SAPI gives an initiative to the EC: Clear rules for battery storage

Non-transparent and discriminatory approach
According to SAPI, the state-owned company Slovak Electricity and Transmission System (SEPS) is adopting a non-transparent and discriminatory approach that prevents battery storage from entering the flexibility services market. This weakens competition in this area, which ultimately harms electricity consumers.

Energy storage is not only in the EU, but also in China, for example, one of the key tools for decarbonization, integration of renewable sources and combating high energy prices caused by shocks in the fossil fuel market.

BESS = flexibility
The support services that SEPS procures to ensure the stability of the system are essential for safe operation. They help to balance the differences between electricity production and consumption, and their importance is also growing with the development of renewable sources. Large battery storage is one of the technologies that can respond very quickly, accurately and without additional emissions. That is why in many EU countries they are gradually supplementing and replacing fast steam-gas sources and becoming a natural part of the flexibility market.

However, in Slovakia, according to SAPI, independent battery systems still do not have fair access to most support services. The restrictions are to be based on a study prepared for SEPS, the full text of which has not been made publicly available. SEPS argues mainly on the need for safe and reliable system operation. However, it also states that battery systems can already provide some types of services under certain conditions, such as FCR, or other services in combination with a rotating source.

SAPI decided to proceed with the submission to the European Commission also because if there are technical limits to the use of battery storage within support services, they should be addressed by transparent and verifiable technical conditions. SEPS could have defined these, for example, by requirements for capacity, state of charge management, power availability or certification, but not by a blanket exclusion of an entire category of technologies.

System security and technology-neutral rules are not mutually exclusive in the energy sector. On the contrary, well-defined technical requirements can enable wider participation of new technologies without reducing operational security.

Impact on consumers
The consequences of such an approach by SEPS can also be significant for end users – households and industry. A more closed market means less competition, weaker pressure for efficiency and potentially higher costs for support services. These are ultimately reflected in the costs of the electricity system, which consumers will pay in their electricity bills.

With such measures, Slovakia is also sending a negative signal to investors in battery projects and flexibility, although these solutions will be increasingly important in the modernization of the energy sector and in the fight against high energy prices. SAPI therefore calls for Slovak rules to be assessed according to the principles of transparency, proportionality and technology neutrality.