Marc Smeed was presenting at this year’s Energy Storage and Connected Systems conference, London – sharing his insights on the future for storage and flexibility.
Thanks again to REA for hosting the ESCS conference this year. Similar to last year, it was a really interesting opportunity to discuss all things storage and flexibility. The outlook for storage has changed a fair bit since last year’s conference. There have been several regulatory/policy developments, most notably:
There have also been very significant developments in the market.
These system shocks (pun intended) to the revenue stack for energy storage facilities are being compounded by the uncertainty surrounding regulatory changes promised by Ofgem’s Charging Futures Forum and Targeted Charging Review. These are both likely to introduce yet further shifts in the potential value that storage and flexibility can bring in relation to network use of system charges.
So, the 12 months since Feb 2017 have definitely held mixed fortunes for those seeking to build new energy storage, DSR and other flexibility services. But looking forward, there are some really exciting opportunities on the horizon too. The sessions at this year’s ESCS conference this week highlighted the potential of opportunities to provide services to DNOs as well as increased value from the wholesale markets (arbitrage), settlement processes (NIV chasing) and the balancing mechanism (constraint management).
There is no doubting the need for more flexibility across the whole electricity system as intermittent renewables continue to make up more and more of our supplies. There is also no doubt that the networks cannot realistically manage large volumes of EV (and heat pump) uptake without significant network investment and/or some clever thinking around network use and customer flexibility. So the opportunities for storage going forward are tantalising.