Ofgem is to consider Scottish Power’s proposal to create demand side response (DSR) technology classes intended to apply new de-rating factors to energy storage used as part of DSR bids into the Capacity Market in 2019.
British vertically-integrated utility Scottish Power has come under scrutiny from the demand side response (DSR) sector after proposing to national regulator Ofgem that de-rating factors applied to large scale battery storage should be extended to those used to provide DSR in the Capacity Market.
The “devil is in the detail” when it comes to making regulatory changes in the US to open up wholesale markets for energy storage to participate in, a regional chief of regulator FERC has said.
The capacity market is rapidly becoming “outdated” after the latest auction failed to secure capacity and value for new technologies like energy storage, which is now in “a state of flux” following changes to de-rating factors.
Over 9,000MWh of battery energy storage could be deployed in Britain over the next five years as the sector enjoys a trend towards “explosive growth”, a market analyst has said.
The latest auction for the UK’s Capacity Market cleared at a record low price at the end of last week as battery storage projects seemingly struggled to compete.
GE has formed a strategic alliance with UK energy infrastructure company Arenko to develop grid scale batteries in the UK, starting with a 41MW system in the Midlands.
Battery storage and demand-side response have continued to play a crucial role in the UK’s power mix, together landing more than 500MW of contracts in the most recent T-1 Capacity Market auction.
The vast majority of battery projects set to compete in Britain’s upcoming Capacity Market (CM) auctions will face significantly decreased de-rating factors after it emerged that most projects are still set to use either 30 minute or one hour duration batteries.
