ECONOMICS OF ENERGY STORAGE An analysis of the administrative consequences of electricity storage

This report discusses the administrative aspects connected to the introduction of electricity storage in the energy system. First, the macro-economic aspects of utilizing storage facilities are discussed, and the possible benefits of storage in the electricity system are summarized. Next, the discussion focuses on the administrative aspects. In particular, the regulation system of the Dutch electricity market is reviewed, paying particular attention to the market design in connection with Distribution Network Operators. A number of relevant aspects are discussed, such as the incentives for the Operators to optimize network performance, as well as the means available to the Operators to stimulate third parties to do so. Finally, the perspectives for storage operators to enter directly on the different power markets are treated. Generally, one can conclude that the administrative aspects for storage facilities leave room for improvement.