Interview with André Flach (SGP) on the role of energy storage in energy transition
The Lower House elections are just around the corner, and Energy Storage NL is curious to see how energy storage is included in the party programs of various political parties. In the run-up to the elections, Energy Storage NL is focusing on 'energy storage in politics'. For this campaign, we interviewed several members of parliament about what they think is the importance of energy storage in the energy system. This time speaking: André Flach, Member of Parliament on behalf of the SGP.
What do you think is the main added value of energy storage in the Dutch energy system, both in the short and long term?
The SGP is committed to more energy storage, including as a strategic priority. More energy storage is crucial for a future-proof energy system that is both sustainable, affordable and reliable. Electricity production and electrification of the energy system is increasing. With the sharp increase in wind farms and solar panels, electricity production is also going to fluctuate much more. You need storage technically and economically to keep the grid in balance, to use the electricity grid optimally and to avoid unworkable price spikes and demand outages. You need storage more strategically to use as much green power as possible yourself and to make the energy system sufficiently flexible and less vulnerable.
How do you view the role of energy storage as a structural solution to grid congestion? Do you think the potential of storage for this is already being sufficiently exploited?
Energy storage in the right places in the grid can make a substantial contribution to solving congestion bottlenecks. I am thinking, for example, of business parks where companies can make do with a much smaller connection if they work on joint energy management, including a battery. That is not easy, but we will have to move in that direction. This potential is not yet being sufficiently exploited.
The share of storage in the energy system is still very small at present. According to your party, what is the biggest reason why energy storage has not taken off sufficiently in the Netherlands so far?
I think the underlying reason is that energy storage in the power grid is an oddity. We find it legally tricky, for example. Is it an energy user or not? We want more energy storage because of its positive role in the energy system, but because we designate it as an energy user we make batteries pay grid charges and energy taxes. That doesn't help, of course. But it's also tricky in terms of system and market design. We come from an era of centralized and stable electricity production where strategic choices were left mainly to the market. The energy transition requires more system thinking and strategic choices from the government. Energy storage will not happen by itself.
The sector lacks direction and direction from the government. Do you think the commitment to storage should be much more prioritized, and if so, how do you envision it (e.g., a national program or sector agreement for storage)?
Yes, I agree. Energy storage cycles between everything. Between layers of government, ministries and sectors. So you need broad commitment. A national program can certainly help, but we already have quite a lot of paper. I think above all you also need an oil man who keeps everyone on their toes.
For example, we do not yet know how much storage is needed where. Should policies, e.g. the National Energy System Plan, therefore include a target for storage, for example?
Such a storage target can help keep everyone on track. So I do support this.
A profitable business case is often lacking, due in part to current transportation tariffs. Do you think the government should actively intervene here or do you see other ways to encourage storage from the government?
As SGP, we believe that no transportation charges should be made for electrolyzers and batteries at those points in the energy grid where they are needed to keep the grid in balance. The current time-based transmission charge with a discount of 65% is of limited application and insufficient for a good business case. Minister Hermans hid behind announced European guidelines. But, in Belgium and Germany there are already exemptions, so within the current EU rules. I think the Netherlands should also take that step. Furthermore, we as the SGP want to get rid of the double energy tax.
Subsidizing storage on a large scale is not possible now, for example, storage is not included in the SDE++. How do you look at that?
I think we should especially improve the business case for energy storage on the front end. So charge much less or no transport costs and no double energy taxes. Then you have to see what support is needed to get things moving.
The incorporation of storage locally is still very difficult. Should the national government take much more control of this by, for example, regulating land positions and permits for storage?
I think it starts with more sense of urgency on the part of the national government and a clear vision and strategy for energy storage rollout. Then you can include provinces and municipalities much better, for example, through administrative agreements. Energy storage is also important regionally and locally to address grid congestion.
How do we ensure that citizens also benefit from energy storage? For example, how do you look at encouraging or facilitating neighborhood or home batteries or decentralized heat storage?
I think we can quickly overestimate the importance of home batteries and not the importance of thermal storage. Home batteries may become interesting for consumers, but if it is not the most optimal choice for the energy system, that will be reflected in the grid tariffs. Heat storage is a win win. It unburdens the power grid and makes heat grids more affordable and less vulnerable.
Leading up to the election, what can we expect from your party in terms of energy storage - will this be a key issue in your climate and energy agenda?
As SGP, we insist on the importance of strengthening and making the energy grid more robust. Politicians have put a lot of effort into making energy supplies more sustainable, but have forgotten about the energy system. Grid congestion is now the bottleneck to sustainability for many companies. As SGP, we are therefore motivated to push for more energy storage, through batteries and thermal storage. An important step is the elimination of grid tariffs and the double energy tax.
