Powering the transition to a carbon free future, Powersystems reviews 4 key drivers of market growth for Battery Energy Storage Systems (BESS).
The UK market for battery energy storage systems has experienced significant growth in recent years, driven by several factors including:
1. Increase in renewable energy generation: The growth of renewable energy sources such as wind and solar has led to a corresponding growth in demand for energy storage solutions
2. Government incentives: The UK government has introduced various incentives and subsidies aimed at promoting the adoption of renewable energy technologies, including energy storage systems including:
- Contracts for Difference: This CfD scheme provides long-term contracts to low-carbon power generation projects, including battery energy storage systems, to support their development and growth.
- Smart Export Guarantee: This scheme provides financial incentives for households and businesses that generate renewable energy and export surplus power back to the grid. The Smart Export Guarantee (SEG) launched on 1 January 2020 and is a government-backed initiative. The SEG requires some electricity suppliers (SEG Licensees) to pay small-scale generators (SEG Generators) for low-carbon electricity which they export back to the National Grid, providing certain criteria are met.
These incentives are designed to support the growth of the battery energy storage market and encourage the adoption of renewable energy technologies in the UK.
3. Declining costs: The cost of battery storage technology has decreased significantly in recent years, making it more accessible and cost-effective for consumers and businesses
4. Improved grid stability: Battery energy storage systems can help improve grid stability by providing backup power and balancing supply and demand.
- Frequency regulation: They can quickly absorb or inject electricity into the grid to balance fluctuations in supply and demand, thus maintaining a stable frequency
- Peak shaving: Battery storage systems can store excess electricity during off-peak hours and release it during peak demand, reducing the need for additional power plants to meet peak demand
- Grid stability: They can provide backup power to the grid during power outages and other grid disruptions, ensuring stable and continuous power supply
- Renewable integration: Battery storage systems can store excess renewable energy generated during periods of low demand and release it during periods of high demand, allowing for a more reliable integration of renewables into the grid
By providing these services, battery storage systems can enhance grid stability, reduce the need for conventional power plants, and improve the integration of renewable energy sources.
Overall, the UK battery energy storage market is expected to continue its growth trajectory in the coming years, driven by ongoing developments in technology and increasing demand for renewable energy.
Notes to Editors:
- This article is written by Jules Daly, Marketing and Communications Manager at Powersystems UK.
- Email firstname.lastname@example.org Telephone 01454 318000
- Photography Copyright please credit all images used to powersystemsuk.co.uk
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