Changes to the de-rating factors for battery storage projects competing in the UK's 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. David Pratt heard from several industry sources following last week's announcement.
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.
UK renewables and battery developer Anesco has warned that the looming de-rating of battery storage in the Capacity Market risks scaring investors away from the technology.
The UK government's Department of Business, Energy and Industrial Strategy (BEIS) has refused to provide any clarity over when a decision on the potential de-rating of energy storage assets within the capacity market (CM) will be made despite a senior policy advisor stating the judgement is “imminent”.
Anesco is investigating how it could adopt flow batteries into future projects instead of lithium as a response to growing uncertainty around the future of storage de-rating in the capacity market, Clean Energy News can reveal.