Batteries and interconnection: Competing or complementary roles in the decarbonisation of the European power system?

Significant increases in renewable energy are needed in electricity systems in order to reduce greenhouse gas emissions, particularly in the face of increasing electricity demand arising from the electrification of heat and transport. Greater flexibility is required in the electricity system to facilitate this, using proven flexibility providers such as batteries and interconnection or new technologies yet to be proven. This paper investigates how the relationship between battery and interconnection development and carbon price can impact carbon dioxide emissions and renewable energy curtailment. The study simulates twenty-eight scenarios and sensitivities using a unit commitment and economic dispatch model of a 2030 European power system that acknowledges that coal will not be fully eliminated from the 2030 generation mix. The results show that interconnection and battery deployment can alleviate renewable energy curtailment by over 2.4 TWh for the basecase, but a high carbon price is critical to ensuring their deployment plays a complementary role in reducing emissions. The paper also examines the impact of batteries and interconnection on solar and wind energy curtailment. It reveals that battery development nearly doubled the solar energy benefits achieved by interconnection development in some cases, while wind energy benefited more from interconnection development.