Changes to the de-rating factors for battery storage projects competing in the UK’s Capacity Market (CM) will push the sector towards longer-duration batteries, while potentially sparking a shift towards energy arbitrage as a source of revenue for shorter duration applications. David Pratt heard from several industry sources following last week’s announcement.
Government policy and regulation offer the biggest barriers to the deployment of battery energy storage in the UK according to a cross-party group of MPs focussed on energy storage, which claims 12GW of batteries could be deployed by 2021 under the right circumstances.
A sustainable energy company founded by Swindon Borough Council, a local authority in western England, has submitted plans for a 50MW battery energy storage system (BESS) for its latest project.
Future battery energy storage projects in the UK have been hit with a major blow after the government published its intention to lower the de-rating factor in capacity market auctions by almost 80% for 30 minute duration batteries.
On-site energy storage is “the way that you make the subsidy free package work” for large scale solar according to climate change minister Claire Perry who has pointed to Anesco’s Clay Hill solar farm as proof of why the technology so longer needs financial support from tax payers.
Norwegian oil and gas company Statoil’s Batwind project in Scotland, combining wind turbines with energy storage, will have a battery system installed by system integrator Younicos.
Northern Powergrid, one of the six distribution network operators (DNOs) responsible for delivering power across regions of the UK, is to plough £1.9 million (US$2.53 million) into the creation of a smart energy grid across its network, allowing its eight million customers to trade power and services using their home solar, battery systems and electric vehicles (EVs).
Verv, an energy monitoring and AI company, has laid claim to launching the UK’s first energy trading community at a housing estate in Hackney, East London.
Battery Energy Storage Solutions (BESS), an investor and would-be asset owner in the UK, has raised more than £50 million (US$66.18 million) of outside investment, setting its sights on making energy storage project acquisitions in Britain.
UK renewables and battery developer Anesco has warned that the looming de-rating of battery storage in the Capacity Market risks scaring investors away from the technology.
