An official from the Department of Business, Energy and Industrial Strategy (BEIS) has pushed back against claims that “question marks” hang over government decarbonisation plans, stating that good progress had been made.
Ofgem’s head of networks has reiterated the regulator’s warning to operator companies that they should expect tougher price controls after pointing to “double digit returns” deemed too high within current market conditions.
Changes to the de-rating factors for battery storage projects competing in the Capacity Market (CM) will push the sector towards longer-duration batteries, while potentially sparking a shift towards energy arbitrage as a source of revenue for shorter duration applications.
Government policy and regulation offer the biggest barriers to the deployment of battery energy storage in the UK according to the All-Party Parliamentary Group (APPG) on Energy Storage, which claims 12GW of batteries could be deployed by 2021 under the right circumstances.
Future battery energy storage projects in the UK have been hit with a major blow after the government published its intention to lower the de-rating factor in capacity market auctions by almost 80% for 30 minute duration batteries.
Climate change minister Claire Perry has said she would be “personally disappointed” if the UK used ‘flexibilities’ to fill the shortfall in meeting the fourth and fifth carbon budgets identified in her own Clean Growth Strategy (CGS).
