Highview Energy’s CRYOBattery is one such long-duration vitality storage expertise to have emerged in recent times. Picture: Highview Energy.
Power market mechanisms should evolve to be able to help long-duration vitality storage, with the prevailing frameworks having “vital issues” incentivising these applied sciences, a panel of consultants has concluded.
Talking on a panel debating the coverage panorama for long-duration storage on the ongoing Power Storage Summit 2021, organised by Power-Storage.information writer Photo voltaic Media, Robert Hull, managing director at vitality advisory Riverswan and previously managing director of UK vitality market regulator Ofgem, highlighted how whereas total coverage stays supportive of long-duration vitality storage applied sciences, revenue-generating mechanisms are failing to dwell as much as that promise.
Hull famous how nearly the entire UK’s 4GW suite of long-duration vitality storage property, which in itself is sort of totally pumped hydro, was all constructed a long time in the past after the UK vitality market was privatised.
This lack of market exercise for long-duration vitality storage comes towards a backdrop of prolific developments for different applied sciences, particularly lithium-ion batteries, within the UK market the place frameworks such because the Balancing Mechanism, utilized by UK system operator Nationwide Grid ESO to steadiness energy provide and demand, and the Capability Market (CM), which is used to handle seasonal era capability margins, have confirmed fertile floor for asset operators to ‘stack’ totally different sources of income.
Nevertheless the identical can’t, at the least presently, be stated for long-duration vitality storage applied sciences, with Hull suggesting that there are challenges in such incentives “not giving the long-term worth indicators to the companies supplied by long-duration storage”, equivalent to ancillary companies.
“The market [for long-duration storage] gained’t develop except that tweak to present mechanisms is made,” Hull stated, including that the “lacking hole must be crammed to provide traders confidence”.
Hull’s view was echoed by Anthony Value, managing director at UK-based vitality storage consultancy Swanbarton, who prompt that whereas numerous tweaks to the UK’s vitality market had enabled the addition of renewable vitality property, there had not but been the identical impact for long-duration vitality storage.
One potential answer to this, Value prompt, could be a modernisation of the CM to be able to make it extra related to the evolving wants of the facility system.
Presently, the CM auctions for era capability to be out there all through the winter months within the occasion of a surge in demand or different system stresses. This has positioned worth on the era potential of vitality infrastructure however not, as Value prompt, any asset’s inherent flexibility. A modification to the CM which mirrored the potential of long-duration vitality storage – or every other storage asset – to not simply discharge but in addition cost from the grid when required, would make the CM mechanism extra related to an influence system transitioning in direction of a high-renewable, internet zero standing.
An alternate could be an escalation of carbon coverage, such because the European Union’s Emissions Buying and selling Scheme, which imposed extra vital prices on carbon-emitting turbines that enabled long-duration vitality storage applied sciences to compete on value with cheaper, fossil fuel-fired turbines equivalent to mixed cycle gasoline generators (CCGTs).
The Power Storage Summit 2021 continues on 3 March whereas all earlier periods can be found to view on-demand for attendees. See the website for more details.