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OFGEM consulting on network charging, including a consultation on embedded benefits, with major impact on many storage installations. 

Exciting future’ - UK Electricity Storage Network ‘rejoicing’ as government seeks answers - 23 Nov 16






The Electricity Storage Network Energy

Highlights from last month's news

June 2017

National Grid SNAPS report 

Last week, National Grid published their System Needs and Product Strategy report and consultation document, setting out what they believe the electricity transmission infrastructure requires to continue to provide a balanced and well managed system into the future.

.  The headline proposals include:

  • ·         Replacing Enhanced Frequency Response (EFR) and Fast Frequency
  • ·         Response (FFR) with a new, simplified product.  This product is earmarked for launch in March 2018.
  • ·         Introducing a new frequency response scheme which values technology that resolves inertia in the system.
  • ·         Introducing a new scheme for procuring reserve power – indicative release in 2018/19.
  • ·         Introducing a new scheme for reactive power – also to be made available by the end of 2018/19,

The document also asks for opinions on which procurement options work best when appointing flexibility contracts. 

Further details are on the SNAPs consultation webpage; National Grid are also hosting webinars on this to explain the proposals in more detail on 3rd and 7th July, registration via Eventbrite

The Electricity Storage Network is keen to make sure that the needs of our members are considered in this consultation process.  Please come and speak with any members of the team at our event on 4th July if you have any particular concerns. We will also be scheduling a conference call in the week commencing 10th July to explain the proposals in more detail and collate member feedback.

If you wish to participate in the consultation, responses must be received by the 18th July 2017.


Farewell, but not goodbye


Zoltan, who has been looking after the ESN over the past six months, is moving on.  The ESN wants to say a heartfelt thank you to Zoltan Zavody for his time and dedication during this period. Zoltan has done a fantastic job taking care of the network and we hope to see him at ESN and industry events for many years into the future. 

Zoltan also wishes to extend a big thank you to all members for their support and involvement.

If you wish to extend a personal thank you to Zoltan, please join us at our event ‘Innovations and Life Cycle’ event in London on 4th July.  Click to view theProgramme, orRegisterthrough our website.


Welcome to our new Chief Exec


ON a more positive note, the Electricity Storage Network welcomes in our new Chief Executive, Georgina Penfold. With a background in energy management, George has worked with consumers, procurers, energy suppliers and brokers specialising in business strategy and policy and regulatory impact from the point of view of an industrial or commercial consumer.

Talking about her new role, George said:

“I am really pleased to be able to help represent the electricity storage industry as I firmly believe storage technologies are key to development of a flexible and resilient energy system. However, the strength of the network is in the engagement of its members and I look forward to meeting everyone in due course”

George brings a wealth of experience to the network, drawing on previous work with representative groups for major energy users and is a well-known industry commentator amongst major business consumers. When she is not talking about energy, George loves live music and being outdoors.




StephenStephenDear Stephen Woodhouse,StephenDr Jill Cainey, our Policy Director and Chief Executive until the end of 2016 was recognised with the award of the MBE in the Queen’s Birthday Honours List, for services to Energy Technology and the Community in Wiltshire.   Jill gave her time liberally to support the ESN, with much hard work in the rooms of Ofgem, BEIS, DECC and elsewhere, to argue the case for electricity storage, especially in those days when few really wanted to know anything about it.   Jill worked on the OFGEM/DECC Smart Grids Forum workstream 6, where together with Zoltan, the ESN made real progress demonstrating the role for storage in today’s power system.

Outside work, the award recognises Jill’s work with the local community, on the local parish council, supporting the educational outreach at Westonbirt Arboretum and being librarian for the Malmesbury Town Band.  You will know that Jill is currently working in Melbourne, Australia for S&C Electric Company as Grid Solutions Director - Energy Storage.


Electricity Storage: Innovation and Life-cycle Discussion Tuesday 4th July 2017


Energy storage is an important tool on the electricity system.  Over 500MW of battery storage has been contracted in GB, and the business case for other forms of electricity storage is improving as technology costs drop and market barriers are removed.

 A large part of an industry group’s role is to ensure such development happens in an efficient and environmentally sustainable way.   This meeting for members and non-members of the ESN will examine two important industry topics and develop the ESN’s policies and actions:


  • Innovation strategy and funding:

A significant amount of innovation funding is available both from Government, and through the network companies’ innovation allowance.  The network companies are tasked with developing a wider strategy for network innovation by the end of 2017.  We will review the critical path of innovation that the electricity storage sector needs to follow, and ask whether the support available is adequate for this.  The discussion will be of interest both to the wider industry and to those looking for innovation funding.


  • Life-cycle credentials:

As more electricity storage is deployed, we need to consider the life-cycle credentials of the technologies.  How are the materials sourced?  How are they used?  Can they be recycled?  How are they disposed of?  What are the prospects for the future with increasing amounts of deployment and ultimate retirement of assets?  Fundamentally, is the industry sustainable from the perspective of environment and raw resource, and what further good practice, standards and regulations, are needed?  The discussion will be of interest to all those involved in the electricity storage supply chain or undertaking due diligence on the development of electricity storage projects.


Confirmed speakers from: S&C, UPKN, Moixa, Yuasa, BEIS, DEFRA.


Join us!

Click to view the Programme, or Register through our website.  Only £25.00 (plus VAT) for ESN members.

If you need further information please contact Aud Heyden on 01666 840948 or email:


Other Events of interest:


Register for the Wind & Solar Energy Storage Advancements event and receive a 15% discount.  Contact Aud Heyden for further details: 01666 840948.


















Interaction between CfD support for renewable schemes – conference call – Tuesday 6th June – 11 a.m.


We have scheduled a conference phone call to discuss the interaction between CfD support for renewables schemes and electricity storage.  BEIS are looking at current arrangements and are keen to hear our thoughts.  We expect them to make recommendations to new Ministers in due course.  The call will take place at 11am Tuesday 6th June


ESN Event 4th July:  Innovation and Life-Cycle – Afternoon meeting - London


Further to our “save the date” for 4th of July, we are delighted to confirm the theme of our next issue-busting event as “Innovation and Life-Cycle.”  We will be discussing what kinds of innovation the industry needs to see, and the support available for this from BEIS, Ofgem, and elsewhere.  We will also be discussing the life-cycle impact of storage technologies, and what safeguards are needed to ensure volume deployment happens in a sustainable manner.  Details will be announced on our website shortly.  If any members have a specific contribution, on the basis of expertise or experience, that they would like to make at this event, please contact


National Grid’s System Needs and Product Strategy


We had suggested to members that National Grid’s System Needs and Product Strategy would be released this week.  National Grid have informed us that, given sensitivities around wider energy policy, they plan to release the document in mid-June, after the election.  We will keep you informed.  Members are also encouraged to monitor National Grid’s Balancing Services webpage for further updates.




We are delighted to announce the arrival of Glynis Moss as ESN’s new Marketing Executive.  Glynis will be supporting the ESN and members at this time of rapid growth, with communications, event management, website, and social media.  Glynis can be contacted at the ESN by email at or 01666 841262.


Membership Renewal                                                       


Our membership year starts on 1st July 2017.  Last year (2016/20217) was a very successful year for the ESN and for electricity storage, but there is more work to do to ensure that storage and smart grids stay on the Government’s agenda, and indeed, to ensure that these are seen as high-priority items as the Government develops the UK’s position in the wider world.  We will also continue to work with the network companies to ensure that the ongoing development of procurement arrangements are as open to storage solutions as possible.  ESN’s work relies on member support – please could we ask members to look out for the membership renewal letter and help with prompt payment.


Pre-Election Updates


We do not expect further policy or regulatory announcements in advance of the general election on 8th June.  But rest assured, ESN continues to liaise with officials to emphasise the need to maintain momentum on smart systems once the election period is over.


Longer Duration Storage – Hours To Days Event – 4th May


The current expansion in deployment of storage has been driven mostly by technology installations with short-duration energy storage capacity. The Electricity Storage Network seminar held at the Institution of Mechanical Engineers in London, on May 4th considered the development of Longer Duration Storage in order to bring attention to all aspects of electricity storage within the energy industry. 


Storage assets are beginning to be installed now, and commercial and regulatory frameworks being considered, that are likely to persist into the 2020s. It is therefore important that these be developed with a view to longer-duration service needs. The seminar, with presentations, panel sessions, and active audience discussion, considered the volumes and timescales over which longer-duration storage may be needed; current regulatory and market arrangements for deployment of longer-duration storage; and the prospects for the future regulatory and market landscape


The Chairman, Anthony Price, introduced the emerging need for longer‑duration storage and the challenges ahead and posed two Questions:


  •          With a likely move to Longer Duration Storage, will the predicated “commercial and regulatory changes” anticipated by summer 2017 be fit for purpose or are they are already out of date?
  •          Do we need to prepare for investment in longer duration electricity storage?


We were fortunate to secure Professor Goran Strbac as one of our opening speakers.  His team at Imperial College, London have considerable experience and capability in scenario planning and their work confirmed that with a high penetration of renewable generation, the network must be flexible and responsive. It was then demonstrated that the UK’s Low Carbon targets can be achieved by using storage; and significant benefits can be realised with Wind and Storage. However, if storage is merely short duration, it will not solve the overall capacity problem, the UK will need storage installations with many hours of energy storage capacity. 


The market pull for longer duration storage is emerging.  Ed Kenny Herbert of RES provided examples of business modelling for combined storage and renewable generation projects, where storage could improved the certainty of forecasting generation and so improve dispatchability.  Storage of several hours duration was required.  Marek Kubik of AES also proposed that, in the long run, increasing storage capacity for a project would lower costs, even when taking into account the higher costs of the initial investment.   Highview Power Systems and REDT represented by Fernando Morales and Scott McGregor respectively both commented on the need to build in future proofing the income stream of any storage asset.  Fernando commented on how projects in the USA had found themselves uneconomic as they were unable to provide services in ancillary services markets following minor rule changes.  Delegates to the meeting were absorbed the need to protect investments in storage by planning for change – and the inevitable debate and discussion on certainty of future income streams and the need for long term commitments for income against higher value for shorter term contracts was lively and informative.


