Ampere Plus OÜ has completed a financial model that provides an accurate forecast of the payback period of the energy storage systems (ESS) to be built. This forecast helps to understand the profitability of the investment and also makes the energy sector transparent for the final consumer. The establishment of the ESS will lead to a significant change in the landscape of the energy market not only in Estonia, but throughout the Baltics and Scandinavia. These regions have already shown a strong interest in energy storage, and by 2050 it is projected that energy storage could account for up to 25% of global electricity consumption.
The Baltic States and Scandinavia have made significant progress in integrating renewable energy sources such as wind and solar. However, due to the intermittent nature of such energy sources, the need for reliable storage systems arises. The ESS can bridge the gap between demand and supply by ensuring that electricity is available even when the sun is not shining or the wind is not blowing.
Understanding the financial twists and turns of energy storage systems is very important. It is not only a question of storing energy, but also of how to do it efficiently and cost-effectively. With the help of the financial model created, stakeholders can forecast the return on investments, operating costs and long-term profitability of the ESS. The financial model simplifies investment decision-making, helps promote innovation and accelerates the deployment of storage systems.
One often overlooked but still important part of the energy landscape, especially with regard to the integration of energy storage systems, is energy arbitrage. Simply put, energy arbitrage means buying and storing electricity when prices are low and sold back to the grid when prices are higher. The Baltics and Scandinavia are seeing increased variability in renewable energy production, which increases opportunities for energy arbitrage. A well-defined financial model, is essential to maximizing the potential of energy arbitrage. Understanding price fluctuations and the operating costs of storage will allow participants to better time their energy buying and selling decisions, ensuring profitability. In addition, energy arbitrage can help stabilize prices in the electricity market, benefiting not only individual investors or entities, but the entire regional network. As the market becomes more dynamic due to the integration of renewable energy, the strategic use of energy arbitrage plays an important role in maintaining grid balance and economic viability.
The introduction of ESS could lead to a more stable and reliable electricity grid. This is especially important for the Baltic and Scandinavian countries, where there are cold winters and a consistent supply of energy is required. By reducing the need for state-of-the-art power plants that only start up during times of high demand, storage systems can reduce overall energy costs for consumers.
The financial model of clear energy storage developed in the framework of the cooperation between Ampere Plus OÜ paves the way for greater integration of renewable energy into the grid. As energy storage becomes more economically viable, more renewable energy projects can be launched with confidence, knowing that the energy produced can be stored and transferred when needed. This can make a significant contribution to achieving the region's renewable energy targets and reducing greenhouse gas emissions.
The Baltic and Scandinavian regions have a good history of implementing energy cooperation projects in the energy sector. With ongoing projects such as Balticconnector and NordBalt, connectivity will increase even more. A strong financial model for European energy systems can promote regional energy trade and cooperation by ensuring that stored energy can be efficiently shared and traded across borders.
The financial model of the energy storage systems created is merely a commercial step, it is a strategic step in shaping the future of the Baltic and Scandinavian electricity markets. Therefore, Ampere Plus also started working with KPMG, an international consulting company experienced in the energy sector, to develop the financial model of energy storage issued and also to analyze additional potential business opportunities offered by energy storage. As these regions increasingly lean towards renewable energy, understanding the financial implications of energy storage systems is crucial. Proper financial planning ensures that the transition to greener energy sources is not only sustainable but also economically feasible for all parties involved.
