The Regulation of Energy Storage Across the Vectors: Maximizing Flexibility

In this Debate, we aim at identifying some fundamentals for realising a coherent regulatory  framework for energy storage facilities across the energy vectors with a focus on achieving the optimumal  flexibility from storage facilities.

Storage for all forms of energy vectors is of key importance for achieving the EU’s climate and energy targets. Storage has a crucial role in achieving security of supply, reliability and flexibility. These goals cannot always be pursued simultaneously however and some forms of storage may be more suited to serving some goals than others.

In the FSR Debate, we ask whether we are considering all the options as to how to accommodate storage in the new regulatory frameworks under consideration, and in particular to maximise the  demand and supply flexibility that different forms of storage can offer. 

If the objective is to strive for flexibility maximisation,  how should we position energy storage within the regulatory framework? Is storage to be positioned as part of the transmission or distribution network? Is it a back up for flexible supply or is it an independent service?  Who should offer different types of storage-related services and who should not?  Should we revisit the unbundling rules? How should injection into storage and withdrawal from storage be charged in order not to distort the efficient use of resources in the overall energy system?

In all these aspects we will consider whether and how to align gas and electricity regulatory principles and practice. Do we follow the existing rules on electricity or on gas or do we develop a new, harmonised approach across the sectors.

As to network tariff methodologies for gas storage – are these likely to be a barrier to innovative flexibility services or should we seek to maintain guarantees for fair access?  Do we have to mirror this approach for other forms of storage such as batteries?

This in turn raises the issue of whether the current approach to fuel specific network codes, guidelines – one distinct set for gas – one set for electricity needs to revamped?

Programme

Introduction to the Debate and Opening Presentations

14.00 – 14.05  Introduction to the Debate

Leigh Hancher| Florence School of Regulation

14.05 – 14.15 An energy system needs storage. Storage is everywhere

Ronnie Belmans  | CEO Energyville

14.15 – 14.25  The role of gas storage – time for a regulatory upgrade?

 Carole le Hénaff  | GIE/Storengy

Panel Discussion: Introductory Remarks, Polls, and Comments

Moderator:  Alberto Pototschnig | Florence School of Regulation

14.25 – 14.45   Introductory remarks from the panellists

Guido Cervigni | DFC Economic

Doug Wood | EFET

Benoit  Esnault | ACER/CRE

14.45 – 14.50   Polls

14.50 – 15.20   Comments on the outcome of the polls and Q&A from the audience                    

15.20 – 15.30   Concluding remarks

Alberto Pototschnig | Florence School of Regulation

Leigh Hancher | Florence School of Regulation and Tilburg University

#FSRDebates

The focus of the debate series is on recent court cases, regulatory decisions, EU legislation, or public consultations to be discussed by a panel of experts.

Hosts: Prof. Leigh Hancher and Prof. Alberto Pototschnig