Andrew White from Ofgem recognised the key challenges to energy storage in the UK and explained the likely timetable for implementation of regulatory changes.  Paul Lowbridge of National Grid, speaking on the behalf of the SO, said that the SO want to see a greater role for Energy Storage, Demand Side Management operating with wind & solar generation. They too want to see storage enjoy a level playing field with other energy sources and services. Their aim is to revise and simplify balancing services regulations and introduce appropriate and fair pricing signals and mechanisms, whilst promoting the stacking of ancillary and balancing services.


Sotiris Georgiopoulos of UKPN provided a preview of the tender process for “flexible products” (including services from energy storage) and an industry-wide consultation will begin in May 2017.  The commercial side was not forgotten and Rory McCarthy of Origami Energy brought the themes together by addressing the needs for co-ordination of services.


There was much discussion from the floor and the salient points included…


  •          Li-ion appears to be dominating for high-power, short duration ancillary services. How can other technologies, (NAS, Cu-Zn, compressed-air, liquid-air, flow cells and hybrids break through?
  •          Investors should be educated as to the potentially lucrative revenue streams from energy storage.
  •          Longer contracts are preferable to give investors more appetite, certainty and investment protection.
  •          More clarity from government. Policy and Mechanisms should address barriers and enable storage.
  •          Consistency required regarding trading conditions, (generator definition/ownership, CfDs, ROCs, PPA).
  •          It is commercially desirable to be able to stack ancillary and balancing services.
  •          BEIS, National Grid and Ofgem have acknowledged all the above and are working towards solutions.


The Electricity Storage Network (ESN) is dedicated to electricity storage with eight years of policy and regulatory work.  It is keen to promote all technologies, scales and durations of electricity storage. We enjoyed a high level of discussion in an open and friendly format.  Summarising the meeting on behalf of the ESN, Zoltan Zavody recognised that BEIS/Nat-Grid/Ofgem have acknowledged the key challenges and are in the process of addressing them.  Zoltan confirmed that longer duration storage is an important part of the storage agenda and the ESN looks forward to working more with our members and other interested stakeholders as we move into the next big phase for storage!


Member’s Discussion


At ESN’s members’ discussion a couple of weeks ago, we discussed the services we offer to our members.  We are reviewing the outcomes of this discussion, including involvement of our members in policy influencing activities, the information we provide on our website, content of newsletters, and running of events.  Please feel free to offer feedback on these or any other services you would like to see from the ESN.  Contact


ETYS Consultation – deadline today!


National Grid have issued a reminder to respond to the consultation on their annual Electricity Ten-Year Statement (ETYS).  This is an important and information-packed document for the electricity industry, highlighting network development needs and opportunities, for example network availability and the need for grid reinforcements.  However, it is also an extensive document with which storage providers may still be unfamiliar.  ESN proposes simply to ask for the ETYS to highlight in more detail the technical opportunities for storage solutions.  If you would like to offer further comment, please contact by today, Thursday 18th May.


NOA Consultation


National Grid is also consulting on its Network Options Assessment document, the deadline for which is 23rd June.  This is a more specific document than the ETYS, and again ESN intends to ask for the document to highlight where transmission connected electricity storage could play a role on the system.  We believe this would facilitate engagement by new market players.  Furthermore, we would request greater clarity on where it would be the TO and where it would be the SO procuring storage solutions.  We encourage members to review the NOA and let us have your thoughts.  Contact


WPD Consultation


WPD, responsible for the distribution network from the south-west of England to South Wales to the East Midlands, have issued a consultation on prospects for deployment of energy storage (sic).  The consultation, deadline 21st June, asks in particular about the potential scale of growth of energy storage within WPD’s distribution network; the types of energy storage assets/projects; and their typical operating.  Members may like to respond directly, or may like ESN to respond on a more generalised basis on their behalf.  Please contact with your thoughts.


Nuggets from Longer-Duration Storage Event


ESN ran an issue-busting event on longer-duration storage last week.  We thank all those who actively participated and supported.  Slides will be made available shortly, in the meantime some nuggets as follows:


  •          UKPN flexibility tender to be issued within weeks, focusing on import constraints, with a requirement of up to 3 hours.
  •          National Grid Products and Services Strategy will set out the simplified products sought under Power Responsive.  Hot news:  Date of publication set for 23rd May 2017.
  •          3-4 hour batteries could cost efficiently help smooth the output of individual windfarms.
  •          Is there a need for further regulatory assurance or equity investor education to allow the development of larger, 24-hour duration facilities?


The event was preceded by a members’ only discussion, and we will be using this to inform how we develop the service to our members over the coming weeks.  Thank you to all participants.


Date for diary:  The date for ESN’s next issue-busting event is provisionally set for 4th July!


Members’ Call on Storage and CfD


We would like to arrange a teleconference with members on developments regarding the CfD (Contracts for Difference) regulations, as applied to renewables facilities associated with storage.  BEIS are looking to implement their decisions from their recent consultation (see page 19 from the consultation and page 15 from the consultation outcome), and they are looking to the ESN for ongoing input.  The key questions are around storage a) behind the meter and b) “parallel” to the plant.  The teleconference would take place on the morning of Friday 19th May or Monday 22nd May.  Please contact if you would like to take part.


DG/DNO Steering Group


ESN has been asked to provide representation on the DG/DNO Steering Group, which was set up to look at the practical issues around getting connected to the distribution system, originally by generators.  This is the opportunity to discuss issues such as: information availability on grid capacity, management of the grid queue, the detail of connection agreements, etc.  If you feel you could represent the wider cause of electricity storage connectees on this group, please contact


TSO/DSO Advisory Group


The slides from the DSO/TSO Advisory Group discussion are now available here.  ESN is representing the electricity storage perspective on the Advisory Group and we will be looking to our members for input.  This is a high-profile, strategic project with a range of ongoing deliverables, a provisional schedule for which can be found here at slide 21.  We encourage members to take a look and let us know if you would like to participate in discussion of the draft outputs from any of the workstreams as these emerge.  Contact


Smart Power Alliance


ESN is an active member of the newly formed Smart Power Alliance, a collaboration between the key associations involved in the smart power sector.  The Alliance is working to ensure that smart power maintains priority and momentum on the policy agenda; and that it is seen as an opportunity for growth and exports as the UK develops its position in the world.  Alliance meetings take place about once a quarter and are open to guests.  Contact if you would like to participate.


Capacity Market Response


With thanks to all those that participated in the members’ teleconference, ESN has responded to Ofgem’s consultation on the Capacity Market Rules.  Our key points were: the need for clarification for the rationale for over-delivery; the need for a full analysis of stress event needs before considering de-rating on the basis of duration; agreement to include all EFR-type services to the SO as a “Relevant Balancing Service;” and the need to allow pre-qualification of plant even without planning permission.  Our full response can be found here.


Network Charging: Targeted Charging Review


With thanks to those that participated in the members’ teleconference, ESN has responded to Ofgem’s consultation the Targeted Charging Review.  ESN has supported the removal of the demand residual for storage imports at peak demand, given that in its capacity as a “generator,” the facility is already paying the sunk costs of the grid asset.  ESN has stressed that the benefit of this change is minor compared with the reduction of embedded benefit by some £43/kW of capacity.  The ESN response can be found here.


Solar Trade Association Masterclass


Reminder that the STA are running a “PV Financing and PPA Masterclass” on 16th May 2017.  The event will discuss the financing of storage/solar projects, as well as wider issues around the financing of solar.  See here for details.



Upcoming DNO Flexibility Tender

UKPN, DNO for the South-East and valued ESN member, have indicated their intention to issue their tender for flexibility services before the summer.  We are told the services will include the need for longer-duration electricity storage, i.e: beyond half-hour discharge.  UKPN will be speaking about their tender process, the relevance of longer-duration storage, and the co-ordination of flexibility services at ESN’s Longer-Duration Storage event next week (see below).

Longer-Duration Storage Event

We will be discussing the physical need for longer-duration storage over the coming years; current market opportunities for longer-duration storage including UKPN’s upcoming flexibility tender; and prospects for future regulatory and commercial frameworks.  With contributions from Ofgem, National Grid, and a range of industry parties, we encourage readers to sign up.  £50 for ESN members!

ESN Member’s Strategy Discussion

A reminder that ESN members are invited to a morning discussion on 4th May, before our long-duration event, for an update on ESN developments, policy priorities, and services requested by ESN members. This discussion is free and exclusive to members, and we look forward to hearing your views and feedback.  Sign up here.

Network Charging

ESN attended Ofgem’s consultation event on the Targeted Charging Review (TCR) which aims to address the “double charging” issue for storage facilities importing at peak (for example, frequency services), though this does not compensate for the loss of embedded benefit for those that export.  The debate centred around the role of the “residual charge” in ensuring that the correct amount is collected to fund the transmission network, without overly distorting the forward-looking / locational element of the charge for network usage.  Ofgem revealed there is little prospect of the residual charge being significantly lowered.  A wider charging review is planned for later in the year.

Network charges are a complex but material aspect of the business case for many storage projects, and carry regulatory risk.  We encourage members to monitor developments.  Contact if you would like to be more involved.

TSO/DSO, Transmission/Distribution Interface

ESN attended the first meeting of ENA’s DSO/TSO Project Advisory Group.  The ambitious project is looking to move work forward on four areas: the T/D interface; the customer journey; the DNO-DSO transition; and network charging.  A key discussion was around categorisation of the emerging customer base, for instance passive connectees vs active service providers, and by implication, how each should be treated.  Slides will be circulated once available.  If you would like to support the ESN with commenting on the more detailed materials, please contact

Capacity Market Rules Teleconference

Our teleconference on Ofgem’s consultation on changes to the Capacity Market rules takes place 11am Tuesday 2nd May.  Thank you to those that have registered.  For those that would still like to, please contact

Solar Trade Association Masterclass

The STA are running a “PV Financing and PPA Masterclass” on 16th May 2017.  The event will discuss the financing of storage/solar projects, as well as wider issues around the financing of solar.  See here for details.

General Election, Industrial Strategy

Tuesday’s announcement by the Prime Minister of a General Election came as a surprise to most of us.  The ESN will be working with other associations in the smart energy sphere to help keep sensible energy policy on the agenda, including the BEIS/Ofgem Spring Plan for Smart and Flexible Energy.  We will argue, General Election notwithstanding, that this should still be published before summer.

The ESN last week submitted our response to BEIS’s Industrial Strategy, as well as a joint letter with key renewables associations.  We have emphasised that deployment of storage as part of a smart strategy both helps with the energy costs and therefore the competitiveness of UK industry; and secures the development of competitive smart systems products and services for export by UK businesses into international markets.

