Battery storage could deliver over €102m in annual savings for consumers, while reducing emissions and making better use of Ireland's renewable energy resources.
This is according to a study published recently by Energy Storage Ireland, at its annual conference, held in Croke Park, Dublin.
The report, 'Money Saver: How Storage Lowers Energy Costs', prepared by international energy consultancy AFRY, assessed the economic benefits of energy storage in Ireland and Northern Ireland.
Maximum economic benefit
The modelling found that 2GW of six- to eight-hour storage would deliver maximum economic benefit in an early 2030s scenario, where renewable targets have been met. Currently Ireland has just over 1GW of battery storage.
Energy storage reduces electricity system costs by storing renewable electricity when it is abundant and making it available when demand is higher. This reduces reliance on more expensive generation, lowers system costs and helps make better use of the renewable energy already being produced across Ireland.
The report also found that additional storage could reduce wind and solar energy being turned down by 10% and cut power sector emissions by 11%, helping Ireland make greater use of clean, home-grown renewable energy.
Bobby Smith, director of Energy Storage Ireland, said: "The headline finding from this report is clear. Energy storage can deliver more than €100m in annual savings for consumers while helping Ireland make better use of its renewable energy resources.
"By storing electricity when it is plentiful and releasing it when it is needed most, batteries reduce costs across the system, lower emissions and minimise the amount of renewable energy that goes to waste. As Ireland continues to increase renewable generation, energy storage will play an increasingly important role in delivering affordable and secure electricity."
The report also examined how storage performs during periods of elevated energy prices.
In a high gas price scenario, the annual benefits of additional storage increase from €102m to €151m, highlighting the role storage can play in protecting consumers from volatility in international energy markets and future energy price shocks.
Climate minister Darragh O’Brien said: “Energy Storage Ireland and the industry stakeholders they represent play an increasingly vital role in the Irish energy sector, having already delivered more than 800 megawatts of electricity storage systems since 2018. These storage systems accelerate the delivery of a cleaner, more affordable, electricity for Irish consumers.
'Providing flexibility'
"The report published today by Energy Storage Ireland – ‘Money Saver: How Storage Lowers Energy Costs’ – highlights the key role that energy storage plays in providing flexibility, helping to place downward pressure on costs and ultimately contributing to an affordable energy future for generations to come.”
The findings come as Ireland seeks to accelerate the delivery of renewable energy and strengthen energy security while managing growing electricity demand from homes, businesses, transport and industry.
Smith added: "This report provides a clear evidence base for policymakers. The benefits of energy storage are already clear, from lower electricity costs and reduced emissions to better use of Ireland's renewable energy resources.
"The focus now should be on ensuring the right policy and market conditions are in place to support investment in storage and accelerate deployment, and the CRU’s Decision on Interim Transmission Network Charges for Energy Storage Units earlier this month marks a positive step in this regard.
"What we need next is greater certainty on investment frameworks for route to market, the removal of barriers to co-located projects, and an adequately resourced planning system that supports the delivery of our renewable infrastructure commitments. These steps will help maximise the value of Ireland's renewable energy resources and deliver long-term benefits for consumers, businesses and the wider economy."