The Battery Report (SV)

Why are more batteries needed?

Batteries can facilitate the deployment of renewable electricity and reduce the need for expensive grid reinforcements by making more efficient use of the existing grid. Batteries can also significantly increase the security of supply of the electricity system by providing the flexibility needed both to ensure a balance between electricity generation and consumption every hour of the year, and to ensure stability every second.

A balanced electricity trade

"What do we do when there is no wind?" is one of the most common questions in the energy debate as the share of wind and solar power increases. The answer is flexibility, and batteries reduce the costs of the imbalances that occur.

1. Flexibility is cheaper than new nuclear power.

   An electricity system with only renewable electricity generation supported by storage and flexibility would cost SEK 18 billion less per year than an electricity system with 9 GW of nuclear power, according to a study from Chalmers University of Technology.

2. Batteries reduce the cost of imbalances

   The Swedish grid's need for reserves to manage imbalances in the electricity system is expected to almost double between 2025 and 2035, and triple by 2045. Batteries can play a key role in reducing the cost of these reserves, which in turn reduces costs for all electricity consumers.

A more stable electricity system

An electricity system must be able to handle all deviations between production and consumption down to tenths of a second and at the same time be prepared to deal with major disturbances, such as the rapid shutdown of a nuclear power plant. Otherwise, the frequency will increase or decrease, in the worst case resulting in a blackout.

Batteries are well suited to maintaining frequency because they are fast and precise in their regulation. They already play a key role in many ancillary services. More batteries also reduce the costs of all ancillary services procured by the transmission system operators.

A more efficient grid

The need for investment in the electricity grid is estimated at up to €8.85 billion (SEK 1 000 billion) by 2045 in Sweden. The needs in the regional and local networks alone up to 2030 correspond to around €0.018-0.022 (0.20-0.25 SEK/kWh), spread over all electricity use.

Batteries reduce the need for investment in the electricity grid by cutting the peaks when the grid is most heavily loaded so that the capacity of the entire grid can be better utilized. This allows more electricity generation and new electricity users to be connected more quickly, while avoiding some grid expansion altogether and significantly reducing costs for electricity users.

Local capacity shortages in electricity grids can also be managed through, for example, local flexibility markets, where batteries can help to increase or decrease power output. Another tool is conditional contracts, where batteries can provide a backup when withdrawals or inputs are limited for a grid customer during stressed situations.

Developments in the battery market

The battery market is developing at an enormous pace and installed capacity is expected to multiply in the coming years. This applies to large-scale battery parks, installations in buildings and industries, as well as smaller home batteries that are often connected to virtual power plants to act as a shared resource that creates benefits for both the battery owner and the electricity system.

In recent years, development has been driven by good profitability for battery owners who offer ancillary services to Svenska kraftnät, the Swedish TSO. As the markets develop, batteries will also be central to reducing the costs of imbalances in the electricity market and to increasing flexibility in the electricity grid.

According to CheckWatt's forecast, battery capacity in Sweden will increase fivefold in 2024. By 2030, battery capacity is estimated to have grown to 6-10 GW.