Energy Storage and the New EC State Aid Rules: Oops!

The new state aid rules require that electricity over 500 kW be sold to the grid. See 3.3.2.1.par. 125. This, of course, is designed to frustrate distributed energy, which is emerging as the development that will change the whole utility industry.

But in the fine print, the new Guidelines also seriously impede energy storage. Electricity coming from energy storage that was renewable going into storage is no longer renewable coming out of storage. Definitions 1.3(19)(11). No operating support is possible if the guidelines are followed. This means that the RES producer must own his storage device to get any credit for the energy he produces and stores.

Operators owning storage devices (charged by third-parties) will not have any green support apparently since what they sell coming out of storage does not qualify for support under the guidelines.

But there is another catch, the guidelines also require that the electricity be sold to the grid to receive operating support, except for small sources. So electricity from larger sources will not be able to get support for what they store.

I am still figuring out if there is something devious at work here or whether it was just a screw-up.



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