The Revision of the Renewable Energy Directive: An Opportunity to Increase the EU’s Renewables Ambitions and Accelerate Energy Storage Deployment

EASE has provided its reply to the European Commission’s public consultation on the revision of the Renewable Energy Directive.

The revision of the recast Renewable Energy Directive (RED II) is essential in order to achieve the target of at least 55% greenhouse gas emissions reduction compared to 1990 levels. The next Directive, RED III, must have more ambitious targets to accelerate the energy transition and align with the European Green Deal.

We believe that it is important to set challenging short-term as well as long-term targets in order to clearly signal the EU’s commitment to addressing the climate challenge. The overall renewable energy target for 2030 should be increased, and it should be mandatory both at EU and national level. In addition, EASE supports increased targets for renewable energy in transport for 2030.

More ambitious targets can only be achieved with forward-looking and ambitious policy. The revision of RED II presents a valuable opportunity to address barriers to the deployment of energy storage technologies. Energy storage is an essential enabler of a renewables-based system, without which it is impossible to maintain security of supply and efficient energy system operation.

Policymakers should consider measures to support deployment of storage technologies, since:

• Energy storage technologies contribute to increasing the share of renewable electricity used in the energy mix by reducing or avoiding curtailment of renewable electricity generation. By shifting the use of excess renewable electricity forward in time to periods of deficit, RES essentially become dispatchable, which greatly facilitates their integration into the energy system, and ensures optimal use of installed RES capacities.
• When optimally located, energy storage solutions can enhance the optimal use of the transmission and distribution grid, avoiding congestions.
• Energy storage can help decarbonise the heating and cooling sectors, which are currently heavily dependent on fossil fuels.
• Finally, some of these technologies, for example Power-to-Gas and Power-to-Liquid, can be used to produce renewable fuels (e.g. synthetic methane, methanol) or chemicals (e.g. ammonia).

Barriers to the deployment of energy storage solutions, including hybrid renewables + storage projects, should therefore be systematically addressed. RED III should focus also on supporting the roll-out of thermal energy storage, both small-scale and large-scale solutions, as well as power-to-x and decarbonisation of transport. This is highly important to ensure that RED III is aligned with the EU’s energy system integration strategy, which should allow all relevant technologies to compete on a more equal playing field, also across energy carriers.

The RED II contains several aspects related to energy efficiency, which is highly important. EASE would like to also like to see policymakers prioritise energy optimisation. This means having a more flexible energy supply and demand at all levels of the system, including behind-the-meter for residential or commercial & industrial consumers, to optimise the use of energy via flexibility sources such as energy storage.

EASE members are fully supportive of the EU Green Deal and see the revision of RED II as an important step in the right direction. A clear, predictable and transparent investment framework with long term market signals is an essential prerequisite to further exploit the potential of RES and energy storage. We hope that RED III will fully recognise the essential role of energy storage and help build a robust regulatory and policy framework to support all types of energy storage technologies.