Dramatic Price Reduction in Solar Energy Storage
Energy storage batteries have become significantly cheaper, with costs falling by over 90% in the past 15 years, according to Nikola Gazdov, a board member of SolarPower Europe and head of the Association for Production, Storage, and Trading of Electricity (APSTE). In an interview with BTA, Gazdov highlighted the importance of installing these batteries and discussed trends in the energy market, including low or negative prices due to increased renewable energy production.
Advancements in Solar Technology and Energy Storage
Gazdov emphasized that the argument about batteries being too expensive is no longer valid. In recent years, Bulgaria and the surrounding region have made substantial progress in developing a regulatory framework to encourage investment in energy storage. This has led to the preparation of the first battery installation projects in Bulgaria. “I expect to see the effects of this very soon,” Gazdov noted.
He explained that energy storage batteries improve system-level balancing and manage variable loads from renewable energy sources (RES). Additionally, these batteries enable investors and plant operators to enhance their business models by storing electricity when market prices are low and selling it when prices rise.
Solar Energy Market Trends in Southeast Europe
All Southeast European countries have rapidly developed renewable energy in recent years. The initial wave of projects has predominantly involved solar plants due to their faster development and construction timelines. Gazdov anticipates many new wind farms joining the grid in Bulgaria, Greece, Romania, Serbia, Hungary, and other countries in the region.
Lower prices on the energy exchange do not pose a problem for solar investors, as they adopt a long-term perspective. The current low and negative prices are attributed to increased solar plant capacities in Bulgaria, Greece, and Romania. For instance, Greece has nearly 7,000 megawatts of installed solar power, while Bulgaria and Romania each have over 3,000 MW. These plants produce electricity simultaneously, leading to low prices during periods of low consumption, especially on weekends and transitional months.
Addressing Energy Market Challenges and Opportunities
Negative prices are not a new phenomenon, and Gazdov hopes this is a temporary issue. He highlighted that long-term contracts for renewable energy purchases are increasingly common, providing predictability and protecting against market volatility. New RES projects in Bulgaria have seen contracts lasting 10 to 12 years, with Bulgarian power plants selling electricity to consumers in Romania and Hungary.
Gazdov believes recent changes to the electricity balancing market, which introduced negative prices, will help address electricity surpluses. These market signals have strongly encouraged investment in batteries.
When asked about challenges connecting new solar plants to the grid, Gazdov explained that Bulgaria’s grid is well-sized, designed to support large industrial production. However, certain areas, such as Southern Bulgaria, have weaker grids due to historical industrial patterns. There is also interest in wind projects in Northeastern Bulgaria, requiring significant grid strengthening.
Gazdov emphasized that while the network needs development in specific regions, it remains robust overall. The Electricity System Operator (ESO) is working to increase grid capacity. He foresees challenges but also opportunities for Bulgaria to leverage its natural assets and strong grid to become a regional leader and exporter of green energy.
In conclusion, the significant reduction in energy storage battery costs and the strategic investments in solar technology and infrastructure are poised to bolster the solar energy market. This aligns with broader energy market trends and green energy policies, ensuring a sustainable and competitive future for renewable energy in Southeast Europe.
Source：bta.bg
