Can battery energy storage prove its worth and unlock the UK’s clean energy future?

Can battery energy storage prove its worth and unlock the UK's clean energy future?

As 2024 became the hottest year on record, more evidence was brought to our door that we are faced with an urgent need to accelerate climate-friendly energy solutions and limit global warming and its effects. At COP29, the UK’s energy secretary described the move to renewable energy as “unstoppable” – rightly so: renewable energy has proved itself to be a cost-effective, practical alternative to fossil fuels, innovation is rapidly improving, and investment is surging.

The UK’s commitment to renewable energy has forged remarkable backing across the nation – 84% of people in the UK support renewable energy use, according to the Department for Energy Security & Net Zero. Yet, as Britain continues to push towards its domestic climate targets, three key underlying challenges within the industry must be addressed to unlock a new level of growth acceleration: reliability of solutions and energy sources, stability across grid infrastructure and economic feasibility. The questions that hang around all three are fuel for the fire of scepticism. And in recent months, some voices have doubled down on the call to “drill, baby, drill” – advocating for increased fossil fuel exploration. It is within this environment that the technology underlying the renewable energy transition must prove its worth.

Enter battery energy storage systems, known as BESS – a technology that could prove transformative for Britain’s future energy landscape.

BESS development in the UK

So, what is BESS? At its core, it is a rechargeable battery system designed to stabilise the energy grid amongst other benefits. The transformative technology, which stores electricity in batteries for later use, can address all three of the aforementioned barriers to renewable energy growth. BESS is a unique solution through its ability to integrate with other renewable energy solutions and maximise their efficiency and impact, driving a compound positive effect.

BESS was introduced to the UK in 2016, and the market has been growing since. Today, many would argue it is booming. The UK is predicted to reach 24 gigawatts (GW) of installed capacity by 2030 – enough to power around 18 million homes for a year. Over the next four years, at a broader European level, BESS capacity is expected to grow at a combined annual rate (CAGR) of almost 50% – more than quadrupling between 2024 and 2028.

On a global level, the market is also opening its doors. For example, delegates at COP29 agreed to a milestone pledge to raise global energy storage capacity to 1.5 terawatts (TW) by 2030 and to scale up investments in the electricity grid away from fossil fuel reliance. In other words, there are ambitious global and domestic targets in place, and a strong pipeline of projects to drive us towards these goals.

How does BESS work?

By storing and then providing on-demand energy supply, BESS effectively smooths out the intermittency issues associated with other forms of renewable energy such as solar and wind power. In short, BESS can ensure the lights stay on and critical systems keep running in times of need. This capability ensures a consistent power supply, hence, BESS has emerged as a plausible option for critical infrastructure in the sustainable energy transition, directly addressing concerns about the reliability of renewable energy sources versus traditional sources.

The reliability of BESS extends beyond its operational capabilities. Advanced technological safeguards and risk mitigation strategies have been implemented to ensure the safety and dependability of these systems and build confidence in the technology.

The economic case for BESS

The economic viability of BESS projects will be determined by a number of factors including market conditions, proper financing, optimal operational management, and perhaps most importantly, ongoing technological innovations. Advancements in battery chemistry, manufacturing processes, and system integration are continuously driving down costs while improving performance. For instance, the average capacity of battery projects being submitted for planning permission has now risen from 27 megawatts (MW) in 2019 to 80MW  – an increase of 196%. For context, 80MW capacity could power roughly 125,000 UK homes for several hours during peak demand periods.

As projects scale up, we will see economies of scale created and as a result, an increasingly cost-effective suite of BESS solutions. The UK government estimates that technologies like battery storage could save the UK energy system up to £40 billion by 2050, reducing energy bills and supporting the transition to a low-carbon economy.

Moreover, BESS is particularly valuable in integrating multiple renewable energy technologies into the grid, creating a more resilient and diversified energy ecosystem. The result is that BESS plays a crucial role in mitigating price volatility caused by the variable nature of renewable energy production. With UK households facing energy price fluctuations driven by a range of complex factors in recent years, BESS can act as a buffer. By storing excess energy from renewable sources during peak production times and releasing it during periods of high demand or low production, BESS helps stabilise energy prices and supply.

In addition, BESS can prevent the issue of wasted renewable energy during times of excess production, such as the £1.5 billion spent to curtail over 6.5 TWh of wind power between January 2021 and April 2023. It not only represents a significant economic saving by maximising the value of the UK’s renewable energy investments but also maximises the utilisation of clean energy resources.

When discussing the economic feasibility of BESS and renewable energy, it’s crucial to consider the long-term costs of environmental inaction and continued reliance on fossil fuels. While the initial investment in nascent renewable technological infrastructure may seem substantial, it pales in comparison to the potential economic impacts of climate change, which could cost the global economy trillions of dollars in the coming decades. By enabling greater integration of renewable energy sources, BESS contributes significantly to reducing greenhouse gas emissions and can help to power the pursuit of the UK’s updated commitment to cut emissions by 81% by 2035 compared to 1990 levels.

Conclusion

By tackling reliability, grid stability, and economic feasibility head-on, BESS can be the linchpin in the UK’s renewable energy transition, revolutionising the nation’s approach to renewable energy whilst addressing fundamental concerns that are slowing the pace of renewables adoption. The technology also aligns perfectly with Britain’s energy security strategy, offering a solution that supports the prioritisation of domestic renewable generation and creates economic opportunities across the nation.

BESS can be a catalyst for change on a bigger scale, but it is up to companies like Sungrow to drive the industry forward through innovation and collaboration to create the next generation of scalable BESS solutions.

Through BESS, we may well find ourselves on a promising route to a secure clean-energy transition sooner than we think.

Ken Stewart is a Senior Key Account Manager at Sungrow UK & Ireland

Ken Stewart

Ken Stewart is a Senior Key Account Manager at Sungrow UK & Ireland, with over 12 years’ renewables experience. In his time in the BESS space and at Sungrow, he has successfully coordinated over 1.5GWhs of BESS to the UK grid to date. Ken serves in a leadership role within Sungrow’s energy storage division, where he plays a key role in overseeing battery energy storage systems (BESS) projects from inception right through to build & operation.  

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