Home batteries primarily play a role in energy balancing rather than net congestion. However, there is currently no profitable business case for energy balancing, a new report by CE Delft concludes. The researchers propose various measures to improve profitability. The study also highlights the need for new policies and reforms to fully leverage the potential of home batteries in the energy transition.
The report, commissioned by Huawei, offers a comprehensive analysis of the role of home batteries in the energy transition, highlighting their potential, challenges, and policy implications. The study, titled “Thuisbatterijen in de energietransitie” (Home Batteries in the Energy Transition), is a 101-page deep dive into the world of home batteries, examining their roles in energy balancing and net congestion management, the business case for their adoption, and the policy landscape surrounding them.
Home Batteries: Roles and Potential
The study identifies two central roles for home batteries in the energy system. Firstly, they contribute to energy balancing by enhancing the reliability of the energy system, aiding in CO2 reduction, and preventing curtailment. Secondly, home batteries can be crucial in managing net congestion by lowering peak loads, potentially delaying or avoiding the need for grid reinforcement.
The Business Case for Home Batteries
The business case for home batteries is complex. They can operate in energy markets to balance the national electricity system and generate revenue. However, the study models the payback period for small and large home batteries under various 2030 scenarios, finding a minimum payback period of fifteen years, heavily dependent on energy price developments. The study notes that the abolition of the net metering scheme does not contribute to the profitability of home batteries, as it leads to higher energy tax and VAT payments when trading energy.
Home Batteries and Net Congestion
The report finds that home batteries can either solve congestion by lowering peak loads, contribute to congestion by increasing peaks when participating in energy markets, or act congestion-neutral by not increasing peaks. With current policies, home batteries tend to increase peak loads, necessitating additional policies like tariff reform and direct control by network operators to mitigate this effect.
Policy Recommendations and Subsidies
The study provides several policy recommendations for home batteries, including setting standards for fire safety, establishing collection and recycling infrastructure, and legal requirements for cybersecurity. It also suggests that abolishing the net metering scheme and double energy taxation could improve the business case for home batteries. Given the long payback period, the report considers subsidies as a potential policy measure, suggesting a subsidy rate of about 40% to 55% of the purchase price to achieve a fifteen-year payback period.
Energy future
More and more households are contributing to the energy transition with solar panels, a sustainable heat supply and electric cars. A home battery makes it possible to store electricity for later use. This makes the electricity grid more stable and ensures a more sustainable energy system. Households with solar panels and a home battery increase the proportion of self-generated energy. Home batteries can, therefore, contribute to the energy transition. But to ensure a breakthrough, however, an adapted energy policy is needed.
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