Long-Duration Storage Event

We are pleased to confirm speakers from National Grid and UKPN, as well as a variety of industry players, at this discussion-packed event.  Please do sign up early and support the ESN if you are planning to attend.  £50 to ESN members!

ESN Member’s Strategy Discussion

ESN members are invited to a morning discussion on 4th May, before our long-duration event, for an update on ESN developments, policy priorities, and services requested by ESN members. This discussion is free and exclusive to members, and we look forward to hearing your views and feedback.  Sign up here.

Network Charging

The ESN has responded to Ofgem’s consultation on embedded benefits, which proposes a massive reduction in the embedded benefit offered to Our response sets out our concern around the impact on security of supply, visibility by the System Operator, locationally appropriate deployment of viable storage projects.  This is a material issue, contact with any further insights.

The ESN will also respond to the Targeted Charging Review, which aims to address the “double charging” issue for storage facilities importing at peak (for example, frequency services), but does not compensate for the loss of embedded benefit for those that export.  Ofgem is running a consultation event in the afternoon of 26th April 2017, and we encourage members to attend.  We are in the meantime grateful for further member input.  Contact

For enthusiasts, slides from last week’s National Grid’s Transmission Charging Methodologies Forum (TCMF) offer  a helpful summary of the elements of network charging to be addressed by various views (see 13th April 2017 TCMF slidepack Targeted Charging Review, slides 5-6).

TSO/DSO, Transmission/Distribution Interface

The ESN will be representing the electricity storage community next week at ENA’s DSO/TSO Project Advisory Group, which will look at: the transmission/distribution interface (for example the provision of TSO services by DNO connectees); the transformation of DNO to DSO; and transmission / distribution network charging issues.  Contact 26th April if you would like to raise items for these discussions.  We will report back in future newsletters.

Capacity Market Rules Teleconference

We would like to arrange a teleconference on Ofgem’s consultation on changes to the Capacity Market rules.  The changes seem to have material significance for electricity storage, notably: amendment to the charging calculation for over-delivery; de-rating of storage capacity to represent availability; and classing EFR as a “Relevant Balancing Service.”  The teleconference would take place on Tuesday 2nd or Wednesday 3rd May.  Please contact if you would like to participate.

Utilisation of Spare Grid Capacity

The ESN will be taking part in a National Grid workshop on the release of spare transmission capacity, notably near renewables plant, for the connection of storage (and other facilities).  We would welcome interest from storage providers and their agents who may be looking to take advantage of this opportunity and would like to participate in associated discussions.

We would also welcome input on the interaction between RO / CfD renewables plant and storage.  Contact, and please note that this issue will also be touched on at the ESN’s Longer-Duration Storage event on 4th May.

Long-Term Storage Event

Will there be a need for longer-duration (hours-days) electricity storage in future?  Do current arrangements cater for the deployment of facilities now that can offer longer-duration storage later?  What insights can we draw for the future regulatory and market framework for storage?  Sign up today, £50 to ESN members! 

ESN Member’s Strategy Discussion

ESN members are invited to a morning discussion on 4th May, before our long-duration event, for an update on ESN developments, policy priorities, and services requested by ESN members. This discussion is free and exclusive to members. 

Network Charging

ESN held a teleconference with members, kindly supported by National Grid, on the Ofgem consultations on embedded benefits (in particular withdrawal of the rebate on the Transmission Demand Residual for peak exports); and on the Targeted Charging Review (in particular withdrawal of the payment of the Transmission Demand Residual for peak imports, together with removal of double-charging of BSUoS).  These reviews are developments with potentially significant impacts on the storage industry and we would be keen to hear from all potentially affected parties.

Our proposed response centres around the processes for these reviews.  In particular, the embedded benefits review seems to have been completed without wider consideration, for example of the impact of storage being pushed behind the meter.  Likewise, while we welcome the Targeted Charging Review, we are seeking assurance that there will not be a hiatus in the charging regime for storage, especially when industry governance for network charges is dominated by generators.  Contact urgently if you have any final thoughts to input.

Utilisation of Spare Grid Capacity

ESN is speaking to officials and National Grid about the potential to free up spare transmission capacity for the connection of storage (and other facilities) near renewables plant, particularly RO recipients.  A workshop will be run in mid-May, and we would welcome interest from storage providers and their agents who may be looking to take advantage of this opportunity.  Contact

Power Responsive

National Grid have released an account of their recent Working Groups on Storage and on Demand-Side Response [note link not yet working at time of production of this newsletter].  The storage community is looking forward to seeing the imminent follow-up to the System Operability Framework 2016, in which we should see more detailed information on the products and services National Grid are proposing to bring forward.

Developments in Grid Code Governance

The Governance of the Grid Code has been drastically changed, and now allows wider parties to propose amendments to technical requirements on transmission connectees.  In particular, any potential user of the system can submit a proposal for a Grid Code amendment.  This should prove very helpful for members who are developing new technologies with as yet unknown capabilities and impacts on the Grid.

Long-Term Storage Event

ESN continues to push for more policy and regulatory attention on the issue of long-duration storage.  – What market framework and investment signals do we need for balancing our electricity over a period of hours or days, and is there scope for assets installed today to meet these needs?  Save the date for an ESN members’ event on long-duration storage, Thursday 4th May.

ESN member AES are co-organising a free webinar on the value of >20 minute energy storage.  This will take place at 4pm (UK time) Tuesday 4th April.  (Click on the link and “add event to your calendar” to register.)

Network Charging

ESN continues to seek member input on Ofgem’s proposal to reduce the rebate on the network charge rebate (TNUoS Demand Residual) payable to   For storage facilities in export mode during Triad periods (typically cold winter evenings), the lost revenue would amount to £43 per year per kW of capacity, or £43,000/yr/MW.  We encourage members to turn to Appendix 4 (pages 93-95), and review whether the changes are a material concern and whether Ofgem’s proposals are justified.  Contact

Please also contact if you would like to participate in a teleconference on these proposals and on the targeted charging review.  The teleconference would be held on 10th or 11th April.

Grid Code Webinar

The Governance of the Grid Code has been drastically changed, and now allows wider parties to propose amendments to technical requirements on transmission connectees.  This may be a helpful development for storage providers who have not generally been involved in Grid Code discussions.  National Grid's Market Change team will be hosting a webinar 2-3pm Tuesday 4th April 2017 to explain the governance modifications.  Contact for joining instructions.

Storage and the CfD regime

ESN is reviewing how storage can add value to or benefit from CfD (Contracts for Difference) plant.  – What is the incentive on CfD plant to invest in storage solutions, how might storage facilities share CfD plant grid capacity, etc.?  Please let us know if this is an area of interest as we engage with Government and regulator officials.  Contact

DSO/TSO Advisory Group

ESN has been granted a place on ENA’s DSO/TSO Project Advisory Group, which will look at: the transmission/distribution interface (for example the provision of TSO services by DNO connectees); the transformation of DNO to DSO; and transmission/distribution network charging issues.  We will be reporting back to members, and please note we will be looking to members to inform these discussions.

Vehicle to Grid

InnovateUK are inviting UK innovators to participate in a V2G conference in Amsterdam on 11th-12th May 2017.  InnovateUK are looking for parties who are active in vehicle-to-grid (V2G) projects and interested in the V2G supply chain.  They are kindly offering to cover the cost of participation.  Register interest here by Wednesday 5th April.

Industrial Strategy Roundtable

ESN attended a roundtable at BEIS on UK Government’s consultation “Building Our Industrial Strategy,” released in January.  Anthony?


Capacity Market Rules for Storage
Ofgem has released a consultation on changes to the Capacity Market rules.  These changes seem to have material significance for electricity storage, notably: amendment to the parameters for charging in the calculation for over-delivery; de-rating of storage capacity to represent availability; and classing Enhanced Frequency Response as a “Relevant Balancing Service.”  Contact if you would like to inform ESN’s response on these or other proposals.  Note Ofgem is holding a stakeholder workshop on the morning of 28th April. 
Network Charging
ESN is concerned about Ofgem’s proposal to reduce the rebate on the TNUoS Demand Residual to

Vehicle to Grid
Slides from last month’s Knowledge Transfer Network event on V2G (Vehicle to Grid) developments can be found here.  Electric vehicles already represent of the order of GWs of power on the roads of the UK, and the ESN is monitoring with interest the relative merits and functionality of stationary vs mobile electricity storage.
Industrial Strategy
The BEIS consultation “Building Our Industrial Strategy,” released in January, encourages industry to follow the approach of the automotive (clean vehicle) and aerospace industries, and asks for industry “to come to the Government with proposals to transform and upgrade their sector through Sector Deals … for boosting [the] productivity.”  ESN will be attending a roundtable with BEIS to represent the electricity storage sector.  Contact by Thursday 30th March if you would like to contribute to the ESN position.   

**Reminder - Demonstration of low carbon technologies
The ESN has been asked to suggest nominations for individuals to meet European Commission staff at a meeting to discuss requirements to make energy storage projects financially viable.  We are looking for representatives from our member companies who have personal experience of project development, those with general experience are unlikely to be selected.  The meeting will be used to shape the spending plans for future low carbon demonstration projects, including storage, amounting to a total of 500 million euro. 
The meeting will be in Brussels in early April.  Please contact the ESN office ( as soon as possible if you are interested and able to help.

Power Responsive
At their Power Responsive Working Group in London last Monday, National Grid set out their thinking on the future of service procurement (see slides 4 and 26 for helpful timelines).  A preview of the services to be requested is very helpfully provided in slides 7-13.
The session included questions around “single-market” vs “standardised” tenders/auctions (slides 9-21) and around short vs long-term contracts.  ESN supported the case for stacking of services in one bid; and for an element of long-term contracting where this had the potential to be in the consumer interest (for example, facilitating the market in more cost-effective service providers). National Grid proposes to consult formally on its “System Needs and Product Strategy” in April.
European Storage Roadmap
The European Association for the Storage of Energy (EASE) ran a consultation event on their European Roadmap for Storage Technology Development.  The final Roadmap will be published in spring, and ESN supported calls not just for adequate R&D funding, but also for liquid markets to help draw the technologies into commercial use.  ESN also emphasised the need for well-documented demonstration projects looking at both technology performance and the workability of the commercial arrangements. The European Roadmap parallels work in the UK, and ESN is working to ensure mutual learnings.
Parallel Metering for Freeing up Grid Capacity
ESN, kindly represented by Highview Power Storage, supported a discussion with National Grid and the renewable industry on the effective utilisation of spare transmission capacity, for example with variable renewables generation.  The proposition is for storage or other facilities to connect through a “parallel metering” arrangement. 

