Today in Budapest, EU leaders adopted the Budapest declaration, which highlights the urgent need and determination to make the EU more competitive through a new European competitiveness deal.
SolarPower Europe has issued the following statement in reaction to the Budapest Declaration:
Walburga Hemetsberger, CEO of SolarPower Europe :
"The unprecedented growth of solar PV was a decisive factor in lowering energy prices during the energy crisis, and continues to be essential for EU’s competitiveness. The Heads of States are right to look for urgent measures in this respect. We ask EU leaders to boost electrification, grids and battery storage. Especially battery storage is a quick and effective way to reduce electricity price volatility. As our modeling shows, this combination can reduce day-ahead electricity prices by 25% by 2030 - a no-regret path toward a more competitive, secure, and prosperous European Union."
Notes
- New modelling shows that more renewables, electrification and flexibility can boost European competitiveness, slashing average day-ahead energy prices by 25% by 2030, and by 33% by 2040. Discover Mission Solar 2040.
- The EU Joint Research Centre warns that Europe needs to double its energy system flexibility by 2030 and increase by sevenfold by 2050.
What is Flexibility?
Flexibility is the ability of a consumer, electricity generator, or any other technology (like storage) to adjust how they feed in electricity to the grid, or consume electricity from the grid in response to grid needs or solar availability. Flexibility means less investment is needed for slow-to-build grid infrastructure. We also need to focus on the efficient and smart operation of grids with smart electrified resources. In real life that looks like a solar power plant coupled with battery storage, or a smart charging station that charges a car when rooftop solar PV is producing abundantly.
While we need to ramp up battery and heat storage, we should ensure flexibility from the demand side too. We can follow the example of nuclear countries who employ flexibility from the demand side to manage inherently inflexible nuclear production. Since it’s hard to switch nuclear on and off, consumers are encouraged to spread out their demand for electricity. ‘Time-of-Use’ tariffs make it cheaper to use nuclear electricity at night, incentivising electricity consumption at night, when demand is typically lower.
Discover the #LetsFlex campaign
What is Electrification?
Electrification means building an energy system on the principal of electricity – rather than combustion. So induction cookers rather than gas hobs, and vehicles that run on electricity, rather than diesel and other fossil fuels. Today, 24% of Europe’s energy system is electrified. We should reach at least 60% electrification in the EU by 2050 to achieve climate neutrality.
Discover the Electrification Alliance
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