Tuesday, October 4, 2016

REA: UK now boasts over 3GW of operating energy storage capacity

There are now 35 standalone grid-scale projects and at least 1,500 residential energy storage units in operation, industry analysis finds

The UK now boasts 35 standalone grid-scale storage projects and at least 1,500 residential storage units, according to new industry data.

A report released today by trade body the Renewable Energy Association (REA) found that as of August this year there was a total of 3.23GW of storage capacity in operation across the country, with technologies spanning from lithium-ion batteries to pumped hydro systems.

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The analysis also reported at least 453MW of new projects are planned or in development, while an additional 200MW of enhanced frequency response services have recently been contracted by the National Grid.

In addition, the industry reported that "multiple gigawatts" of proposed storage projects were planned but have not yet had the final go-ahead. The pipeline includes much of the 1.2GW of projects that were pre-accredited ahead of the recent National Grid auction, meaning they have already demonstrated they are ready to deploy and have secured planning permission and grid connection capacity.

The report said "anecdotal" reports the REA collected indicate there have been tens of GW worth of applications for storage to the distribution network, although this may not all have planning and grid permission.

The REA is now calling for a better policy framework to be put in place to unlock this fast-expanding market. James Court, head of policy and external affairs at the REA, said with many technologies having quickly advanced to reach commercial scale, the storage industry is not seeking a direct subsidy. But he warned the lack of a joined-up and supportive policy framework remains the "single greatest barrier" to the industry's growth.

"Storage is already a reality for the UK and right now there's an opportunity to cement us as a global centre for investment, deployment, and research," he said. "Storage is a critical technology for the decentralisation of the UK's energy system and will support long-term renewables deployment."

A report released earlier this year by the government's infrastructure advisers found smart energy infrastructure including energy storage could save consumers up to £8bn a year by 2030 if the right policy framework were put in place.

Other recent reports released from a range of organisations including the Carbon Trust, Smartest Energy, and the Solar Trade Association have also urged the government to tackle restrictive regulatory frameworks and remove market barriers to allow the UK's nascent energy storage industry to flourish.

"Energy storage has great potential in the UK, and can unlock billions worth of savings according to the government's advisers," said Frank Gordon, senior policy analyst at the REA.

"We need more action to unlock the opportunities and the government's awaited Call for Evidence should address crucial issues such as a definition for energy storage in legislation or the grid codes. We are also seeking an end to double charging of grid fees and consistent treatment when connecting to the grid."


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