1. The Role of Energy Storage in Supporting the Energy Transition 23 June 2016 Energy Infrastructure Forum Copenhagen, Denmark Thierry Le Boucher EASE Vice-President Executive Vice President Sales & Marketing, Renewable Energy, Energy Management and Networks at EDF R&D

2. Energy Storage: Clear Cost-Benefit Example Estimated cost reductions in the UK electricity system 2 Strategic Assessment of the Role and Value of Energy Storage Systems in the UK Low Carbon Energy Future, report for the carbon trust, 2012 Energy storage is a multi-benefit, multi-stakeholder opportunity which requires coordinated action by policy makers, regulators, and industry to capture its full value. In this case, Energy Storage could save up to £2 billion per year in 2030 in the UK. Benefits stem from savings in the reduction of renewable curtailment, avoided generation CAPEXes and distribution deferral. Cost-benefit analyses of storage in a high RES 2030 UK Storage cost 4 hypotheses for competing flexibilities

3. Energy Storage: Which Needs? A survey of some existing studies 3 Storage demand of EU member countries in GW and GWh (bubble size) as a function of the share of wind & solar generation, as described in various published studies (compilation of data by EASE, 2015) The value/ flexibility benefits of storage for each country can vary significantly according to power system characteristics and storage costs Some key factors: Deployment of other flexibility levers (interconnections, flexible conventional generation, demand response) Share of wind & solar Storage costs

4. Energy Storage: A Source of Needed System Flexibility 4 Energy Infrastructure Forum – 2016.06.23 For DSOs, Energy Storage: Provides incremental capacity to address grid congestion (i.e. peak shifting), allowing investment deferral Can allow an increased deployment of variable renewable energy sources Improves power quality issues, e.g. in rural areas where PV feed-in affects voltage level For Utilities and TSOs, Energy Storage: Provides incremental capacity, allowing investment deferral Allows optimising the dispatch (peak shaving, curtailment minimisation) Provides fast and accurate reserves for balancing power generation, and synchronous/synthetic inertia For ‘prosumers’, Energy Storage: Can enable (deferred and optimised) self-consumption Provides back up capacity (enhanced resilience)

5. 1.Establish a definition of electricity ES in the EU regulatory framework 2.Define a separate asset category and rules for ES systems. ES should be recognised as the 4 th element of the energy system (alongside Generation, Distribution/Transmission and Consumption) 3.Eliminate technical barriers & over specifications not justified by CBA against ES in the electricity network codes 4.Eliminate unwarranted fees and taxes (e.g., double-taxing for the charging and discharging of ES) 5.Allow RES to be fully integrated into the market with a well-functioning CO 2 market as the main decarbonisation tool 6.Ensure that the procurement of all energy and ancillary services is market-based and that ES can compete on an equal basis with other providers 7.Ensure well-designed and properly functioning capacity markets, including eligibility for ES 8.Consider the interest of “pay-for-performance” schemes, which value the properties provided by fast-reacting resources in ancillary service markets 9.Permit long-term contracts for ES (e.g. for black start capacity, frequency control, capacity payments, etc.) Energy Storage Policy Objectives Recommendations to strengthen the Energy Storage business case 5 Energy Infrastructure Forum – 2016.06.23

6. Thank you for your attention 6 Secretary General: Patrick Clerens p.clerens@ease-storage.eu EASE – European Association for Storage of Energy Avenue Adolphe Lacomblé 59/8 | BE - 1030 Brussels +32 2 743 29 82 @EASE_ES info@ease-storage.eu www.ease-storage.eu Energy Infrastructure Forum – 2016.06.23