Belgium's Energy Minister, Tinne Van der Straeten of the Groen party, is actively pursuing measures to encourage more investors to participate in battery storage projects in the country.
Van der Straeten plans to introduce an additional auction within the CRM (Capacity Remunerating Mechanism) investment scheme, which has the potential to attract millions of euros in investments.
According to a survey conducted by Van der Straeten's office, there is a strong interest among investors to contribute more to battery parks in Belgium. The country has the capacity to accommodate up to 2 gigawatts of battery storage, equivalent to the power generated by two sizable nuclear reactors.
A recent report from the European Network of Transmission System Operators for Electricity (ENTSOE-E) highlights the need for additional storage capacity. The report reveals that during the summer months, there are periods when an excess of wind and solar energy is produced, causing strain on the grid. In such cases, wind turbines have to be shut down. Battery farms can play a vital role in capturing and storing this surplus energy, subsequently bridging the gap during periods of low wind and cloud cover. Furthermore, these storage facilities can assist in managing demand peaks, which are becoming more common as electrification advances.
Van der Straeten has acknowledged the limitations of the current CRM system, particularly for certain types of investors. Currently, two auctions are conducted for each delivery year: one taking place four years prior to the energy delivery date, and another occurring one year in advance. This setup allows for investments in technologies that require longer preparation time, like gas power plants, as well as projects that can be implemented more swiftly. However, battery farms fall somewhere in between these two categories.
To address this issue, Van der Straeten is considering the implementation of a "T-2 auction," specifically designed for deliveries two years later. Implementing this auction would necessitate amendments to the CRM. Depending on the timely completion of these legal changes by the government, the additional capacity could be available as early as the winter of 2026 or 2027. Photo by JesseDeMeulenaere, Wikimedia commons.