

Electricity production with renewable energy sources is expected to grow by more than 50% until 2030, and accordingly, it is important to adapt the electricity market with the needs of renewable energy and to regulate new electricity market rules that will increase investments in energy storage resources that can compensate for energy production.[3 ].To address these issues, the European Union Clean Energy Package for All Europeans was organized in 2019. With this package, an important contribution is made to the long-term strategy of the European Union to achieve its carbon neutral target by 2050, primarily by aiming at energy efficiency, the European Union's global leadership in global warming and renewable energy, and a fair agreement for energy consumers.[4 ] Under the package, four regulations were adopted to help adapt EU market rules to new market realities.

2. Directive (EU) 2019/944 on Common Rules for the Internal Market in Electricity

The Electricity Directive (2009/72/EC) will remain in force until the end of 2020, and the Directive on Common Rules for the Internal Market in Electricity (EU) 2019/944 was created by amending this Directive.[5] This Directive, which is one of the 4 elements of the Electricity Market Design elements, establishes common rules for electricity generation, transmission, distribution, energy storage and supply, together with consumer protection provisions, in order to create truly integrated, competitive, consumer-centered, flexible, fair and transparent electricity markets within the Union.

Utilizing the advantages of an integrated market, this Directive aims to provide affordable, transparent energy prices and costs for consumers, a high degree of security of supply, and a smooth transition to a sustainable low-carbon energy system.[6]

3. Internal Market Regulation (EU) 2019/943 for Electricity

To provide a higher share of renewable energy sources, security of supply, grid flexibility, sustainability and decarbonization aimed with this Regulation, which replaces the Electricity Regulation (2019/941/EC), to form the basis for the effective achievement of the Energy Union and especially the 2030 climate and energy targets. By setting the basic principles for well-functioning, integrated electricity markets, enabling all resource providers and electricity consumers to access the market without discrimination, empowering, protecting and raising awareness of consumers, ensuring competition in the global market, energy storage and energy efficiency, and market and sectoral integration of electricity produced from renewable sources. to enable market-based remuneration; establishing fair rules for electricity cross-border exchanges, providing mechanisms to harmonize cross-border shopping rules so that a well-functioning and transparent wholesale market, including the establishment of a compensation mechanism for cross-border electricity flows, taking into account the specific characteristics of national and regional markets [7]

4. Risk Preparedness

In accordance with the Risk Preparation Regulation (EU) 2019/941 in the electricity sector, in order to increase the resilience of the European Union electricity system, the European Union countries require the European Union countries to define all possible risky scenarios at the national and regimen level by using common methods and to prepare a "Risk Preparation" plan according to them.[8] In order for each member state to take action against potential electricity crises and to cope with the crisis, it is necessary to prepare "Risk Preparedness" plans, as well as to work in cooperation with neighboring member states by determining the appropriate tools for these plans.

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