The vast majority of battery projects set to compete in the 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.
Greater power margins and falling electricity demand sent peak market prices tumbling, according to energy monitoring firm EnAppSys.
National Grid has recommended that targeted capacity for both the T-1 2018/19 and T-4 2021/22 Capacity Market auctions be cut.
With the release of the most recent Capacity Market pre-qualification register, the UK’S utility-scale battery storage pipeline has now reached nearly 8GW. Solar Media market research analyst Lauren Cook takes a deep dive into the projects that made it through pre-qualification, and what these results mean for the projects likely to get built in 2018.
Changes to the de-rating factors for battery storage projects competing in the 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.
A significant number of battery storage assets representing multiple gigawatts of capacity have cleared the first hurdle towards competing in forthcoming Capacity Market auctions.
The joint Irish and Northern Irish capacity mechanism has moved one step closer this afternoon by clinching EU state aid approval.
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 Department of Business, Energy and Industrial Strategy (BEIS) has refused to provide any clarity over when a decision on the potential derating of energy storage assets within the capacity market (CM) will be made despite a senior policy advisor stating the judgement is “imminent”.
Chris Pritchett, contract lawyer and partner heading up the energy and environment practice at Foot Anstey, recently served as moderator for the “Developers and financiers debate” at the Energy Storage Conference at the Solar & Storage Live 2017 show in Birmingham. In attendance were fund managers and project developers and a robust discussion followed and afterwards, Chris caught up with Andy Colthorpe for an in-depth interview on camera.
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.
National Grid will have a greater power margin this winter than first expected, effectively putting to bed any fears over blackouts this winter.
The Department for Business, Energy and Industrial Strategy (BEIS) has incurred the wrath of battery storage asset owners by proposing significant changes to how their generation classes are de-rated within the Capacity Market (CM).
UK power producer Drax has laid out its intention to repurpose its coal plants after increased depreciation of those assets caused the firm to incur a H1 loss.
A new report issued by the Association for Decentralised Energy (ADE) has said failures within the Capacity Market mechanism are undermining the UK’s efforts to decarbonise its power sector.
National Grid is expecting a more significant electricity margin this winter as the capacity market begins to deliver back-up generation.
Rolf Martin Schmitz, the chief executive of German energy giant RWE, has said his company is casting at least one eye on the UK energy market for future M&A activity.
Provisional contracts of over 312MW of demand side response (DSR) capacity have been awarded in the latest transitional capacity market auction, the last to be dedicated solely to the demand turn down.
Thousands of UK businesses could save at least £20,000 a year by helping National Grid balance supply and demand, according to SmartestEnergy, which is currently bidding to provide 100MW of demand side response (DSR) in the capacity market.
The role end users play in the security of the UK’s energy supply is to grow significantly after demand side response gained three times the number of agreements it did in this year’s Capacity Market auction compared to last year.
The imminent capacity market auction could offer some clues on the direction of travel, writes Terry Macalister, but the government could be missing a trick by not steering the mechanism down a greener path.
A new report from Policy Exchange has called for a wholesale overhaul of the UK’s power system to create a level playing field for clean energy flexibility technologies to compete with dirtier forms, which would ultimately save consumers as much as £90 a year by 2030.