Solar and renewable energy associations have come forward with concerns about the European Union’s approach to handling solar power potential and the adverse impact of negative prices on renewable projects (Technology Times). In a letter addressed to EU Energy Commissioner Kadri Simson, the associations highlighted the rapid growth of the solar industry in Europe, with a significant increase in installations, reaching 40 gigawatts in 2022, nearly 50% more than the previous year.
The letter reads, “While 2023 will likely deliver another record summer for solar generation, issues with electricity grids, lack of system flexibility, and volatile prices are negatively impacting projects.” The associations, including 16 industry representatives from EU countries, emphasized the urgency of taking action to accelerate solar growth and mitigate energy waste amid the ongoing energy and climate crises.
One of the major concerns raised by the industry is the curtailment of solar power during periods of low demand, with coal power production taking precedence. Countries like Poland and the Czech Republic have witnessed solar power production being shut down due to unexpected lower demand while coal power plants continue to operate, leading to wastage of clean, low-cost solar energy. The associations urge for more flexible grid systems and a shift away from heavy reliance on coal.
Another issue highlighted by the industry is the volatility of energy prices, including frequent instances of negative prices, which pose a threat to investments in new solar assets. The associations predict that higher price volatility will become the norm, leading to increased uncertainty and potential revenue losses for renewable energy projects.
To address these concerns, the associations call on EU countries to improve grid preparedness and accelerate the permitting and construction of grid infrastructure to accommodate the growing share of renewables. They stress the importance of introducing flexibility across the electricity system, from adaptive grids to responsive home energy consumption. Additionally, the need for increased storage capacity and incentives for electricity usage during low-demand periods, such as overnight, is emphasized.
Regulatory bottlenecks and double charges in hybrid projects combining solar power production with storage or other sources like wind power need to be addressed, according to the associations. To provide stability and long-term investment signals, the industry advocates for the use of contracts for difference, which guarantee revenue for renewable projects. This approach was proposed by the European Commission as part of the electricity market reform in March 2023.
In conclusion, the solar and renewable energy associations urge the European Union to act swiftly in addressing curtailment, grid preparedness, price volatility, and regulatory barriers to foster stable and sustainable growth in the solar energy sector.
Other ways to resolve the issue of wasting green energy:
Resolving wasted green energy involves implementing various strategies and adopting technologies to enhance the efficiency and utilization of renewable energy sources.
Here are some ways to address wasted green energy:
- Energy Storage Systems: Deploy energy storage technologies like batteries, pumped hydro, or thermal storage to store excess energy during periods of high production and release it during periods of high demand or low generation. This helps balance supply and demand and avoids wastage.
- Smart Grids and Demand Response: Develop smart grid systems that enable better communication between energy producers, consumers, and grid operators. Implement demand response programs that incentivize consumers to adjust their energy consumption during peak and off-peak times, reducing energy waste.
- Grid Upgrades and Expansion: Invest in grid infrastructure upgrades and expansion to accommodate higher shares of renewable energy sources. This includes strengthening transmission lines, adding new interconnections, and integrating distributed energy resources effectively.
- Curtailment Management: Implement strategies to minimize curtailment of renewable energy generation during times of low demand. This can involve better forecasting, improved grid management, and the integration of demand-side resources.
- Grid-Connected Storage Solutions: Encourage the deployment of grid-connected energy storage systems at both utility and consumer levels. These systems can store surplus energy and release it back into the grid when needed, reducing waste.
- Power-to-X Technologies: Utilize power-to-X technologies, such as power-to-hydrogen or power-to-heat, to convert excess renewable energy into other forms that can be stored or utilized in various sectors like transportation or industry.
- Sector Coupling: Integrate renewable energy systems with other sectors like heating, cooling, and transportation. For instance, use excess electricity to power electric vehicles or provide heating in buildings.
- Energy Efficiency: Improve energy efficiency in all sectors to reduce overall energy demand, making better use of available renewable energy.
- Regulatory Reforms: Implement supportive policies and regulations that encourage the development and deployment of renewable energy and energy storage technologies. This includes feed-in tariffs, tax incentives, and removing barriers to grid connection.
- Public Awareness and Education: Educate the public about the benefits of renewable energy and the importance of energy conservation, encouraging individuals and businesses to make sustainable energy choices.
By employing these strategies and fostering collaboration between policymakers, energy providers, and consumers, wasted green energy can be significantly reduced, paving the way for a more sustainable and efficient energy future.
Whilst we are on the topic, if you are interested in going solar then here is the article for you – https://www.energybrokers.co.uk/news/domestic/are-you-suitable-for-solar