Redistributive impact of taxation of energy products in the EU Differences across households in consumption as shares of income for the various energy products imply that the tax burden is unequally distributed.
Typically, these costs are expressed as a levelised annual cost, that is, they represent the amount that an investor would expect to pay annually for the entire operation of the energy storage system, including the repayment of the initial capital costs.
Indeed, the taxation of energy products spans from nearly 85% on liquid fuels in Greece, to 6% on electricity in Portugal and Malta. Also, while rates vary significantly between countries, vehicle fuels (e.g. petrol and diesel) and liquid fuels (e.g. gas heating oil) generally feature the highest rates of taxation.
In recent years, energy-storage systems have become increasingly important, particularly in the context of increasing efforts to mitigate the impacts of climate change associated with the use of conventional energy sources.
Economic feasibility of battery energy storage systems for replacing peak power plants for commercial consumers under energy time of use tariffs. J Energy Storage. 2020 June;29:101373.
Current knowledge suggests that ESS costs have recently been significantly reduced, and several economic analyses (e.g. ) have shown that these storage facilities are increasingly economically competitive with other energy sources such as fossil fuels.