Demand side response in the Irish Capacity Remuneration Mechanism (CRM) is to face de-rating factors already applied to storage duration limits under new rules confirmed by the country’s electricity market authority.
UK Power Reserve has been bought by the Sembcorp energy group for £216 million in a surprise deal that will see the Singapore-based company take in over 1GW of additional capacity, including 120MW of under-development battery storage projects.
Industry trade body Energy UK has said renewables should be fast-tracked into the Capacity Market and new, ‘revenue stabilisation’ Contracts for Difference auctions put into place as part of the Electricity Market Reform’s (EMR) five-year review.
Battery energy storage is now being used at two of the largest river hydro projects to deliver a range of grid services, load shifting and energy trading, with a third planned for later this year by Barn Energy.
Scottish Power has submitted a proposal to extend recently introduced battery de-rating factors in the Capacity Market to storage included in demand side response bids in what has been described as the latest attack on the battery market.
The capacity market is rapidly becoming “outdated” after the latest auction failed to secure capacity and value for new technologies like energy storage, which is now in “a state of flux” following changes to de-rating factors.
National Grid’s T-4 auction for the 2021/22 winter period has cleared at a record low price as battery storage projects seemingly struggled to compete.
Battery storage and demand-side response have continued to play a crucial role in the UK’s power mix, together landing more than 500MW of contracts in the most recent T-1 Capacity Market auction.
