Israel Poised for Global Leadership in Electricity Storage Despite Coordination Hurdles
Translated & summarized from Calcalist by baba
Israel is set to lead the world in electricity storage capacity per capita by 2030, but faces challenges due to a lack of national targets and poor coordination. The Ministry of Energy is releasing a report to create a binding framework for regulators. The growth is driven by investment, falling battery prices, and the need to manage solar energy's intermittent nature. New market mechanisms are expected to further boost the sector.
The story in 5 lines · by baba
- Israel is projected to lead the world in electricity storage capacity per capita by 2030.
- The country lacks national targets and faces coordination issues hindering technology adoption.
- Falling battery prices and the need to manage solar energy's intermittency drive growth.
- New wholesale electricity market mechanisms are expected to create arbitrage opportunities.
- Regulatory hurdles, especially from fire services, complicate battery installations.
Israel is projected to become a world leader in electricity storage capacity per capita by 2030, with an estimated 900 megawatts per million people, surpassing Australia and the United Kingdom. However, the country currently lacks a national target for energy storage and suffers from poor coordination, hindering the technology's adoption. To address this, the Ministry of Energy is preparing to release a comprehensive report with policy recommendations and a binding framework for all regulators.
The surge in energy storage is fueled by significant capital investment, a steep decline in battery prices since 2008, and a critical national need. Israel's heavy reliance on solar power, which peaks at midday when demand is low, necessitates storage to bridge the gap when solar production wanes in the evening and demand rises, thus reducing the need for polluting gas power plants. Without storage, excess solar energy might go unused during peak production hours.
Experts highlight that the successful implementation of storage projects depends on grid capacity. While storage facilities can optimize grid utilization, challenges remain in supplying power to storage units that rely on the existing electricity grid. Storage solutions vary, including batteries integrated with solar farms and power plants for continuous supply, high-voltage storage for better grid management, and low-voltage systems in buildings for cost reduction and backup power.
Despite progress, the Ministry of Energy's report identifies a lack of coordination and national targets as primary issues. Setting targets is crucial for both aspiration and control, as excessive storage can lead to diminishing marginal benefits. Regulatory hurdles, particularly from the Fire and Rescue Services regarding strict safety standards for lithium-ion batteries, also pose challenges, especially for underground installations.
Looking ahead, the introduction of a new wholesale electricity market mechanism (MCP) in January is expected to create opportunities for energy storage developers through price arbitrage. The Ministry is also exploring long-term storage solutions beyond daily cycles, such as pumped hydro storage and emerging technologies like iron batteries or hydrogen fuel cells, though these are not yet economically viable.
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