Storage could 'halve curtailment of British wind'
According to energy analytics outfit LCP, ramping up investment in energy storage could cut reduced wind output in Great Britain by as much as 50 percent.
LCP estimates that an extra 20 gigawatt-hours of battery storage could decrease the amount of wind power wasted by up to 50 percent based on current wind power capacity.
The company predicts that wind reductions between Scotland and England will cost consumers £ 1bn per year by 2025, a figure it said is likely to grow if the 40 GW offshore wind target of the government is met.
The LCP analysis shows that on 75 percent of days in 2020, wind was reduced in Great Britain, with over 3.6 terawatt-hours of wind turned off in total, primarily due to network constraints.
This volume of wasted wind power is enough to have powered over a million homes for a whole year.
LCP partner Chris Matson said: “Energy storage will play a crucial role in helping to decarbonize the power system, by balancing the grid in real time and backing up renewable generation.
“The increase in renewable energy capacity, without increases in network capacity or flexible technologies, will result in increasing volumes of renewable energy being wasted, with costs ultimately falling on consumers.
“This issue needs to be tackled urgently if the UK is to meet its net zero targets.”
The analysis coincides with a new LCP report, titled 'Is battery storage a good opportunity for investment? ’.
The report looks at the main sources of revenue available to battery storage asset investors, how these markets will change over time and the opportunities for power traders.
Matson added: "Over the coming years, spending on the UK's energy storage infrastructure is likely to increase."
As the system changes and technologies mature, due to their unique capabilities allowing them to provide value in multiple markets, we expect the business case for battery storage to change in part.
“Due to their flexibility, battery storage assets will continue to provide value in the balancing and frequency response markets.
“Over time, arbitrage opportunities are expected to grow as renewable penetration drives increases in price spreads.
“Capacity Market prices are also expected to increase, and longer duration battery storage assets will capture more of this value due to their higher de-rating factors.”