UK regulator Ofgem elects to classify energy storage as subset of generation

LinkedIn
Twitter
Reddit
Facebook
Email
Inside the UK’s first 6MW / 10MWh grid-scale battery in Leighton Buzzard, England, completed in 2014 to trial the multi-application use of energy storage on electricity networks. Image: UK Power Networks.

A decision by UK gas and electricity markets regulator Ofgem’s to classify energy storage as a subset of generation must be a “stopgap measure” until parliamentary time is found.

This is according to the Renewable Energy Association (REA), suggesting that defining storage as its own asset class in primary legislation – a solution “strongly argued” for by the energy sector – would be preferable.

Ofgem announced it would be pressing ahead with including a definition of storage in the electricity licence last Friday (2 October), meaning the same rules and regulations will apply to the technology as other forms of generation from 29 November 2020.

This follows Ofgem consulting on the changes in July 2019, with many in the storage sector campaigning for a formal definition to be introduced for a number of years prior.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

This is in part due to the double charging of storage, where – because there was no formal definition – it was charged as both a demand customer for its imports and as a generator for its exports.

However, many in the sector argue that storage needs a “broader definition”, as the REA’s head of policy, Frank Gordon, said. This is because electricity storage is different to electricity generated, as well as energy storage having a number of technologies under its umbrella, not just those that are electricity-based.

“Classifying storage as a subset of generation should only be seen as a stopgap measure until parliamentary time allows for a more thorough review,” Gordon said.

Trade group, the Electricity Storage Network (ESN) has led the charge on calling for an introduction of a formal definition for storage. Speaking at the Energy Storage Summit in March 2020, policy lead at Regen Madeleine Greenhalgh, explained how the industry had been classifying itself as a subset of generation almost “by default” without any guidance from government.

To read the full version of this story, visit Current±,.

Read Next

November 3, 2026
BW ESS has put its 350MW/1,240MWh Hams Hall BESS project in the UK into operation, the largest in Europe.
November 3, 2026
Revera Energy has doubled its holdco credit facility from US$150 million to US$300 million to fund its BESS pipeline in the UK and Australia.
November 2, 2026
The UK BESS-owning Gresham House Energy Storage Fund has launched a formal sales process, a decision which has seen its share price jump 10%.
Premium
November 2, 2026
US President Donald Trump’s 26 August emergency executive order banning imports of certain foreign-made power equipment has prompted widespread public comment and private concern across the energy storage industry.
Premium
October 30, 2026
How should BESS owner-operators be thinking about augmentation of their projects further down the line?