MEPs debate with the Commission the energy situation in the EU and preparations to refill gas reserves ahead of next winter. Opening statement by Kadri SIMSON, European Commissioner for Energy. This transcription is a result of an automatic process. Please check against delivery.

statement

Strasbourg

debate

plenary session

energy union (T)

Energy (T2)

SIMSON, Kadri (EE, EC)

Energy storage: opening statement by Kadri SIMSON, European Commissioner for Energy

SOUNDBITE (English), Kadri SIMSON, European Commissioner for Energy, Honourable members, thank you for organising this timely and necessary debate on the role of energy storage in that electricity system. We have a lot of topics on our agenda, but storage is the centrepiece for building a decarbonised, flexible and cost effective energy system through electrification and energy system integration and is key for achieving our reporting targets. With regards to enewables and hydrogen production.

SOUNDBITE (English), Kadri SIMSON, European Commissioner for Energy, But the fact is that the role of storage is often overlooked. I want to give credit to this Parliament for adopting. Already in July 2020 an own report calling for a comprehensive European approach to storage. The gamer report brought the storage issue in Focus and set in motion a systematic work by the Commission.

SOUNDBITE (English), Kadri SIMSON, European Commissioner for Energy, We examined the relevant technologies, the barriers to their deployment to market, the gaps and the regulatory framework. We looked into the best ways in which we could build on that. Work started in 2016 with our guiding documents and provisions in the Clean Edge package. Today, I am delighted to present you the results of this work and the latest set of Commission proposals on energy storage.

SOUNDBITE (English), Kadri SIMSON, European Commissioner for Energy, Honourable Members. Just one month ago the Commission adopted a target proposal for the reform of electricity market design, which has at its core, key provisions to boost advanced storage and flexibility technologies. The reform of the electricity market design strengthens flexibility services, demand response and energy storage in the electricity system. This measures for Member States and system operators.

SOUNDBITE (English), Kadri SIMSON, European Commissioner for Energy, For Member States, they would be required to assess the flexibility needs in the national energy systems for a period of at least five years. The move away from system flexibility is gained from fossil fuel. They would have to establish indicative national objectives, focusing especially non-fossil flexibility technologies such as storage and demand response. And they would have the option of introducing new support schemes, especially for non-fossil flexibility such as demand response and storage, or when they exist to integrate them into capacity mechanisms.

SOUNDBITE (English), Kadri SIMSON, European Commissioner for Energy, For system operators, they would be able to procure flexibility services at peak hours. They would also use the data from dedicated metering devices to facilitate the active participation of demand response and storage and electricity markets. Flexibility service providers would see an evolution in the remuneration of their services through network tariffs. This would incentivise system operators to further develop innovative solutions to optimise existing grids and procure flexibility services, in particular demand response.

SOUNDBITE (English), Kadri SIMSON, European Commissioner for Energy, These regulatory provisions will go a long way to boost incentives for storage, but we did not stop there. In parallel to the revision of the electricity market design, we addressed a commission recommendation on nature storage, the Member States, because we know that a great part of the work falls on the national level.

SOUNDBITE (English), Kadri SIMSON, European Commissioner for Energy, And to support this, we published a Stop Working document. If a solid and comprehensive strategic study of the options for electricity storage and the ways to promote them taking a technology neutral approach. The recommendations offer proposals for Member States actions towards a greater deployment of energy storage. To provide benefits to consumers and to accelerate the market for flexibility solutions.

SOUNDBITE (English), Kadri SIMSON, European Commissioner for Energy, Finally, let me come to the last piece of the puzzle. On 9th March 2023, the Commission officially requested that the EU DSO entity, start work on a new network code. This will further support the development of demand response, including rules on aggregation and storage and demand containment and address remaining regulatory barriers. And it will be an important step towards the use of flexibility services, in particular by system operators.

SOUNDBITE (English), Kadri SIMSON, European Commissioner for Energy, Honourable Members of the Parliament, we know that storage is central for the success of our clean energy transition. We know that the time to act is now, but with our latest initiatives we set the ball rolling. We aim to shape it and to save environment for storage and flexibility solutions to develop at the pace and scale we need. But I need your support to get there. I look forward to hearing your views and having a fruitful exchange on how to do that. Thank you.