ESN will keep members informed as these discussions progress.  Contact if such arrangements may be of interest to you.
Demonstration of low carbon technologies
The ESN has been asked to suggest nominations for individuals to meet European Commission staff at a meeting to discuss requirements to make energy storage projects financially viable.  We are looking for representatives from our member companies who have personal experience of project development, those with general experience are unlikely to be selected.  The meeting will be used to shape the spending plans for future  low carbon demonstration projects, including storage, amounting to a total of 500 million euro. The meeting will be in brussels in early April.  Please contact the ESN office (  ) as soon as possible if you are interested and able to help.

European National Energy Storage Associations (ENESA), Dusseldorf

ESN staff attended the European staff meeting in Dusseldorf to receive an up to date briefing on energy storage in Europe from Patrick Clerens, Secretary General at Ease.  The discussion included further details on the winter package and up date on Ease’s European activities.  Further details to follow in a future newsletter. 

Ofgem Targeted Charging Review is Out!

The much anticipated “Targeted Charging Review” has been released by Ofgem.  ESN has been making the case that electricity storage should not be charged double for using the network (as generation and as demand); and that withdrawal of embedded benefits should not leave electricity storage projects hanging.  At first glance Ofgem’s review looks promising, suggesting that electricity storage a) should not pay demand residual charges for either distribution or transmission; and b) should pay reduced demand and generation BSUoS charges.  In addition, Ofgem are proposing a review of wider elements of network charging.  ESN plans to respond to this consultation, and we welcome members’ input.  Contact if you would like to comment.

Power Responsive
ESN is discussing with National Grid’s Power Responsive team the metrics for monitoring progress on deployment of storage for a range of network services.  What would represent “success” for the storage industry?  - % utilisation of existing assets, or % growth in the MWh market, or % of the range of services provided, etc.?  Contact with any thoughts.  ESN is also facilitating a table at the next Power Responsive Storage Working Group.
System Operator Consultations
ESN has responded to Ofgem’s two consultations on the System Operator.  We have emphasised the need for the regulatory incentive on the System Operator (SO) to be on whole-system costs, including those of connectees, not just the SO’s own costs.  The SO incentive should include facilitating the development of sustainable markets for services where these have the potential to be in the interest of the consumer.  We support coordination of service procurement by the SO and other parties, notably DNOs, while noting that one indicator of sustainable markets is competition and plurality both among service providers and service procurers.  These changes should aid the cause of electricity storage providers.  Ofgem proposes separation of TO and SO by April 2019.
ESN is liaising with the Energy Networks Association on the representation of storage on the high-profile TSO-DSO Project, which is looking at: issues with the T/D interface; the customer journey for storage connections; charging for storage; and the transition to DSO.  Please contact if you would like to input into these areas of work.

System Operator
ESN participated in an Ofgem run workshop on the two consultations by Ofgem on greater separation of the System Operator.  We are now finalising our response, in which we endorse the need for the System Operator to facilitate wider markets for service tools in the long-term.  We also support the need for clarity in whether storage service contracts are with the SO, TO, or DNO.  We would welcome examples from members of situations where confusion may arise.  Contact
Transmission Constraints Licence Condition
ESN has responded to Ofgem’s consultation on a new, lasting Transmission Constraints Licence Condition (TCLC).  We have emphasised our support for fair markets and avoidance of abuse of market power, while also noting that Ofgem do not seem to have considered the role of storage in constrained parts of the transmission network, and the variety of grid configurations in which storage may be deployed.  We propose to consider these issues further with Ofgem.  Please contact if you would like to input.
Energy Storage Summit
ESN presented at the Energy Storage Summit, alongside Imperial College and Ofgem.  We emphasised the need for urgency in resolving the short-term barriers to energy storage.  We also emphasised the need to start considering the need for long-duration storage in the context of the emerging need for energy arbitrage and energy balancing as we approach the end of this decade and the start of the next.  Look out for further ESN activity in this space!

Embedded benefits review by OFGEM
OFGEM issued their approach to a review of embedded benefits this week.  This is a complex area, and the impact of OFGEM’s notice will affect all those who connect generation or storage to the distribution networks.  Some of our colleagues have already given their views of the implications of the notices from OFGEM.  The next step is that OFGEM will be consulting on their approach before issuing their final decision. In short, the proposal from OFGEM is to reduce the value of embedded benefits from about £45 / kW / pa to £2 /kW / pa.
Those of us who are interested in developing storage projects will realise that if the proposals are implemented, then storage projects which rely on exporting to the network during peak times, in order to reduce TNUOS charges and receive a credit from their electricity supplier are now likely to have a dent in their business plan. 
The ESN will submit a response to OFGEM in April.  If you have views on this topic, please send them to 


In relation to ESN's response to BEIS and Ofgem's Call for Evidence - 'A Smart and Flexible Energy System' in January the ESN has submitted the following papers:


One of the things the Electricity Storage Network Symposium next week will achieve is a clear plan on how to get enough recognition of the benefits of storage for the network as well as individual users

Storage should be a system asset. If you don't have a means of implementing a strategy for storage, it is likely you're going to end up with unintended consequences such as stranded assets, with nasty implications for the system.

If you look at the support given to put solar PV on peoples' roofs, it's great that we've got the market going, but the result is that we have clusters where there's a surplus of generation at peak times during the day. If we had real-time pricing we'd be seeing real negative prices at around lunchtime with difficulties of controlling the network at a huge additional cost to local network operators. If you prevent the network operator from putting in storage, who's going to put in storage to take advantage of the local generation peak? Because it won't necessarily be solved by plants that are providing enhanced frequency response. We need different types of storage to do different things.

The ESN and its members have a key role to play in getting recognition of all the benefits of storage to the UK economy, security of supply and to end-user bills.  Many of the sessions at the Electricity Storage Network Symposium will focus not just on the technological challenges that have to be overcome but the economic and communications issues that are also important to ensure electricity storage plays its proper role in the UK grid at all levels.


DNO a major storage problem

The question of DNO ownership of storage assets was a major issue in the recent BEIS/Ofgem consultation, and is set to be a considerable factor in shaping the future of our energy system. Here at  ESN we want to deal with this question head on, and hope to debate this further with over 100 other delegates at our Symposium event later this month.

In the UK, as with many major world markets, distribution network operators (DNOs), are prohibited from owning storage assets. The argument against the network operating storage is that they would then be involved in buying and selling electricity, counter to their distribution license and generate a risk that the market will be open to undue manipulation. This is a little bit of a red herring because everything that a network operator does concerns the movement of electricity – they’re trying to operate their network at the lowest cost.  Something that must do as a condition of their license. They need to offer best value to their customers so if by putting storage in they can lower the whole cost of operating the network, surely that’s something they should do.

 There seems to be an argument that says, the network operator shouldn’t be allowed to do that because they have access to low-cost capital, preferential planning rights and so can have “unfair” advantages over third party developers. If the storage ownership restrictions do give third party developers an advantage or at worst a level playing field, we should be seeing a boom in private storage projects being developed rather than the current trickle of test sites and pilot schemes.

DNOs should not be the only parties allowed to put in storage, nor will they put in the majority of storage but they should be able to put in storage as part of a sensible, sustainable and efficient network management strategy.

The DNO prohibition given the lack of third part investment is stopping the development of electricity storage solutions. I only hope that we don’t live to regret it in 10 or 20 years’ time when we go through the next iteration of market rules.

I’m looking forward to debating the relative metrics of storage ownership regulations at the Electricity Storage Network Symposium on 25 January.


A licence to grow – the need for clear definitions in the electricity storage market

Here at the Electricity Storage Network we are about to press send on our response to Ofgem and BEIS’ Call for Evidence. The Call for Evidence is expected to inform policy on everything from time-of-use electricity pricing to EV chargers on the network.

We have for several years been calling loudly for acceleration in storage deployment in the UK, advocating for 2,000MW by 2020. We feel that this level of deployment is not only desirable but also perfectly achievable if the Government makes the right policy decisions. 

Some progress looks to be being made in providing clarity in the regulation and definition of storage, following ESN’s prompting.  BEIS and Ofgem are asking for evidence for and against licensing, using our license proposal or our definition as a basis for the changes to legislation and regulation. A properly constructed licensing regime will provide a clearer pathway for electricity storage to be defined as its own asset class. That won’t be a panacea as all it does it provide a clear definition. But it is an important initial step – and the first step is always the most difficult.

Given the implications of definition storage and where it sits in the industry value-chain, only a licence will provide the needed clarity for the investment in storage to ramp-up. Storage has huge implications for so many different parts of the energy sector - planning, business rates, operation and connection agreements are just a few of the most obvious ones.

We hope this Call for Evidence by BEIS and OFGEM, will be the start of a major, and quick, agreement on defining and licensing the electricity storage sector. Although it’s taken a long time for the baby to be delivered, the baby’s going to grow up very quickly. That’s our hope and our message to the teams at BEIS and Ofgem is that the ESN is here to help them through on this transition.

Let’s cautiously rejoice – three years ago we didn’t have a storage team at DECC or Ofgem. Those teams are now in place because we asked for them and ministers and senior civil servants recognised the need for them. Everything is getting lined up to make it a good exciting future for electricity storage!

The Electricity Storage Network’s Annual Symposium will be hearing more form Government representatives and debating with them the best policy for storage in the UK. 


We ain’t seen nothing yet!

It’s traditional at this time of year to both reflect on the past year and look forward to the year ahead.

I think 2016 will go down as a good year for electricity storage. At ESN, our membership has grown to over 150 representatives of electricity storage companies, research and development organisations, and academic institutions. Our Symposium last January was another great success with a range of discussions, presentations and networking opportunities with delegates from across the industry including a keynote speech from the then-Energy Minister Amber Rudd. We have been invited to speak on multiple occasions to the Energy and Climate Change Committee, and have enjoyed spreading the message about the benefits of electricity storage alongside our members at a variety of events and conferences.

