WIREDGOV

A new report by Carbon Trust outlines significant cost savings for the UK electricity system, should the potential for energy storage be realised.

The report  was collaboratively funded by three major utilities, E.ON, SSE and Scottish Power, as well as the Department of Energy and Climate Change (DECC) and the Scottish Government. The analysis, carried out over 12 months is the most comprehensive review to date of the benefits of storage at a UK-system level.

The range of potential benefits provided by energy storage includes absorbing “wrong time” energy, releasing it to meet demand, supporting the grid with capacity constraints and balancing intermittent low carbon generation. Infrastructure can also avoid expense associated with reinforcing assets and adding new capacity.

The report assesses the wider benefits of flexibility solutions for a future UK electricity system, examining the impact storage might have to bill payers across three future energy scenarios out to 2030. These include the National Grid’s ‘No Progression’ and ‘Gone Green’ scenarios, as well as a third scenario developed specifically for this report showing a least-cost pathway for the UK to meet its 2030 carbon emissions reduction target.

Energy storage is a multi-benefit, multi-stakeholder opportunity which requires coordinated action across policymakers, regulators and industry to realise available benefits. The report finds that despite the technology readiness and the significant societal benefits of energy storage, the split of its benefits across network stakeholders makes it difficult for a single one to develop a business case. An incompatible market structure has reduced the commercial viability of storage for investors by increasing risk and reducing revenue potential.

Click here to read the report in full.