Unlocking Hidden Value: The Need for Balancing Markets in Eastern Europe’s Energy Sector
The energy market requires improvement, particularly in providing payment for auxiliary services like balancing energy. Hirschl highlighted the case of a solar-plus-storage company in Germany, which stored energy during high supply but was charged for transferring it back to the grid. This situation illustrates the need for better awareness and understanding among energy sector participants.
Andres Meesak from Viru Elektrivõrgud noted that the grid will become more complex. He expects a shift from large-scale energy solutions to a market focused on prosumers and battery energy storage systems (BESS) in Eastern Europe. Meesak emphasized that solar generation is more favorable against consumption. Thus, Estonia is likely to see more prosumers rather than large-scale energy investments.
Meesak pointed out the operational lifespan difference between grid infrastructure and renewable technologies. Simply increasing grid capacity won’t solve long-term connection issues since grids are built for 50 to 60 years, while photovoltaic (PV) installations last only about 25 to 30 years. To address this, he advocated revitalizing existing grid assets to support new energy sources like storage, PV, and electric vehicle charging.
Grid capacity remains a top priority in Eastern Europe. Concerns about capacity limit many companies’ operations. Experts agree that deploying more storage systems will benefit the energy market. Rolands Irklis of JSC Augstsprieguma Tīkls suggested that adding BESS to solar projects can increase flexibility and value.
What role do prosumers play in the future of energy in Eastern Europe?
Interview with Energy Market Specialist Andres Meesak on the Future of Energy in Eastern Europe
News Directory 3: Thank you for joining us, Andres. The energy market is undergoing significant changes, especially regarding payment for auxiliary services. Can you elaborate on the importance of this issue?
Andres Meesak: Thank you for having me. Yes, the need for improved compensation for auxiliary services, such as balancing energy, is crucial. I often refer to a case in Germany, where a solar-plus-storage company faced charges for transferring stored energy back to the grid, despite the system’s role in balancing supply and demand. This kind of situation underscores the need for a better understanding and awareness among all players in the energy sector.
News Directory 3: You mentioned a shift towards prosumers and battery energy storage systems (BESS) in Eastern Europe. What changes do you foresee in this region?
Andres Meesak: Eastern Europe’s energy landscape is evolving. I anticipate a significant shift from large-scale energy solutions to a market model that centers more on prosumers—individuals or entities that both produce and consume energy—and BESS. Solar generation is increasingly advantageous compared to traditional consumption models. Therefore, I expect a rise in prosumer models rather than further large-scale energy investments.
News Directory 3: That raises a critical point about infrastructure longevity. Can you explain the implications of the differing lifespans between grid infrastructure and renewable technologies?
Andres Meesak: Absolutely. The lifespan of grid infrastructure typically ranges from 50 to 60 years, while photovoltaic (PV) installations often last only about 25 to 30 years. Merely increasing grid capacity won’t resolve long-term connection issues because we need to think about how these different technologies integrate over time. Revitalizing existing grid assets to accommodate new energy sources, such as storage, PV, and electric vehicle charging, is essential.
News Directory 3: What are the current priorities for grid development in Eastern Europe, and how do they impact companies operating in the region?
Andres Meesak: Grid capacity is a major concern for many companies in Eastern Europe. Limitations in capacity greatly impact operations and growth potential. Experts, including myself, believe that deploying more storage systems can enhance the energy market’s flexibility and effectiveness.
News Directory 3: Noteworthy insights indeed! Earlier, Rolands Irklis suggested integrating BESS into solar projects for increasing flexibility. Do you agree with this sentiment?
Andres Meesak: I completely agree. Incorporating BESS into solar installations not only adds flexibility but also enhances their overall value. It creates a more dynamic energy market and ensures that the energy produced is used efficiently and effectively.
News Directory 3: Catailn Chimirel discussed the importance of financial incentives for storage project developments. How essential are these incentives for advancing energy infrastructure?
Andres Meesak: Financial incentives are vital. They encourage developers to construct essential storage facilities, which are necessary for a balanced energy ecosystem. As Chimirel aptly put it, “Batteries are always welcome.” Providing support to developers is essential to drive infrastructure improvements.
News Directory 3: Lastly, could you tell us about the upcoming event in Warsaw and its significance for the industry?
Andres Meesak: The fourth edition of Large Scale Solar Central and Eastern Europe will take place in Warsaw on November 26-27, 2024. It’s a crucial gathering for industry leaders to discuss solar and storage project developments across Eastern European countries. This event provides a platform for collaboration and innovation, and I encourage all stakeholders in the energy sector to participate.
News Directory 3: Thank you, Andres, for your valuable insights on the evolving energy market in Eastern Europe. We look forward to seeing the positive changes ahead.
Andres Meesak: Thank you for having me. It’s an exciting time for our industry!
Catailn Chimirel from CNTEE Transelectrica SA reinforced the call for storage projects alongside financial incentives for developers. This support will encourage the construction of essential storage facilities. Chimirel stated, “Batteries are always welcome.”
The fourth edition of Large Scale Solar Central and Eastern Europe will take place in Warsaw, Poland, on November 26-27, 2024. The event will gather industry leaders to discuss solar and storage project developments in various Eastern European countries. For more information, visit the event website.