It wasn’t so long ago that electricity storage was seen as a mythical possibility but 2016 saw it transform into an essential viability. The 2016 NIC report, Energy and Climate Change Committee final report and the policy exchange report on storage all highlighted the vital role energy storage will have in future energy policy. These respected and robust reports also showed that energy storage does not need direct subsidies – a vital message with the need to solve the energy trilemma of developing sustainable, reliable and inexpensive electricity supply. Last year we welcomed the launch of a number of successful projects by our members, and the success for electricity storage in the recent Capacity Market auction (501MW batteries) and the EFR tender (201MW). 

Looking ahead, it is clear that the main barrier to electricity storage is policy, not technology. There is still a need to reform grid charging, develop a storage asset class, and remove the barriers to storage ownership by DNOs. The joint evidence gathering exercise announced by BEIS and OFGEM, closing in mid-January, does indicate that the UK Government is keen to hear from the industry on the best way to progress.

As well as building on 2016’s momentum, 2017 will be all about doing things differently. We are excited to see the sector evolve as new players will be entering the market on both a grid and community scale.

The UK has a huge opportunity with electricity storage. Deploying storage does not need a direct subsidy, it provides suitable employment for thousands, and enhances the competitiveness of UK PLCs by lowering costs. Passing up this opportunity will see the lights dimming in the UK, both literally and metaphorically.

The Electricity Storage Network will play a leading role in ensuring that these opportunities are exploited for the UK. How we’ll do this will be debated at our Annual Symposium on 25th January. 





BEIS/Ofgem 'A Smart, Flexible, Energy System' Consultation

The Electricity Storage Network is delighted that the Government and the energy regulator have launched their Call for Evidence on System Flexibility which covers the regulatory issues that impact on the successful deployment of electricity storage. .  The call for evidence recognises the barriers to electricity storage, including connection to the network, charges for use of the network, the absence of a definition in legislation and the role of final consumption levies on storage.  

Dr Jill Cainey said “It has been wonderful to have people specifically focusing on storage at both BEIS and Ofgem since early 2015 and they have an excellent grasp of the many complex issues that need to be resolved to ensure rapid deployment and the robust development of the UK electricity storage industry.”  As part of a BEIS industrial strategy, the UK has the potential to capture a large proportion of what is potentially a £280bn global market. 

“We particularly welcome the commitment to look at the legal definition of electricity storage which, without costing any money to the Exchequer or the taxpayer, could remove a major barrier to deployment.  It is essential that Government makes parliamentary time to see this through.”

The Call for Evidence comes at a time of intense interest in electricity storage, following the announcement in the summer of contracts for National Grid’s new enhanced frequency response service.  The call for evidence includes the Electricity Storage Network’s proposed definition for electricity storage  and the call for evidence acknowledges the support from industry for its definition.  The definition is needed to add clarity to development of electricity storage. The Electricity Storage Network initiated the call for a licence category for electricity storage in 2013. 

The Electricity Storage Network continues to press for a routemap to incorporate electricity storage as a mainstream component of our energy system.  This could save some £2.4bn off our energy costs by 2030.  The Electricity Storage Network encourages its members and those with a stake in the development of our energy system to provide evidence to BEIS and Ofgem and take advantage of this key opportunity to shape the delivery of a secure and low carbon electricity system for the UK.

The call for evidence is an important step towards the further development of storage, and the Electricity Storage Network will consult with its members as it prepares its response.  Members are invited to a special meeting on 6 December 2016 to consider these issues, Now that the call for evidence has been published, we will be able to confirm details soon.   The response to the call for evidence closes on 12 January 2017.  We look forward to BEIS and OFGEM taking prompt action to achieve an early resolution of these issues. 


BSI asks for comments on draft standard on safety for lithium ion batteries

The BSI needs comments on a draft international standard for safety requirements for lithium ion batteries for stationary applications. The draft ( reference DPC 16/30350625 DC ) is now available for public comment and we wanted to bring this to members' attention as it is extremely relevant to the current and future deployment of electrical energy storage.

The draft covers, inter alia, large energy storage - on grid/off grid for large scale Battery Energy Storage.  If the draft is approved, the standard will come into force at the date of publication and it will apply to all new batteries and battery installations of this type. In any case lithium ion cells/batteries used in stationary industrial applications should meet the safety requirements in IEC 62619.

The BSI needs to have comments by 21 December 2016, so please consider this draft carefully and assess its implications for your business. It will be relevant to you if you are installing or considering to install any form of battery storage using lithium ion batteries.   You can obtain a copy from the BSI.  Members may contact our office for a copy.  

We would encourage members to become involved with the work of the BSI, and the committee reviewing secondary batteries does need new members.




The EU’s draft “Winter Package” was released yesterday.  These packages are important for continuing to open up energy markets and secure access for all to the most affordable, sustainable, and secure forms of energy.


The Electricity Storage Network welcomes the Commission’s recognition in the Winter Package of the increasing importance of energy storage in the wider energy system.  The Package gives additional impetus to the BEIS/Ofgem call for evidence on “A Smart, Flexible, Energy System,” and the need to remove the regulatory and market barriers to storage such that it can participate in the energy and service markets (notably Capacity Mechanism and ancillary services) on an equal footing with generation and demand.


The measures explicitly include removal of discriminatory network charges (double-charging for demand and generation), and point also to the need to remove double-charging of consumption levies – two of ESN’s key requests to policymakers.


The measures from Brussels also set out the requirements and restrictions on network companies to own and operate assets.  ESN will work to ensure that these rules are interpreted in a way that ensure best value for the British consumer, by defining storage as a separate asset class.


A proposed EU “DSO Entity” will parallel the current ENTSO-E entity on transmission, to ensure that the role of distribution networks, including on storage, is developed in a coherent manner.


Regardless of future decisions around the UK’s role in Europe, the Electricity Storage Network will work together with our colleagues at the European Association for the Storage of Energy (EASE), to learn from experience in the EU and to input our own experience from the UK, to ensure that the policy framework for energy markets, including for storage, is sensible, fair, and robust. 


According to the National Infrastructure Commission, a smart energy system, including storage, could save the British consumer £3-£8bn a year by 2030, while the global market for storage is worth some £280bn.  We need to press on to ensure that UK consumers get a fair deal and that UK industry takes a leadership role on this agenda.


The press release is via this link.





Evidence provided to last session of ECC Committee

Jill Cainey appeared in front of the Energy and Climate Change (ECC) Select Committee on Tuesday 11th October to provide evidence on electricity storage.  This was the last session for the ECC committee as they are abolished on 17 October, with energy to be covered by the former BIS Select Committee.

Jill appeared with Barry Hatton of UK Power Networks, Nina Skorupska of the REA and Amanda Lyne of the UK Hydrogen and Fuel Cell Association.  The committee directly asked whether there should be a separate and new asset class for electricity storage and Barry and Jill said yes, while Nina said no and Amanda had no strong position.

Unsurprisingly, both Barry and Jill were strongly supportive of networks being able to own and operate electricity storage and the entire panel was not keen on a "target" for storage, but requested a clear strategy and that the joint Ofgem-BEIS Call for Evidence was issued as soon as possible. 

Click picture for the video:



Members secure 45 MW in EFR tender

RES and Belectric secured 4 year contracts for National Grid's new EFR Service, worth £18.85 million for at total of 45 MW (RES secured 35 MW and Belectric 10 MW).  Belectric plan to deliver their battery in October 2017, while RES hope to deliver their battery in February 2018.  Both bid just under £12 per MW.

37 companies, including other members, offered bids for 64 sites, ranging from £6.97/MW for 10 MW for delivery in December 2017 (Low Carbon Investment Company Ltd, with two successful bids at £9.38/MW for 40 MW and £.7.84/MW for 10 MW, both for delivery in December 2017) and £63.8/MW for 30 MW (BMU, not storage) for delivery in December 2016 from DRAX.  The average bid price was £21.7/MW, while the average price for successful bids was £9.78/MW.

Of the 64 sites, 2 were offering demand side response (3 %) and 20 were existing BMUs (31 %).  Storage represented 66 % of the projects bid, ranging from 1 MW to 49.9 MW.

While the price for the EFR Service was lower than many in the industry anticipated, this represents good value for he consumer with National Grid saying that the EFR Service will save £200 million in system balancing costs to the consumer.

We eagerly await deployment of the successful projects and hope that this is just the start of the role for electricity storage in delivering a sustainable and economic system.



AES to deploy 37.5 MW of Advancion® Energy Storage in USA


AES has entered into two contracts with San Diego Gas and Electric (SDG&E) to install and commission two energy storage arrays totaling 37.5 MW using its Advancion® energy storage solution at sites in San Diego County, California.  The SDG&E-owned energy storage arrays will help to improve regional reliability and integrate greater amounts of renewable energy when operational by the end of January 2017 - less than 5 months away.


The SDG&E Advancion arrays will be able to provide 37.5 MW of power for four continuous hours and serve as a 75 MW of flexible resource to the grid. The arrays will be installed at two SDG&E substation facilities: 30 MW in Escondido and 7.5 MW in El Cajon.  Once completed, the Escondido array will be the largest battery-based energy storage project in operation in the United States.  Both arrays will incorporate components from best-in-class Advancion certified suppliers, including batteries by Samsung SDI and power conversion systems by Parker Hannifin.



AES Kilroot Battery Wins Award

AES UK and Ireland was announced as the winner of the inaugural Energy Storage Award at the eleventh annual British Renewable Energy Awards for the Kilroot Advancion® Energy Storage Array. The 10 MW array, equivalent to 20 MW of flexible resource, was delivered to market in under a year, operates on a commercial basis and is the largest in the UK and Ireland. The award recognises AES’ leadership in advancing reliable energy storage technology in the UK and the role of storage as the missing piece to energy policy in the UK.

Express REA Awards 2016 001 web.jpg

“We are honoured to receive this award, recognising the role of AES energy storage in unlocking the value of existing UK investment in renewable energy,” said AES UK & Ireland President Carla Tully. “Advancion is proven and available to meet the needs of the rapidly changing energy market in the UK, supporting a low carbon economy and security of supply, without subsidy.”

Robin McCormick, General Manager of SONI explains how the Kilroot Battery Array is providing support for the Northern Ireland system operator: “In Northern Ireland we’ve had specific challenges as we’ve set ambitious targets for renewable energy and the market signals have delivered a lot of wind turbines on to our system. Because we’re an island system that creates technical challenges for us and obviously it’s a huge benefit for someone who’s trying to balance energy consumption and generation on a minute by minute basis to have some form of storage. We’ve enjoyed the journey with AES in terms of bringing this into a reality.”

