Due to the increasing share of renewables in
Great Britain’s generation mix, National Grid will contract 200 MW of
energy storage assets to stabilise the grid this year, contracts which
represent one of the emerging revenue streams for storage detailed in
Clean Horizon’s (Paris, France) new study.
Opportunities to enter the emerging energy storage market
Solar photovoltaic (PV) project developers in Great
Britain have felt the need to diversify their activities as renewable
generation sources are being gradually integrated within the electricity
market with the fading out of renewable support schemes, which makes
solar projects less attractive.
Therefore, the invitation to tender for the
provision of 200 MW of a new ancillary service launched this month by
National Grid was perceived by many of them as an opportunity to enter
an emerging market close to their core competencies: energy storage.
In this context, the study “Market Segment Watch:
Great Britain” by Clean Horizon analyses the different emerging revenue
streams associated with the various applications for energy storage
assets in GB: from residential batteries, to grid scale projects
providing power and energy services (such as frequency regulation or
balancing mechanism participation) through medium size energy storage
systems for commercial and industrial electricity consumers.
“This survey confirms our intuition that energy
storage is bound to play a major role for renewable integration in Great
Britain,” says Michael Salomon, CEO of Clean Horizon.
For this study, Clean Horizon interviewed more than
15 project developers, plus some key distributed network operators to
better understand the difficulties faced in the development of such
energy storage projects.
Developers prefer frequency regulation and triad avoidance
These interviews show trends within the market: for
instance, frequency regulation is the preferred application for 52% of
the project developers interviewed, then comes triad avoidance with 16%
of interests. Based on the market research, the report gives
recommendations to various stakeholders such as technology vendors,
integrators and solar developers.
This market study first points out that the two
extremes of the ladder, residential and grid scale energy storage
systems, have already developed in the UK.
Some early adopters buy storage solutions at the
residential level and the Enhanced Frequency Response tender is very
likely to provide a favourable business case for large-scale storage.
The medium-scale market is influenced by two
progressive changes: first, the number of consumers being exposed to
specific distribution and transmission charges is set to increase in the
coming year due to the electricity settlement reform launched by Ofgem.
Second, the transmission charges will increase of
15% on average each year until 2020. Those two factors lead Clean
Horizon to think that the commercial and industrial segment will be the
next one to adopt energy storage massivesource: http://www.solarserver.com
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