Credit rating agency predicts widespread use of battery technology will bring down customer bills

The widespread use of battery storage in the electricity grid will be credit positive for transmission network operators, according to Moody’s.

The credit rating agency says the use of battery storage will allow transmission operators to integrate renewable generation at a low cost, providing them with an opportunity to outperform the regulatory settlement.

Graham Taylor, vice president – senior credit officer at Moody’s, said: “By reducing the need for payments to wind and solar generators where the is insufficient grid capacity, and by allowing for lower in investment in new generation connections and grid reinforcement, battery storage will slow the increase in customers’ energy bills that could otherwise trigger political or regulatory intervention.”

The UK’s transmission operators at National Grid; Scottish Hydro, part of SSE; and SP Transmission, part of Scottish Power.

Moody’s predictions are contained in its latest report, ‘GB regulated energy networks: energy storage to enable to enable a more sustainable electricity grid’.