Highview Power Limited - "Cool" Video

The new video animation explains how Liquid Air Energy Storage (LAES) technology works and its key benefits as Highview is preparing to start operating its new 5MW LAES technology Pre-Commercial Demonstrator, which is currently being commissioned in Greater Manchester. LAES is an innovative large scale, long duration energy storage solution which uses liquid air or liquid nitrogen as the storage medium to deliver between, 5MW to 200MWs+ of power for utility and distributed power systems.

In 2014, Highview and project partners, leading UK recycling and renewable energy company Viridor, were awarded more than £8 million from the UK Government Department of Energy & Climate Change (DECC) to build a LAES technology plant.

Highview’s LAES systems are made up of ‘off the shelf’ components from a well-established global supply chain, with thousands of hours of run time, resulting in a low technology risk and if integrated with renewables, LAES can help maintain green credentials, as it gives off no harmful emissions, uses no scarce materials and requires no complex recycling.

RES to deliver 20 MW of Rapid Frequency Response

RES and National Grid have signed a four year contract that will see RES provide 20MW of frequency response from battery storage.  RES and National Grid have been working together to develop this innovative service since 2014 and contributed to National Grid’s upcoming tender for 200MW of Enhanced Frequency Response.
The battery storage systems will be fully operational within 18 months and will provide cost effective dynamic frequency response to the grid within one second of the detection of a frequency deviation.
RES battery.jpg


A week for reports on electricity storage


Two reports this week provide convincing arguments in support of the need for electricity storage.  On Wednesday, The Carbon Trust published “Can storage help reduce the cost of a future UK electricity system”  which stresses the value of storage to the whole system.


On Friday, The National Infrastructure Commission published “Smart Power” setting out the priorities for the UK to develop its electricity infrastructure.  One third of the report is about electricity storage, setting a target `of 15 GW of new storage by 2030.


The ESN submitted evidence to the NIC’s enquiry and we provided live interviews  on BBC Radio Scotland’s Good Morning Scotland and BBC Radio 5’s Live Breakfast programme.




AES Launch 10 MW Battery at Kilroot

AES UK & Ireland today officially launched the AES Kilroot Advancion® Energy Storage Array along with Junior Ministers Jennifer McCann and Emma Pengelly from the Office of the First Minister and Deputy First Minister, along with 120 visitors from Northern Ireland, Great Britain, the Republic of Ireland, Europe and the United States. The event was followed by a tour with deputy First Minister Martin McGuinness.

Group photo AES Kilroot.jpg

Since 5 January 2016, the Array has been operating as a fully commercial project within the system operator’s existing Harmonised Ancillary Services system. Additionally, Innovate UK is providing Energy Catalyst funding for Queen’s University Belfast to investigate the full potential of energy storage to benefit the UK and Ireland electricity systems by analysing the impact of this array.




Jill Cainey gives evidence to the Energy and Climate Change Select Committee

 Dr Jill Cainey, Director of Electricity Storage Network, gave evidence to the Energy and Climate Change Select Committee on 12th January 2016 as part of the inquiry into connecting low carbon infrastructure and intermittency.



Dr Jill Cainey gives evidence to the Welsh Environment and Sustainability Committee

Dr Jill Cainey, the Director of the Electricity Storage Network, gave evidence to the Welsh National Assembly Environment and Sustainability Committee on 13 January 2016 as part of their inquiry into "A Smarter Energy Future for Wales".


AES Announces Completion of the UK’s Biggest Battery Energy Storage Array

Electricity Storage Network Sponsor Member, AES UK & Ireland, has announced the completion of the Kilroot Advancion® Energy Storage Array, located in Kilroot Power Station in Carrickfergus, Northern Ireland. The Array provides 10 megawatts (MW) of interconnected energy storage, equivalent to 20 MW of flexible resource, and is the largest advanced energy storage system in the United Kingdom and Ireland, and the only such system at transmission scale, supporting a reliable, low carbon electricity system for the Northern Ireland economy.

The Array utilises over 53,000 batteries, arranged in 136 separate Nodes for increased reliability, and the patented Advancion control system, which responds to grid changes in less than a second.



Electricity Storage Network Sponsor Member, RES, has announced its first UK contract to build and support a battery energy storage system.  This contract represents one of the first energy storage projects in the UK to be delivered under a fully-wrapped Engineering, Procurement and Construction (EPC) contract.

RES has signed the EPC contract with Western Power Distribution (WPD) for a project which will demonstrate nine different applications of energy storage on the grid.  It will be installed alongside a British Solar Renewables Ltd (BSR) solar park south of Glastonbury, in Somerset.  The centre-piece of the WPD initiative is the 300kVA/640kWh battery energy storage system. The electricity storage system will be supplied by BYD and will be fully self-contained including hundreds of individual battery cells, power conversion equipment and safety and monitoring systems.


November 2015

ESN Members Attend European Utility Week in Vienna 

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Steve Jones (S&S Electric), David Green (Moixa Technology) and Nick Kitchin (Cumulus Energy) at European Utility Week, Vienna

October 2015

National Infrastructure Commission - Storage


The Chancellor announced on Monday 5 October the creation of an independent National Infrastructure Commission, covering transport, building and energy infrastructureThe NIC will be chaired by Lord Adonis and will specifically deliver future proof energy infrastructure including large-scale storage, by helping to bring down costs:


Delivering future proof energy infrastructure


The UK’s power sector has a growing problem in matching demand and supply, meaning that keeping the lights on requires a level of redundancy in the system – generation which is not always used. The NIC will look at how to optimise solutions to this problem, including through large scale power storage – where innovation is needed to bring down costs; demand management – how to incentivise flexibility in demand so we don’t need as many power stations; and interconnection – how we best link the UK to the markets in the rest of Europe.


The NIC and Treasury will consult widely on national needs and we will represent member interests during this process. For more information visit the link



Wednesday 9 September 2015 - ESN represents members at the highest level...

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Photograph by Ian Davidson



29th April - Electricity Storage Network goes International!

Last week the IET hosted its annual Energy Lecture 2015 in India. Anthony Price, director of the Electricity Storage Network, gave a talk on 'Electricity storage in a renewable world'.

Press article can be read here. 

21st April - £3.7m awarded to research energy storage in the UK

University of Warwick, Nottingham and Loughborough have been awarded £3.7m in funding from the Engineering and Physical Sciences Research Council. This five-year research programme will focus on the technical and economic issues faced by integrating large grid scale energy storage with the energy network.

21st April - 'UK must embrace energy storage'

Recent news article published in reNEWs stresses the need for energy storage in the UK and outlines how storage technology could lower consumer costs, create jobs and develop a more secure, efficient energy system.

21st April - Dr Jill Cainey speaks on Energy Storage at Renewable Energy Marketplace 2015 Westpoint Arena,

Everything you need to know about renewable energy, energy efficiency measures and generation. Dr Jill Cainey, from the Electricity Storage Network, will be speaking about energy storage alongside Ben Bowler, from Siemens. This session will cover the different types of storage available on the market, how they work and what they cost. It will also look at some examples of storage in practice and how the technology is likely to develop in the future.

15th April - Energy Storage briefing from the Parliamentary Office of Science and Technology

'The Government lists energy storage as one of eight great technologies in which the UK can become a global leader. This briefing outlines the roles of energy storage in the electricity, heat and transport sectors and describes the technologies used from the household level up. It also discusses current barriers and policies for energy storage and potential future uptake.' More information.




12th March - The ESN welcomes recommendations on electricity storage from the House of Lords.

The recent report on 'The Resilience of the Electricity System' from the Science and Technology Select Committee (1st Report of Session 2014–15) recommended that the Government should improve the market framework, so that investment in electricity storage is stimulated.

Ed Davey is also quoted as saying '“For me, the alchemy for energy policy is storage'. Full report can be accessed here

4th March Anthony Price at Ecobuild 2015

On the 5th of March Director of the Electricity Storage Network, Anthony Price, spoke in the Green Energy Seminar Stream at the Ecobuild conference. He addressed the title 'Understanding the policy landscape and the potential for storage'.

For more information about the conference please






UK energy minister defends record on energy


Speaking at the Electricity Storage Network's 2015 Symposium last month, Energy Minister Amber Rudd defended the Government's record on energy storage policy. Current policy is limited, and ESN members argue there lacks an overarching policy direction on energy storage in the UK. During questions, Rudd maintained much of the UK energy policy was 'under review', including the status of the Feed in Tariff, recent capacity market problems, support for innovative technologies, and the development of a national energy storage plan. The Minister did however praise recent developments in the industry, showcased at the ESN Symposium, including Moixa's new demonstration project. Read the full article here.



28th January Electricity Storage Network Annual Symposium

The Electricity Storage Network Annual Symposium was held on Wednesday the 28th January. The conference aimed to discuss how energy storage should move from innovation and demonstration to implementation.

Presentations from the winners of DECC funding for energy storage projects kicked off the day in style. We were delighted to hear the positive comments about energy storage, from Amber Rudd, Parliamentary Under Secretary of State at the Department of Energy and Climate Change. ‘Energy storage innovation could save the UK energy system more than £4billion by 2050’. Her full speech can be accessed here.


The topic for sessions two was ‘What could business as usual look like for electrical storage’. This panel discussion stimulated some lively debate and brought up important questions about the regulatory barriers to energy storage. ‘Defining policy and looking forward’ was the title of the final session for the day. In response to feedback from our recent consultation document, The Electricity Storage Network presented how we intend to support the shift of energy storage from demonstration to implementation. This includes working with complementary organisations, such as the REA, and continuing to put pressure on government and Ofgem for an energy strategy that recognises the value of storage.

Thank you to all who attended the event, in particular our speakers. For more photos from the day visit our Twitter page @ESN_UK.

29th April - Electricity Storage Network goes International!

Last week the IET hosted its annual Energy Lecture 2015 in India. Anthony Price, director of the Electricity Storage Network, gave a talk on 'Electricity storage in a renewable world'.

Press article can be read here. 

21st April - £3.7m awarded to research energy storage in the UK

University of Warwick, Nottingham and Loughborough have been awarded £3.7m in funding from the Engineering and Physical Sciences Research Council. This five-year research programme will focus on the technical and economic issues faced by integrating large grid scale energy storage with the energy network.

