A coalition of battery storage developers representing a significant share of the UK market have written an open letter to the Government and the Electricity System Operator (ESO), calling for a resolution to ongoing market issues and to “recognise battery storage as critical to Britain’s national energy infrastructure”, according to a 17 September statement.
The coalition – comprised of Zenobē, Eelpower, Harmony Energy and Field Energy – has come together as the ESO prepares to transition into the new National Energy System Operator (NESO). This new public body will be responsible for helping to deliver the Government’s target of a net zero power grid by 2030.
In a letter to the ESO, the coalition has said the ongoing issue of constraint skips is “holding back investment and driving up consumer bills”, all while risking the 2030 target.
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.
The coalition’s own data shows that batteries are being skipped over 90% of the time during constraint periods for some sites. The letter spells out the consequences of this, with “consumers paying more, clean renewable energy being wasted and fossil fuel generation used instead.”
With grid constraints set to cost consumers more than £2 billion a year by 2030, and investor confidence “dwindling”, the coalition wants to work with Government, the ESO and Ofgem to urgently fix the issue of constraint skips.
In resolving the issue of constraint skips, the coalition say the Government can cut consumer bills and give investors the confidence to invest in the UK’s energy transformation moving forwards.
James Basden, Founder of Zenobē, said: “Investment in batteries does not need money from the Government. But it does require a market that works properly, and this is not currently the case.
“Solving this issue does not require major new investment or infrastructure. With more transparency and engagement with industry, we can fix this quickly.
“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 urgently fix this long-standing issue and reduce the consistently high levels of constraint skips we are seeing.”
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.”
