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Utility Scale Energy Storage Market Report – UK 2023-2027 – New from AMA
The 3rd publication in AMA’s renewable energy report series, the Utility Scale Energy Storage Market Report provides a detailed evaluation of the current state of the market and prospects.
The UK is committed to reducing greenhouse gas emissions, with legally binding targets from the Paris Agreement and its Net Zero by 2050 goal. Emissions have decreased to 50% of 1990 levels due to reduced coal reliance. However, the aging energy infrastructure and delayed solar and wind projects hinder progress.
A queue for grid connection is causing delays for many projects. A change in National Grid’s policy in late 2023 should speed up development. Solar, wind, and energy storage should be prioritized for their cost-effectiveness, energy security, and quick installation. Hinkley Point C and Sizewell C nuclear plants face delays and cost overruns.
To reduce emissions, the UK needs to electrify everything and upgrade its infrastructure. National Grid and other DNOs must build five times more infrastructure in the next seven years. Energy storage, including battery energy storage systems (BESS), is vital for grid stability. BESS has surpassed pumped hydro in capacity and is rapidly growing.
Short-duration storage balances grid frequency and voltage, while long-duration storage enhances grid resilience. Frameworks for long-duration storage projects are lacking. BESS storage duration is improving, with 8-hour projects in development. A range of storage technologies should be prioritized.
UK energy storage capacity could exceed 20GW by 2027 with optimized planning policies and financial incentives. The competitive landscape includes major energy companies, ESG funds, startups, and independent power producers. Collaboration between developers is possible. Developing energy storage will lead to a greener grid, job creation, and cleaner air, positioning the UK as a global example.
Based upon a combination of planning and project data, interviews with key stakeholders and desk research, this report provides an independent and unbiased review of the current position of energy storage market and growth prospects to 2030.
Report Summary
Context
- Overview of climate change and the role of energy storage in electricity supply
- Definitions of the various types of energy storage technologies
- Explanation of how grid storage systems work
- Overview of the different types of energy storage systems e.g. battery energy storage systems (BESS), pumped hydro, compressed air energy storage
Market Overview & Forecasts
- Overview of UK electricity generation, distribution and supply
- Energy storage market capacity
- Transition to a ‘smart grid’
- Forecasts for agreed BESS grid connections to 2030
- Scenario forecasts for BESS (GW)
- Potential for pumped hydro capacity to 2031
Market Influences and Drivers
- Political – government policy and Energy Security Strategy, Net Zero, BESS NSIP requirements, political instability, renewable initiatives overseas
- Economic – energy prices; energy storage markets and CfD; government and private funding; PPAs; energy prices, lithium prices
- Social – ESG, renewable perceptions, lack of understanding of energy storage, increased environmental awareness
- Technological – grid infrastructure and upgrades; grid connection queue; reduced grid inertia; generation intermittency; EV charging; need for LDES; battery cooling
- Legal – UK environmental obligations; contracts with offtakers; land rights; UK planning system
- Environmental – reduced fossil fuel energy; lithium extraction and recycling; solar and wind intermittency
Energy Storage Companies and Competitive Landscape
Review of participants in energy storage market including:
- Major energy companies – including major energy producers developing energy storage projects
- Energy storage developers – other than major energy producers that have developed energy storage asset
- Fully funded startup companies that have not yet developed energy storage projects but have significant funding
- Renewable energy developers – solar & wind developers that also develop BESS
- Independent power producers not part of a regulated utility that are developing BESS assets
- ESG funds – companies financing renewable energy projects
- Originators – smaller companies that develop sites for renewable energy assets but lack the funds to deliver a full project. Get sites ‘shovel ready’ to sell on
- Property developers – real estate companies who also develop sites for energy storage
- Pumped hydro developers and CAES/LAES developers
Regional analysis
- Review of all energy storage projects – operational/active and in planning.
- Breakdown of installed capacity by region.
- Further focus on breakdown of BESS projects. Evaluation of prospective energy storage by region
Innovation, sustainability and future of the grid
Review of developments in innovation a cross the different energy storage technologies:
- EV batteries, 2nd life and recycling
- Advanced lithium-ion batteries
- Flow batteries
- Abundant electrode materials
- Thermal energy storage technologies including sensible heat storage, PCM latent heat storage
- Renewable energy generation
- Future electricity grid system i.e. Smart Grid and superconductivity
The Utility Scale Energy Storage Market Report – UK 2023-2027 is available now and can be ordered here
.
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