21st April - 'UK must embrace energy storage'

Recent news article published in reNEWs stresses the need for energy storage in the UK and outlines how storage technology could lower consumer costs, create jobs and develop a more secure, efficient energy system.

21st April - Dr Jill Cainey speaks on Energy Storage at Renewable Energy Marketplace 2015 Westpoint Arena,

Everything you need to know about renewable energy, energy efficiency measures and generation. Dr Jill Cainey, from the Electricity Storage Network, will be speaking about energy storage alongside Ben Bowler, from Siemens. This session will cover the different types of storage available on the market, how they work and what they cost. It will also look at some examples of storage in practice and how the technology is likely to develop in the future.

15th April - Energy Storage briefing from the Parliamentary Office of Science and Technology

'The Government lists energy storage as one of eight great technologies in which the UK can become a global leader. This briefing outlines the roles of energy storage in the electricity, heat and transport sectors and describes the technologies used from the household level up. It also discusses current barriers and policies for energy storage and potential future uptake.' More information.



The Electricity Storage Network attends the launch of the 'largest battery in Europe'

The Electricity Storage Network was invited to the launch of UK Power Networks 6MW/10MWh battery trial, often quoted as the ‘largest battery in Europe’. The battery has been developed under the Smarter Network Storage project.The Electricity Storage Network members were well represented in the project team, which included Swanbarton, S&C Electric Europe and Younicos.

Amber Rudd, Parliamentary Under Secretary of State at the Department of Energy and Climate Change officially switched on the facility and was very supportive of energy storage. ‘We all know that there is a constant challenge of making sure we keep up with energy demand and reducing the energy carbon footprint. The best way to do that is surely to develop electricity storage in this way’.  


UK Power Networks switches on 'largest battery in Europe' 

UK Power Networks switched on their 6MW/10MWh battery in Leighton Buzzard yesterday. The Electricity Storage Network was there to see all the action.
Read the full BBC news article. Or one from Business Green.

Could 2015 be the year Energy Storage goes Primetime?

Breaking Energy suggest that the 2015 could be the year that major purchasing of energy storage begins. Read the full article online.


Anthony Price interviewed by The Guardian: How can we store energy for a calm and cloudy day?


Anthony Price represents the Electricity Storage Network at the House of Lords

The Electricity Storage Network attends the PRASEG Conference

Representatives from all the major political parties discussed their future energy polices and responded to enquiries from the floor. In particular Amber Rudd, Parliamentary Under Secretary of State, made it clear that DECC, and the current Government, want DNOs to have the ability to ‘manage their systems’ just like the ‘National Grid balances’ the grid. She also highlighted storage as one of the important, new technologies in solving the ‘Trilemma’. Likewise, Duncan Brack, Vice Chair of the Liberal Democrat Manifesto Group indicated that electricity storage would receive funding support as part of their energy policy. Jonathan Reynolds MP, Shadow Energy Minister, included electricity storage as one of a number of technologies that would receive support from a Labour Government..

Earlier in the conference Doug Parr, Chief Scientist for Greenpeace highlighted the development of storage as a player in the global energy industry, exemplified by the fact that by 2018 40% of U.S homes will be powered by solar and storage, without the need for a grid connection.


Anthony Price interviewed by European Utility Week

Anthony Price, Director of the Electricity Storage Network was interviewed as part the Energy Storage Panel at the European Utility Week 2014.
Watch the interview now



Chief Executive of REA: 'The next big thing in renewables is not renewable - it's storage'

The REA announces that energy storage is a new strategic priority for the Association. In the following article Chief Executive Dr Nina Skorupska explains why. Five years ago, solar PV was among the most expensive renewable technologies and had no place in the government's renewable energy plans. Today, its costs are falling faster than any other energy technology in history and it has its own dedicated government strategy.

Over half a million homes have turned their roofs into power stations. Ground-mounted solar farms were the UK's fastest growing source of new power capacity last year. In all likelihood, PV will become the first low carbon power technology to become subsidy-free, possibly by the end of the decade. The moral of the story is that technologies that have transformative potential can do extraordinary things that for a long time seemed unlikely, if not impossible.

Where solar PV was five years ago, energy storage is today. This is in large part thanks to a factory in Sunderland and a department in Westminster. The factory is making lithium ion batteries for electric vehicles (EVs). The department, DfT, is driving EVs forward because it sees in them a solution to urban air quality issues and, further down the road when the UK has more low carbon power, a means of helping to prevent dangerous climate change. Until we have more low carbon power, our best bet for decarbonising transport is sustainable biofuels, both current and advanced, which will also continue to be needed for sectors that cannot be easily electrified, such as freight and aviation.

What's really neat though is that R&D in the EV sector can actually accelerate the expansion of low carbon power generation from renewables. Talk about a virtuous circle!

The reason is that, quite simply, lithium ion batteries are a great electricity storage solution for homes and businesses, as well as electric vehicles. You can store the power generated by your panels when supply outstrips demand (e.g. on a sunny day when you're out the house) and then tap it when you need it (e.g. when you get home late from work and want to binge-watch House of Cards in preparation for the General Election next year). Typical daily household PV generation matches daily household electricity demand pretty well, so with storage, you could actually reduce your electricity bills to practically zero.

What's even more exciting for those half a million households with panels on the roof is that a lot of second-hand batteries will soon become available from current EV owners, because while these batteries only typically last three years in a car, they can last up to 10 years in non-mobile applications, such as your house.

We’ve enlisted the UK’s leading solar expert Ray Noble to focus on unlocking the opportunities for storage at this scale. However, it's not just households that can benefit from storage. Storage could revolutionise the way the national electricity grid is balanced to ensure that supply always matches demand. For example, when supply outstrips demand unexpectedly, electricity could be stored instead of simply turning turbines off, and then released later. Conceivably, storage could eventually do away with the need for constraint payments, meaning a better deal for generators and consumers alike. On the other hand, when demand outstrips supply, storage could kick in to provide the extra power that's needed instead of having to power up fossil fuel generation.

At the moment though, policy is doing little to boost the role of storage in grid balancing. The Capacity Market does not provide much support to storage, with only two storage projects having achieved pre-qualification. Unlike fossil generation, once a store is empty, it takes time to refill (e.g. to pump water back uphill into a pumped hydro reservoir). So while a storage site could benefit by kicking in when the Capacity Market requires it, it could also be penalised if it has recently released its power and has not had time to recharge. This is why when writing our Manifesto we enlisted the support of Anthony Price of the Electricity Storage Network to call for a dedicated offer for electricity storage under the EMR framework, as well as continued investment in developing pioneering technologies like hydrogen fuel cells and compressed air storage.

Ultimately, storage, renewables and EVs all need each other. With joined up thinking, we can realise the full potential of all these technologies. As PV is closest to grid parity, it is likely to be the main driver for storage in renewables in the near future. But advances in storage will also benefit other variable technologies too, like wind and wave, not to mention EVs of course.

We are kicking off this joined up thinking in our Distributed Energy Forum in 2015, which will include dedicated support for energy storage for our members.

With these new tools, people and services, the REA will work with members and key players in storage and renewables to persuade the Government of the need for joined up policies to support storage and distributed energy, to minimise the costs and maximise the benefits of the shift to renewable energy.

It's an exciting time...

An edited version of this post first appeared on BusinessGreen on the 16th October 2014.

The Electricity Storage Network calls for a national strategy for electricity storage as it presses for a 2000 MW target for additional electrical energy storage.

With an increasing interest in all forms of energy storage, and electricity storage in particular, the Electricity Storage Network’s campaign for a national strategy continues to gain attention.  Electricity storage should be a key part of our electricity system, and a plan to increase the use of storage is essential if we are to benefit from this important technology.

The Electricity Storage Network has published its Infographic, which may be downloaded from this site.

If you have a large format printer, such as A3 download Click here

If you have an A4 or equivalent printer, you may wish to download Click here

For on screen viewing, Click here



PRASEG Parliamentary Reception and launch of ESN report 'Development of Electricity Storage in the National Interest'

PRASEG hosted, in association with the Electricity Storage Network, a reception entitled, ‘Electricity Storage in the Future Vision for a Lower Cost Sustainable Energy System’. This event was sponsored by RESPoyryS&C ElectricHighview Power and Parker Energy Grid Tie. Speakers addressed the important future role for Electricity Storage in our electricity system and the benefits it can deliver for the UK.

This reception explored recent developments in electricity storage technology, including those being delivered by District Network Operators through the Low Carbon Network Fund and discuss the potential and benefits of further investment in this sector. The reception also showcased a new vision statement by the Electricity Storage Network making recommendations on the policy framework needed to support the development of a lower cost and sustainable energy system



Electricity Storage and Electricity Market Reform

The Energy Act has now been passed and the decision making process is now going through the detail of the secondary legislation.  Electricity storage is able to participate in the Capacity Market, although the rules and details of its operation are not as favourable as we would like.  ESN staff and members are in discussion with DECC officials about details of the implementation of the Capacity Market.  We continue to press for a role for storage which demonstrates its real value.



DECC Energy Storage Competition - Winners announced!

The first tranche of winners in the DECC energy storage competition have now been announced:  congratulations to ESN member REDT, who have been awarded £3.6 million to build and demonstrate their flow battery system.

The weblink is hereWe applaud all the winners in the competition - the total of £5 million awarded is great news, but we continue to press the government to ensure that there is a role for electricity storage in the electricity market of the future.

Solar Power Portal, 'ESN warns that energy storage delays could cost taxpayers £100 milllion a year'

UK urged to focus on storage

UK Government Grants Energy Storage Funding to Redt, Moixa

Energy Storage Journal: Electricity Storage: is the UK letting an opportunity slip away?



Debate on energy and electricity storage during committee stage of Energy Bill

During the committee stage of the Energy Bill, there was a debate for about one hour on energy and electricity storage.  The amendment covering electricity storage starts at 1 h 43 min into the debate.

Lord Stephen introduced his amendment, he set out the background to why storage is important:

"Making major inroads into reducing our reliance on fossil fuels for transport and heating will require even more renewable energy and, almost certainly, even more renewable electricity. One of the most important answers and, I would argue, the most central one, is storage. I do not know what sort of storage it will be but it will probably be big.....

