Storage could not only offer efficiencies for GB in managing its own power grid, but could also be a business opportunity for UK Plc, according to a report from RegenSW.
The RegenSW paper, said, “UK projects are demonstrating a high degree of technical sophistication and complexity, including the development of new business models, aggregation, grid integration and system controls.
“This suggests that while the UK may not become a hub for battery manufacturing, it could become a centre for system architecture design, integration and business innovation.”
The report concluded that the cost of storage would fall, but the wide variety of storage technologies and system roles would mean cost reductions would not would be different across the storage industry. Meanwhile the services provided by storage are valued very differently; sub-second response services would be the most valuable, but they require a high degree of system performance and offer a smaller (potentially more competitive) market compared to larger scale reserve and time/price shift services.
RegenSW called for a full review of network charging methodologies, but argued that “a ‘behind the meter’ energy storage project, co-located with a high energy user or private wire network, possibly also co-located with renewable generation, could already form the basis of a viable business case”.
Johnny Gowdy, Regen SW director, commented: “As costs fall, storage will play a key role in providing reserves of energy to balance supply and demand and could become ubiquitous in our homes, workplaces and in transport. A UK energy storage sector in excess of 10 GW power capacity in the 2030’s is achievable.
“The government will shortly be consulting on taking forward the National Infrastructure Commission’s ‘Smart Power” report. This is a key opportunity to align policy and regulation to enable a more flexible power system with storage at its heart”.
Download the full report here