While electricity storage technologies are available on commercial terms, the market structure can make it hard to build a business case, the Electricity Storage Network (ESN) said. That is despite benefits to the system as a whole from using storage to balance supply and demand.
The report highlighted a variety of policies and targets in other countries to support storage. California has given utilities a mandate to procure 1.3GW of storage by 2020. Germany subsidises 30 per cent of the cost of storage associated with solar PV. Puerto Rico requires renewable developers to include 30 per cent of capacity as storage.
ESN is calling on the UK government to adopt a target of 2GW of new electricity storage capacity by 2020, which it says will aid a greater uptake of renewable generation. The industry group also wants to see storage technologies receive the same support as other low carbon technologies.
The UK system has 3GW of pumped hydro storage and handful of much smaller scale battery and liquid air projects at present. There are grants available through the Low Carbon Network Fund and central government for demonstration projects but the route to commercial development is unclear.
ESN’s strategy would see a major increase in user-led and distributed storage schemes as well as centralised, grid-scale developments.