Identification of barriers for the deployment of behind-the-meter storage technologies in the residential, commercial and industrial sector

Abstract

Intermittent renewable energy supply changes in time and is uncertain, and needs to be balanced (i.e. matched) with demand at all times, which requires system flexibility. Congested distribution and transmission grids in the Netherlands and Germany highlights the importance of providing system flexibility. Residential, commercial and industrial consumers can install their own renewable energy sources + energy storage to maximize self-consumption of renewable energy, to reduce electricity bills, reduce demand charges, to provide backup power and to provide grid balancing services. However, the deployment of behind-the-meter storage systems comes with major barriers, which are the main focus of this study. The research consists of a literature study, an analysis of behind-the-meter storage systems in the Netherlands and Germany and 10 expert interviews. Moreover, the Y-factor method, a method that allows to easily visualize, in once, which barriers are affecting what technologies, is used to score the identified barriers on stationary battery systems and electric vehicles enabled to bi-directional charge. The main conclusion is that 13 factors hamper the deployment of behind-the-meter storage systems, categorized in cost & financing barriers, technical barriers, market & regulatory barriers, multi-stakeholder complexity and behavioral barriers. Moreover, all combinations of technologies, sectors and countries face significant barriers for the deployment of these storage technologies. There can be concluded that cost & financing barriers play a major role for the deployment of residential stationary battery systems in the Netherlands as well as a lack of signals for self-consumption. Additionally, required investment costs and resource constraints play a significant barrier for commercial and industrial consumers in Germany. Moreover, the barriers: technology uncertainty, lack of communication protocols, dependency on other actors and a lack of a clear regulatory framework hamper the deployment of V2G technology significantly in both sectors in Germany.