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In 2018, The British Storage Capacity Will Be More Than 500MW
- Jul 16, 2018 -

In 2018, the installed capacity of the large scale battery energy storage system in the UK will exceed 450MW. In the first half of this year, only about 250MW of the energy storage system was deployed. This is made up of more than 1MW energy storage projects, including larger energy storage projects already on the user side.

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In the past few weeks, the UK energy storage industry has made a series of positive actions, including signing supply contracts, project easy hands, and the ongoing energy storage projects. The storage projects in Centrica, Anesco and rsted are being built, and the capacity of the UK installed energy storage project may exceed 500MW in 2018 if the energy storage project, which is recently awarded to the Fluence company, is included in the deployment of the UK energy storage project.

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After a slow start at the beginning of the year, the FFR (fixed frequency response) price of the power grid has begun to decline, and capacity market revenue has become more difficult to obtain, and some energy storage projects may be suspended before the actual start of the implementation. However, the energy industry will never stagnate, and enterprises have now begun to discuss market opportunities behind user side storage by providing wider benefits to grid owners and not easily affected by the fluctuations of external revenue streams.


In the past two years, some energy storage projects in Britain have been submitted to the planning in the second half of 2017. Comparing the FFR (fixed frequency response) projects over the past two years, we can see clearly how fast the industry is driving new projects.


Uncertainty continues from the top


In terms of policies and regulations, there is always a certain degree of uncertainty in the industry. Meanwhile, the increase in the number of battery items that can provide frequency response services has led to a reduction in the prices of these services.


However, the ongoing system demand and product strategy (SNaPS) of National Grid, a British transmission system operator, has offset some of the demand. These signals show that changes made through system requirements and product strategy (SNaPS) will simplify the process of project bidding and open up the service that can not be used before the battery energy storage project, so there are some optimistic factors.


However, the regulatory work of the UK national energy regulatory agency, Ofgem, has also aroused concern in the industry, and the upcoming changes in TRIAD services have prompted some project developers to further adjust their business models.  However, it is still believed that the new changes still need to charge large energy users with the cost of using the power grid, and the benefits behind the user's side storage are more extensive.


In addition to these hesitant and policy uncertainties, new opportunities are emerging. Norway energy DNO is starting to consider how to buy local services in the UK, and British UKPN is ready to start the second round of local service procurement in the fourth quarter of this year. At the same time, WPD has been working with Centrica to develop an experimental local energy network that will provide opportunities for user side storage and power grid side storage projects.


The early Big Battery large energy storage project was launched as a pilot project and opened in late 2014.


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How is the scale of energy storage in 2018


Since 2017, the number of new planning applications submitted has decreased year by year. However, a large number of data submitted in the year before the volume market auction showed speculative efforts. It is not clear how many of these projects are in the absence of capacity market (CM) contracts.


In 2018, more than 700MW of new energy storage projects have been submitted to planning, including the 30 sites, which are larger in the screening stage. Most of the capacity submitted in 2018 is made up of 49.9MW energy storage projects, which will show how now it is distributed among large user side storage projects, which account for most of the capacity and are more common in user side storage projects.


Some even further, companies such as RWE, Drax and EDF have submitted hundreds of megawatts of battery energy storage projects, while Pivot Power's recent plan will see market participants start offering 45 50MW energy storage projects.


In major projects submitted last year, some key players appeared on the grid side and user side projects. These companies have demonstrated their ability to rapidly develop energy storage projects and adjust business models to take advantage of the most favorable source of revenue.


These companies have already developed a sign of a sustainable business model that they are now building energy storage projects in a variety of modes, including power grid side and user side storage projects coexisting with renewable energy and independent batteries.


As of June 2018, EPC and integrator accounted for more than 90% of energy storage capacity in the UK. These manufacturers have the experience of installing renewable energy such as solar photovoltaic, and their business has been diversified as the European market has fluctuated. The projects currently under construction mean that they will improve their dominance of the market by the end of 2018.


With the development of the battery energy storage market in the UK and the completion of more projects, and the type of projects being built, the revenues gained are becoming more and more important. This enables people to understand the proposed energy storage projects and active companies in different market segments to identify future market trends.


The UK battery energy storage project database research report traced the early planning stage to completion of the more than 500 UK battery energy storage projects, which is an essential resource for companies deploying battery energy storage projects in the UK.