Posted on: 13/09/2016
Energy storage capacity in the UK could hit 10GW by the 2030s, according to a new report.
The report by not-for-profit organisation Regen SW said the full potential of the technology could be reached if the UK Government aligns its policies and regulations to encourage investment.
Johnny Gowdy, Director of Regen SW, said: “Energy storage technology is developing rapidly, costs are falling, and the flexibility it provides can reduce the need for expensive new energy generation projects.
“However, developers and investors face an unsolved ‘Rubik’s cube’ of technologies, regulatory frameworks, revenues and costs.”
Energy storage like a ‘Swiss Army Knife’
Green Hedge Energy, law firm TLT and Triodos Bank also contributed to the report.
Neils Kroniger, Managing Director at Green Hedge Group, said: “Like a Swiss Army Knife, energy storage can deliver a wide variety of critical services.
“Unlike a Swiss Army Knife, already today it is cheaper than most alternatives, which means that we look forward to strong deployment without the need for any new subsidies.
“By making the different revenue streams work together better, BEIS, Ofgem and National Grid could eliminate risks to investors in storage, which in turn could deliver even greater savings to consumers.”
Report follows first EFR auction
A report by SmartestEnergy last month called for the National Grid to provide more certainty on future frequency response capacity in order to drive the emerging energy storage sector.
It consulted 45 battery storage innovators in the lead up to the first Enhanced Frequency Response auction to explore the barriers they face to commercialisation.
Bids to take part in the auction were received from 37 providers, the majority of which were from battery assets, and of these eight were accepted at an average price of £9.78/MW.
> Download Regen SW's report
> Download SmartestEnergy's report