Regulation of Energy Storage Systems in the DACH Countries

Abstract

In the mid – to long-term, energy storage systems may be necessary to balance the stochastic electricity production of renewable energies such as wind and solar. Many different storage solutions are either already technologically mature or on the brink of market introduction. However, regulatory barriers may hinder investments in storage capacity. Energy law in European countries typically defines very specific roles for different market participants, such as producers, grid operators or final customers. Storage systems often do not fit into these categories, or may simultaneously fall under several different rule sets. This raises many legal questions which have yet to be addressed by the courts. Especially problematic is the question of whether storage systems have to pay grid usage fees, which is closely related to their possible classification as final customers and may restrict many potential business models. This article compares the corresponding regulation in the main German-speaking (DACH) countries; Germany, Austria and Switzerland while also taking into account relevant EU legislation. Energy Storage, Renewable Energy, Grid Tariffs, Final Customer, Electricity Internal Market Directive, Unbundling

A New Dawn for Energy Storage: An Interdisciplinary Legal and Technoeconomic Analysis of the New EU Legal Framework

“…In Germany and Switzerland, it was decided in the last decade that only the electricity produced from renewable sources, stored by PHES and injected into the grid (i.e. after conversion losses) benefits from the renewables' support scheme (Schreiber, 2020). Alternatively, network charges could be imposed on energy losses, to incentivise the deployment of the most efficient storage technologies.…”

“…Despite this promising outlook, the lack of an enabling legal framework was identified as a prime barrier to energy storage investment and innovation (Parag and Sovacool, 2016;Castagneto Gissey et al, 2018;Gährs and Knoefel, 2020;Schmitt and Sanford, 2018;Crossley, 2013;Schreiber, 2020;Stephan et al, 2016). In Europe, the 2009 Electricity Directive (hereinafter 2009 E-Directive) hindered energy storage finance and investment decisions (Directive, 2009).…”

“…In Europe, the 2009 Electricity Directive (hereinafter 2009 E-Directive) hindered energy storage finance and investment decisions (Directive, 2009). First, storage was not defined and some European (EU) countries, like Italy, adopted their own definition while others, like Germany, simply ignored energy storage (Schreiber, 2020;Kreeft and Mauger, 2021;Kreeft, 2018). Secondly, industry competition was challenged by the lack of a harmonised set of legal frameworks among various EU countries (Penttinen et al, 2020).…”