"We will place more and more reliance on renewable generation, but the output from both solar photovoltaic and wind generation is time variable. Photovoltaic is the best example of that. This means that we need a method to balance the output to make it useful for our electricity system. There are suggestions that the problem could be solved by more interconnectors and adding more flexible gas fire generation through the capacity payments system, switching demand or just averaging out the renewable generation over the whole country. However, recent reports to DECC point out that interconnectors cannot be relied on as a source for balancing services and demand response is not a complete solution.

Electricity storage is a perfectly valid and achievable method to provide system balancing. It can absorb and reject power and act as reserve capacity to cover short or long-term interruptions. Through trading, it smoothes prices and so reduces the overall system cost. By reducing the peak demands on the system, it lowers the investment costs of our distribution networks; by absorbing energy from our wind farms and PV installations at times of low demand, storage lowers the carbon intensity of our electricity industry. Electricity storage remains one technology that does not receive support or any form of secure income stream under the Energy Bill proposals."

He referred to our target of 2 GW of new electricity storage by 2020 and asked for Government support for that point.

Viscount Hanworth supported the need for storage, with illustrations of the value of pumped hydro and other technologies

Baroness Worthington provided a very complete summary of a range of storage technologies, applications and installations, and raised the very important issue of ownership and operation of electricity storage under the present licensing conditions.

She pointed out:

"What the sector is really looking for is a clear signal that it will be able to participate in the capacity mechanism and that there will be a way in which it can compete against the other potential sources of capacity that will be brought forward. The problem is that we are dealing with what is essentially quite a new set of technologies which is facing all the challenges that you would associate with that. Potentially, these technologies could be commercially viable, but they are not yet. How can they compete in a capacity market that essentially seeks to be technology neutral and provide one price for all? This is a contradiction in the proposals being made by the Government that really needs to be thought through."

In reply, the Minister, Baroness Verma said:

"The Government agreed that technologies that can be used to help balance the supply and demand of electricity, such as energy storage systems and demand-side response and interconnection, are increasingly likely to be required. This was the conclusion in DECC’s report, Electricity System: Assessment of Future Challenges, which was published in August 2012. 

Energy storage systems can be used to store surplus electrical energy for use at times of high demand. They help to match the supply and demand of electricity efficiently and cost-effectively. Technology companies in the UK and elsewhere are actively developing energy storage systems which could help to address the problems associated with intermittency of supply. However, different energy storage technologies are currently at different stages of development and further innovation and development is needed to reduce the costs and thus make storage technologies applicable to wider deployment.

The department therefore identified energy storage systems as a priority area for funding under its Innovation Programme. We then consulted with storage technology developers and users, as well as other public sector innovation funders, before developing a plan to help support the development of storage systems. This led, in October 2012, to the department launching two innovation competitions to support research, development and demonstration of energy storage systems. As a result of these competitions, funding has already been awarded to 16 energy storage projects, and in the autumn DECC expects to announce details of up to our energy storage demonstration pilots, which it will be supporting during the current spending review period. The aim of these pilot projects is to demonstrate the scope for cost reduction of innovative energy storage technologies and to explore the opportunities for deployment of energy storage technologies to address a wide range of future UK electricity network balancing and other storage needs.
Although the amendment was not passed, the Minister concluded by saying:

The department is taking this matter very seriously and that there is considerable work in hand without a statutory requirement.

The extract from the Lords Hansard for the grand Committee Debate for 30 July may be read here.

July 2013 We continue to press for increased recognition of the role of electricity storage within our power systems

We continue to press for increased recognition of the role of electricity storage within our power systems.  Unfortunately there seems to be a barrier to opening policy makers' minds: Although electricity storage may be able to operate within the Capacity Market in Great Britain, this alone does not provide the incentive for deployment of electricity storage at the scale that we need.  An extract from the Lords Hansard ( the account of parliamentary business ) for 18 July may be read here.

Lord Grantchester asked:

"As our system includes more variable renewable generation, it will become increasingly important to encourage electricity storage.

The Government are currently directing £50 million into grid scale research and demonstrations in electricity storage. However, without a route to market, that money would be wasted. Electricity storage has the potential to provide savings of more than £10 billion per year by 2050—that is £400 per household—but no savings at all if the capacity market takes no account of this contribution. It would be interesting to hear whether the Government support the Electricity Storage Network’s target for an additional 2 gigawatts of storage installed on the system by 2020...

"I will make a comment later in support of the amendment of my noble friend Lord Hanworth but I conclude with a few questions. First, as the Government have said that they consider DSR and storage to be a part of the future capacity market, can the Minister say what level of DSR and electricity storage within the capacity market the Government would deem a success?" 

Baroness Verma replied:

"...we recognise that certain technologies, such as demand-side response and storage, have different characteristics from generation. That is why we have announced the transitional arrangements. In addition, we have designed the enduring capacity market to ensure that demand reduction and storage can participate effectively by running capacity auctions both four years ahead and one year ahead of when capacity is expected to be required."


Government announces £30 M of funding to create R&D facilities to develop and test grid-scale energy storage

David Willets, the Minister for Universities and Science, announced a package of £600 million support for science which is to include £30 million to create R&D facilities to develop and test grid scale energy storage.  The announcement on 23 January and further details are available here




George Osbourne: UK - Future World Leader in Energy Storage

On Friday 9 November, in a speech at the Royal Society, the Chancellor George Osborne said that the UK must take a global lead in developing a series of low carbon technologies, including energy storage:

"There is the challenge of storing more electricity for the grid," Osborne said. "Electricity demand peaks at around 60GW, whilst we have a grid capacity of around 80GW – but storage capacity of around just 3GW.
"Greater capability to store electricity is crucial for these power sources to be viable. It promises savings on UK energy spend of up to £10bn a year by 2050 as extra capacity for peak load is less necessary."

An article detailing the chancellor's speech can be accessed here.


'Build megawatt hours, not just megawatts'

“Meeting  Britain’s power requirements needs storage as well as generating capacity”  says Anthony Price, Director of the Electricity Storage Network.  "The expected shortfall in reliable generating capacity  has been caused, in part, by a lack of commitment to a balanced portfolio of generation, storage and network investment. Building megawatts of new gas turbine plant is part of the solution, but adding more electricity storage into the power system will bring real long term benefits.

“Adding storage to a power system is a way of operating the whole system more efficiently.  Storage will reduce the total operating costs, and so reduce the costs of energy to consumers.  Instinctively, everyone knows that storage is good idea, making better use of wrong time energy is one of the priorities of the renewable energy industry.

"The opportunity is now."  Referring to reports that large scale investment in gas fired electricity generation is planned, the ESN's Director continues:  " if the Government does not support the use of storage as part of the solution to meet our power shortfall, we will lose this opportunity, and live to regret it.  What is low cost now will take us down power’s  one way street. It will be difficult and costly to reverse.  Our plans for the Smart Grid show we need storage and we must seize this opportunity now.”

The Electricity Storage Network is the trade and industry group that promotes the increased use of electricity storage in grid connected applications.  Its members include manufacturers and developers of electricity storage products, as well as users and researchers in storage technologies.  Electricity storage technologies include  battery systems, pumped hydro, liquid air, pumped heat, compressed air and flywheels,.  Electricity storage projects are in operation throughout the world. 


MPs call for electricity storage to be recognized in the new Energy Bill

The House of Commons select committee on Energy and Climate Change has published its review of the Draft Energy Bill (23 July 2012) and has called for demand-side response and storage technologies to be recognised and defined explicitly in the Energy Bill. The case is argued for support for storage and DECC should investigate the legislative and other barriers to storage, and remove any that prevent it from competing fairly in the market.

The report may be downloaded here  (see volume 1, para 192)

The Electricity Storage Network provided written evidence to the committee, and this has been commented upon in the report.  Many other witnesses provided evidence supporting the role of storage.

Government failing to adequately support vital electricity storage technologies

The Institution of Mechanical Engineers has published a policy statement  - 31 May 2012 - which calls for action by Her Majesty's Government in three key areas:

1. Support actions to identify the true system benefit of electricity storage. As a matter of priority the UK’s Department of Energy and Climate Change (DECC) should carry out a detailed analysis to estimate the realistic requirements for electricity storage across the whole UK power system and its corresponding value to the nation.

2. Develop policy frameworks that reward the value of electricity storage in the UK’s power markets. The UK Government’s Electricity Market Reform (EMR), which is examining and revising the commercial and regulatory structure of the nation’s electricity market, should take into account the unique nature of electricity storage and remunerate investors and operators accordingly.

3. Encourage and support UK development of storage technologies for exploitation in world markets. The UK Government should advance the commercial-scale demonstration of electricity storage technologies in the UK, and thereby create technical value that UK companies can export overseas.

These recommendations are very much in line with our own views and policy and we commend the policy statement.  You can download the policy statement here, and the accompanying press release here


Imperial College publishes major report on the potential for electricity storage in the UK:  “Role and Value of Energy Storage Systems in the UK”

Role and Value of Energy Storage Systems in the UK:   The Carbon Trust commissioned this study from the Energy Futures Lab at Imperial College London to address the key questions relating to the future role of electricity storage in the UK: 
This study identifies significantly higher value to storage than previous studies For example, in a 2050 high renewables scenario, application of energy storage technologies could potentially generate total system savings of £10bn/year.

It is likely that a portfolio of different energy storage technologies will be required, suited to a range of applications. This analysis demonstrates that the value of energy storage technologies in low carbon energy systems with large contribution of renewable generation may be very significant; it will therefore be important to ensure that energy policy and market framework do not impose a barrier but rather facilitate the application of cost-effective energy storage technologies. This work should inform energy storage technology developments and related innovation policy in order to further reduce the cost of storage.

Electricity storage innovation meeting: ESN, DECC, OFGEM and BIS

ESN members and representatives of DECC, OFGEM and BIS met recently in London to exchange views and ideas on the support for electricity storage innovation.  Ideas covered both support for technology development as well as addressing electricity market reforms.  A note of the meeting will be sent to all members. ESN members included network owners and operators, manufacturers, developers, and others active in the electricity storage spectrum. The discussions with government departments will continue over the coming months.

This activity comes at a time when recent reports and discussions have highlighted the role of storage as one of the four pillars of flexibility in the UK’s future electricity system.  The Electricity Storage Network is promoting the role of storage in the power industry and is active to ensure that electricity storage is included in revisions to regulations and legislation. 

Presentation slides by Ian Ellerington of DECC are available for download here (available by permission of DECC)

Notes of the meeting will be sent to members directly



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