Electricity markets globally are undergoing a transformation led by the emergence of digitalisation, decentralisation and decarbonisation. The proliferation of renewables, the transforming grid, and the rise of the prosumer have driven the need for electricity storage (storage) to become an indispensable part of this transition. Storage resources have a myriad of applications across the entire value chain including seasonal storage, frequency response, transmission and distribution services, domestic storage and electric vehicles. While the UK is anticipated to be one of the 8 leading countries for storage by 2030, it is currently ranked behind USA, China and Japan: China’s market share of lithium-ion battery forecasted to grow to 65% of total global market by 2021. Moreover, only one company in Cleantechnica’s list of “Battery storage Companies to Watch” in 2015, had headquarters in the UK. How does the UK then realise its aspirations?
Gemserv proposes three goals that the UK should strive towards:
- Establish flexibility in regulations for enabling innovation, integration and monetisation of storage applications across the energy value chain;
- Enable public-private partnerships between regulators, utilities, industry and start-ups to inspire new market design and develop regulatory system(s) concurrently; and
- Develop a roadmap for rapid scale-up and deployment of storage to complement investment in technology development.
Becoming a world leader in storage entails much more than manufacturing and early-adoption of new technologies. By creating the right market conditions for new entrant participation and enabling innovation, the UK could proactively accelerate large-scale deployment of storage.
We have produced a detailed article on the subject which can be accessed using the download link below: