The Energy Storage Report 2024

Now available to download, covering deployments, technology, policy and finance in the energy storage market

UK T-1 Capacity Market battery storage contract awards up 63% to 627MW

LinkedIn
Twitter
Reddit
Facebook
Email

Battery storage projects totalling 627MW were awarded contracts in the UK’s 2023-24 Capacity Market auction which concluded yesterday (14 February), nearly a two-thirds jump on last year’s.

The T-1 2023-24 auction cleared at its second highest price ever, with 5,782.777MW procured at a clearing price of £60/kW/y, split between 269 Capacity Market Units (CMUs) from 103 companies. Of the 6,124.249MW of capacity that entered the auction, 94.42% was awarded an agreement.

This article requires Premium SubscriptionBasic (FREE) Subscription

Enjoy 12 months of exclusive analysis

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Annual digital subscription to the PV Tech Power journal
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

Battery storage was awarded 10.9% of the total with 627MW of projects winning out of a total 1GW of projects that qualify. A total of 74 battery storage CMUs won contracts.

That is an increase on the 385MW of contracts won by battery storage in the T1 2022-23 auction last year, as reported by Energy-Storage.news‘ sister site Current. That is a year-on-year increase of 63%.

It is worth pointing out that the bulk of the UK’s Capacity Market awarded capacity comes in the T-4 auctions which procure resources for four years in advance. Last year’s, for 2025-26, saw 1GW of contracts awarded to battery storage. The 2026-27 T-4 auction will be run next week (21 February).

For the most recent T-1, gas remained the biggest winner for 2023-24 with 45.3% of the capacity – though its dominance is waning – followed by nuclear which won 24.4%.

Developers with winning battery projects include Zenobe, Alkane Energy, Conrad Energy, Gore Street, Gresham House, GRIDSERVE, Harmony Energy, Infragreen, Pivot Power, Pulse Clean Energy, SMS Energy Services and SUSI Storage.

The biggest winners amongst these were Harmony Energy with around 150MW awarded while investor Gresham House’s projects won nearly 100MW.

Half (50%) of the battery storage projects which won awards were one-hour duration systems while 42% were two-hour systems.

See sister site Current‘s broader coverage of the auction results here.

Additional reporting by Molly Lempriere, editor, Current.

Energy-Storage.news’ publisher Solar Media will host the eighth annual Energy Storage Summit EU in London, 22-23 February 2023. This year it is moving to a larger venue, bringing together Europe’s leading investors, policymakers, developers, utilities, energy buyers and service providers all in one place. Visit the official site for more info.

Read Next

July 10, 2024
A 150MW BESS at the flagship Cleve Hill solar and storage project in the UK can now go ahead after its refusal by the local council was successfully appealed.
July 10, 2024
Powin will supply 880MWh of its BESS technology for a project developed by US utility DTE Energy in Michigan, US.
July 10, 2024
Queensland Hydro has launched a public consultation phase for its 2GW Borumba Pumped Hydro Project in Australia.
July 9, 2024
Australia-based battery energy storage system (BESS) developer, owner and operator Stor-Energy has received a strategic investment from HMC Capital, an ASX-listed asset manager.
July 5, 2024
Battery storage technology well and truly arrived at this year’s edition of Glastonbury, the world’s largest music and arts festival, helping power numerous parts including the Arcadia stage.

Most Popular

Email Newsletter