Directive (EU) 2023/2413: A New Era in Energy Storage Regulations
Malta Inc. explores the Implications and Opportunities
On March 14, 2023, the European Commission took a significant step towards reforming the European electricity market, addressing the urgent need to reduce reliance on gas-fired generation by adopting non-fossil flexibility solutions like energy storage and demand response.
At Malta Inc., we are keenly analyzing the impact of the Directive (EU) 2023/2413, issued by the European Parliament and the Council on October 18, 2023. This pivotal directive amends Directive (EU) 2018/2001 and Regulation (EU) 2018/1999, as well as Directive 98/70/EC, focusing on the promotion of energy from renewable sources. It also marks the repeal of Council Directive (EU) 2015/652, as noted in the Official Journal of the European Union on October 31.
The Directive, which came into force on November 20, 2023, sets an ambitious renewable energy target of at least 42.5% by 2030, with aspirations to reach 45%. Its objectives are particularly relevant to Malta’s long-duration energy storage solution, as they emphasize accelerating renewable energy integration, including the co-location of renewable energy and energy storage, establishing Renewable Acceleration Zones, and streamlining the authorization process for such initiatives.
Key Highlights of the Directive:
Co-location Concept Development: The Directive introduces a new definition for co-location and allows member states to designate specific areas for network and storage projects essential for renewable energy integration.
Renewable Acceleration Zones: Standards in these zones aim to mitigate the impact of renewable energy plant installations and co-located energy storage. The Directive mandates the inclusion of co-located energy storage in the cartography, to be finalized by May 21, 2025.
Streamlined Authorization Process: The Directive simplifies the authorization process, offering conditional exemptions for environmental impact assessments for projects essential to renewable energy integration. This includes co-located energy storage, both within and outside Renewable Acceleration Zones.
Urban Heating and Building Storage: This aspect of the Directive opens new avenues for energy storage development, promoting efficient urban heating and cooling systems powered by renewable sources. It encourages the integration of thermal energy storage and demand response systems.
As Malta, we recognize the importance of this Directive in shaping EU countries' approach to achieving these goals. Each member state will have an 18-month period to incorporate the Directive's provisions into national law.
However, challenges persist, particularly in establishing a synchronous storage Power Purchase Agreement (PPA) framework and a Guarantees of Origin market tailored for Long Duration Energy Storage (LDES) projects. Addressing these challenges and extending European financial support for thermal storage plants will be crucial for the advancement of energy storage.
In conclusion, Directive (EU) 2023/2413 represents a significant step forward in regularizing the energy storage market, a development Malta views as both a challenge and an opportunity in our ongoing commitment to energy innovation.
About Malta Inc.
Malta, Inc. has developed a 100 megawatt Clean Power Plant, a like-for-like replacement for today’s fossil fuel-fired plants that delivers affordable, reliable, on-demand clean energy 24/7.
Malta’s innovative long-duration energy storage technology stores electricity as thermal energy from eight hours to eight days or longer, later returning it to the grid to meet hourly, daily, and weekly needs. The Malta system also provides clean heat for industrial and district heating applications. Visit: www.maltainc.com