World : Overcoming uncertainty: UK energy storage market trends

The fourth annual UK Energy Storage Summit gathered industry professionals in the heart of London last week. The two-day event saw a wide range of topics discussed, debated, and disagreed upon, from regulatory issues to the Capacity Market to the rising demand for flexibility. In a Q&A with Energy-Storage.news, Solar Media Market Research analyst Lauren Cook discusses recent trends in the UK market. 

Can you explain the scope of your research into the energy market?

We’ve been tracking the UK battery storage market for around two years now and we’re tracking projects anywhere upwards of 250kw. We do find there’s a natural cut-off at around 50MW, due to the cut off for Nationally Significant Infrastructure Projects (NSIPs; major infrastructure projects in England and Wales ruled large enough to bypass certain normal planning requirements) - but we’ve [also] seen projects of up to 100MW and larger proposed by the likes of Drax.

What changes have you seen in the battery storage market recently?

Over the last year we’ve had a lot of uncertainty around the Capacity Market. We’ve also seen lots of changes to the pricing available through the frequency response services, for example in firm frequency response (FFR). Because of this, we’ve seen business models evolving to take these changes into account.

Projects that would have previously focussed on fast response frequency services are now having to look at a wider variety of revenue streams, including the Balancing Mechanism (BM – one of transmission system operator National Grid’s available tools to match supply and demand on the network), as well as others that are now becoming available.

We’re also now hearing about opportunities in the merchant power market. It’s an interesting time as we’re generally seeing a wider variety of business models; there’s no fixed business model being used.

 

Source : https://www.energy-storage.news/blogs/overcoming-uncertainty-uk-energy-storage-market-trends

Smart Grid Bulletin May 2019


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