The high rates of return in the UK energy storage market seen in the last 6-12 months are unlikely to continue going forward as capex costs increase and ancillary markets saturate.
Energy storage could garner a market share of one-third by 2025 for the new, pan-European automatic frequency restoration reserve (aFRR) market, which is set to launch in the middle of this year with France and Germany mutualising capacity first.
Although different energy storage technologies are often thought of as in competition with each other, it’s a case of all-hands-on-deck if we are to achieve deployment targets.
Optimisation deals have been announced for battery storage systems in the UK for Habitat Energy and Centrica with developers Eelpower and Arlington Energy respectively.
Investors are now becoming more comfortable with battery storage in the UK, with projects being profitable and cost-effective, according to industry experts.
Gresham House, a stock exchange-listed investor in battery storage in the UK and Ireland, has said the majority of its development pipeline projects could have at least two hour durations of storage when built.
