A new report from energy think-tank Ember suggests that the European Union could save EUR 9 billion (USD 10.1 billion) in gas costs by 2030 by rapidly expanding battery storage and cross-border grid connections to harness excess wind and solar generation.
Ember estimates that by 2030, wind and solar power generation may exceed demand across all EU member states by a total of 183 terawatt-hours (TWh), equivalent to about 40% of the EU's total fossil gas generation last year.
Notably, solar energy has already surpassed 80% of demand during peak hours in nine countries over the past year, with the Netherlands and Greece even exceeding 100% at certain times.
The report also highlights an increase in zero and negative energy prices across Europe, alongside widening price spreads, enhancing the business case for battery storage. Beatrice Petrovich, a senior energy and climate analyst at Ember, stated, “It just makes sense to capture all the low-cost renewable power we can. As solar continues to soar, batteries will help ensure that abundant power can be used at all hours. While the EU's renewables scale-up has been rapid and ambitious, the same focus on clean flexibility is still lacking. This needs to be addressed, and quickly, for consumers and businesses to feel the benefits of reducing fossil dependence.”
As of the end of 2023, Germany represents 46% of total EU battery capacity. With 9.5 GW installed by June 2024, Ember predicts that Germany could increase its battery capacity to 11.4 GW by the year's end.
Had this additional capacity been operational during the summer, it would have enabled Germany to shift midday solar energy to evening usage, potentially displacing 36 GWh of fossil power in June alone. Depending on the fuel displaced, this could have resulted in savings of EUR 1.3 million in hard coal costs or EUR 2.5 million in fossil gas costs.
