Only with the flexibility and speed of battery storage, will the Government be able to meet its ambitious target while cutting energy bills.
Today, we, a coalition of battery storage operators in the UK, are calling on the Government to recognise battery storage as a critical part of our national energy infrastructure. Representing a significant share of battery storage projects in Great Britain, we are calling for urgent action to address issues within the system that are holding back investment and driving up consumer bills.
Right now, when there is too much wind power and the system is unable to transport it elsewhere, the Electricity System Operator (ESO) has a choice. The most straightforward option is to either turn off the wind turbines or store this excess energy in batteries. The cheaper option is often to use battery storage.
Today, however, the ESO is consistently underusing – ‘skipping’ – batteries. Even when batteries are the cheapest and fastest solution to meet the needs of the GB grid, the ESO favours more expensive options too frequently. Our own data – verified by the ESO – shows that batteries are being skipped over 90% of the time during constraint periods for some sites.
The consequences are clear. Consumers are paying more, clean renewable energy is being wasted and fossil fuel generation is being used instead. The cost of these constraints to consumers could exceed £2 billion a year by 2030. Meanwhile, investor confidence is dwindling.
But the solutions are ready and waiting. They can be implemented quickly and at little cost. We want to be a constructive partner to help fix these issues.
Investment in batteries does not need money from the Government. But it does require a market that works properly. The Government has an opportunity to cut bills and emissions by ensuring that grid-scale batteries are being properly utilised and that the market is fit for purpose.
As a coalition, we are ready to work together with the Government, the ESO and Ofgem to fix this long-standing issue. By reducing the skipping of batteries, we can cut consumer bills while giving investors the confidence to invest in the UK’s energy transformation.
Peter Kavanagh, CEO of Harmony Energy, said: “Urgent action on Balancing Mechanism skips is required if we are to deliver a sustainable future for Britain. As part of this coalition, we look forward to working with the Government, the ESO and Ofgem to address the systemic challenges affecting our energy grid. If we get this right, we can unlock investment and deliver value for consumers right across the UK.”
James Basden – Founder Director, Zenobē
Peter Kavanagh – CEO, Harmony Energy
Mark Simon – CEO, EelPower
Amit Gudka – CEO, Field Energy
FT: National Grid blames old computer systems for sidelining batteries
