The role of storage in making the energy transition happen

In my role, I am responsible for the design, installation, and delivery of battery systems. Previously, I worked as a naval engineer aboard ships in the cruise, merchant, and offshore industries. Battery storage has been increasingly used in this sector for years. iwell’s mission is to build the energy system of the future. We are experts in the field of battery technology, develop our own software, for example for controlling batteries, and work as a systems integrator.

Evidently, the Netherlands is facing a major challenge in when it comes to grid congestion, also referred to as the ‘traffic jam’ on the energy grid. Grid congestion poses a major challenge to the energy transition and even economic growth. There is simply not enough capacity to connect everyone, and at the same time there is the need to connect more and more renewable energy sources. A buffer is useful for aligning energy demand and production. With a battery, you can store energy surpluses and supply this power in the event of shortages, at different levels: from business parks and industrial installations to residential areas. Storage systems can respond quickly to fluctuations in electricity supply and demand, improving the stability and reliability of the power grid. Storage systems can be used to cope with peak loads, reducing the need for grid infrastructure expansion and saving costs. If a business is looking to expand, storage can be of help while they wait for a larger connection. Today, storage mainly acts to support the grid, and solve bottlenecks. Meanwhile, at iwell, we are building smart energy systems; By adding intelligence to battery systems, we take on the role of energy flow ‘conductor’ at our customers.

Insufficient grid capacity

By introducing batteries, the use of renewable sources becomes easier, as you don’t have to connect directly to the grid. We believe that both energy demand and production will continue to rise, so storage will remain part of the solution for a longer period of time – even once the grids are reinforced. Battery systems act as a buffer between energy generation, uptake, and consumption, allowing clean energy to be used more efficiently. The smart battery system ensures you can also place solar panels in a congestion area, storing generated energy instead of feeding it back. In this way you can become (almost) independent of the limited energy grid while still growing your business sustainably.

Clean, affordable energy for all: one of the great challenges of our time

Fortunately, this topic is already receiving some attention. Reduction of grid usage ‘transmission tariffs’ for battery systems is also being discussed. This would help make all kinds of interesting business cases possible. In essence, a battery is now seen as an ‘ordinary’ grid user, in which you store energy, and therefore also pay a transport tariff. But of course, a battery does much more: it returns energy to the grid, contributing to grid stability and making it possible to connect more solar and wind energy. I think governments should support that. The Dutch government wants to become more sustainable, and storage is one of the things you can tweak to realize this. Renewable energy sources such as solar and wind offer variable yields and are dependent on weather conditions. Energy storage can accommodate the fluctuations in energy production by storing excess energy when production is high and releasing it when demand exceeds production.

In the end, it’s all about a combination of factors: in addition to storage, it is necessary to look at improving energy efficiency in buildings, industries, and transport, developing and expanding smart electricity grids, as well as new policies and regulations. Aligning and optimizing all these elements is essential for achieving the energy transition.