New analysis from Lane Clark & Peacock LLP-LCP’s Energy Analytics team highlights how rapidly scaling up battery storage capacity in Great Britain could avoid large volumes of renewable energy wastage and provide clean energy to power millions of homes. The report examines the main revenue sources available to investors from battery storage assets, how these markets will change over time and the opportunities for power traders.
The UK needs a 20GWh increase in battery storage capacity to reduce wasted wind power by 50%. Wasted wind power is predicted to cost English and Scottish consumers £1bn per year by 2025 without dramatic increase in storage as the nation seeks to reach 40GW installed offshore wind by 2030.
Battery storage could be a lucrative investment due to efforts to decarbonise power markets resulting in increased demand for battery storage.
“Spending on the UK’s energy storage infrastructure is likely to rise over the coming years. As the system changes and technologies mature, we expect the business case for battery storage to change in part due to their unique capabilities allowing them to provide value in multiple markets”, says Chris Matson, Partner in LCP’s Energy Analytics team and author of the report.
