Julien Jomaux Profile picture
Jun 5, 2023 10 tweets 4 min read Read on X
Will large-scale #batteries store the energy when it is cheap and sell it back when expensive? My short answer is no.
A short thread. (1/10) Image
Volatility is on the rise with renewables, especially solar. Just check what happened last week in Europe. Very low and negative prices all other Europe for lunch. (2/10) Image
Solar was clearly one of the main factors. The residual load in Germany getting close to zero (negative in the Netherlands). (3/10) Image
So, we are at the age of the canyon curve... (4/10) Image
Should we install large-scale batteries to store excess energy and gives it back during the evening?
No, it is far from making economic sense today (happy to discuss assumptions). Basically, one spread per day is not enough to justify investing in large-scale batteries. (5/10) Image
I am not the only one to say that, I believe. @iain_staffell (6/10) Image
Or check the calculated revenues in this great study (sciencedirect.com/science/articl…). Far from justifying investing in large-scale batteries. (7/10) Image
Should we do any large-scale batteries? Yes, we should! But not for energy arbitrage...but for power reserves, very-short term portfolio management (balancing, intraday), renewables integration, grid congestion, ... Just not to store a lot of energy and give it back later. (8/10)
But probably the true potential is with Electric Vehicles. The stored energy would be much larger...of course, these batteries are not primarily made for that, so the potential is much lower. Still, great potential...if we have incitative tariffs. (9/10) @RWTH Image
If you like this thread, you can follow my work here: (10/10) Image

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More from @JomauxJulien

Nov 7
Solar Capture Rate is defined as the weighted average of solar production by the (day-ahead) market prices. It gives the price that solar would get if sold on the market.

A tour of Europe of the last few years and some reflections. 🧵

1/10
As solar pushes market price down and as solar is concentrated on few hours (especially if you are from the Equateur), the effect can be quite fast.

We have several countries that have a solar capacity equal of higher than load in afternoon (Germany, the Netherlands).

2/10
Obviously, when it is clear blue sky, the market prices are zero or negative.

Let's start with Germany.

In red, we see that 2024 was really lower than other years.

A capture rate of 49% (May 2024) means that solar would have got only 50% of average market price.

3/10 Image
Read 10 tweets
Aug 26
Renewables should provide power reserves, not just energy.

Why? Because it could be profitable.

How? I explain here in a thread.

This is from my new post, you can have the long version by reading it (link in my bio).

1/11 Image
First, market revenues of renewables are declining, and fast for solar.

This year, in Spain, three months with a capture price for solar of 10 €/MWh on average.

France, below 30 €/MWh since April.

Germany, around 40 €/ MWh since April.

2/11 Image
With declining revenues from the energy market, renewables should tap into the markets for flexibility: the power reserves.

Renewables should not focus on max prod, but on max revenues/market value.

3/11
Read 11 tweets
Jul 19
There are more and more negative prices in the electricity markets.

Paying others to consume something is like considering it as "trash". Does not seem logical.

So, here is a thread with the reasons for negative prices. 🧵

1/11 Image
First, let's be clear, negative prices are increasingly present when solar is generating (at least in Germany, see below)

Here is a distribution of the number of negative price per hour. Already more negative prices in 2024 than previous years.

2/11 Image
Reason 1: impossible to reduce/switch off generation.

1a: hydro with reservoirs when reservoirs are full.
1b: run-or fiver hydro not made for not generating.
1c: etc.

And the big one: solar installed in "install-and-forget", which happens quite a lot.

3/11
Read 11 tweets
Jul 16
What's the marginal cost of wind and solar ? We tend to say that it is zero, but is that correct?

At what price should they bid?

A thread 🧵to introduce the reflection (to be explored more)

(Idea from a colleague)

1/8
First, let's skip all the cases where wind and solar are bidding at negative prices because of the support schemes (whatever it is). Let's consider a wind and solar plant that is fully bidding on day-ahead markets

What should they bid ?

2/
As you may know, day-ahead markets are pay-as-clear. If your cost is zero to produce 1 MWh, there is no reason not to bid at 0. Any cleared price higher would be given to you.

Anything below and you are not selected.

3/
Read 8 tweets
Jul 2
The missing piece of the energy transition is long term storage

We have everything else, from very cheap sources, batteries to dampen short variations, to improved tech to transmit and manage the grid.

But, long term storage is the missing piece.

1/
By long term, I rërë to a storage that would do a few cycles only per year max.

If you take Europe, you have virtually no solar in months (10x more in July than December in Germany).

And wind is great, but would it be enough? I doubt it. Hello dunkelflaute.

2/
So what can you do?

1. Lucky countries will use hydro (Nordics ... Not surprising that they use much more elec + are already green).

2. Boost biomass, biogas: you can do it so far...

3/
Read 7 tweets
Jun 25
Fun day today in EU power markets.

Due to a Partial decoupling, a local Auction has been done for the countries below.

A little tour of the local results 🧵 Image
Germany: hello prices at +2000 €/MWh. Peak prices being really really high ...

Peaker plants to be remunerated nicely. Image
-150 €/MWh in Belgium. Probably sunny tomorrow then.

Amazing prices for a Wednesday ... Image
Read 4 tweets

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