Ofgem and BEIS have taken the wrong approach in defining storage as generation, according to Endeco chief executive Michael Phelan.
In an interview with New Power Report Phelan said storage should have its own definition. But if it had to fit an existing category, defining it as generation was a “thought-provoking opportunity missed”. It has more in common with load, he said, but “the whole utility system is set up around generation” so the industry tended to use that definition.
The new storage classification is needed to avoid ‘double counting’ industry charges for the power export and import aspects of storage.
Phelan also said the focus on generation meant the industry looked for new hardware to meet needs like flexibility and frequency control, whereas load management could achieve those goals at lower cost.