Energy, Oil & Gas Magazine Issue 224 Jan 2025 | Page 14

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power lines . This imbalance highlights the urgent need for grid expansion and smarter policies to accelerate battery deployment , to ensure the grid can balance supply and demand and keep the lights on .
NESO ’ s planned overhaul of the application system as part of its Clean Power Plan would cut delays affecting hundreds of approved projects ready to connect to the grid and would pare down the 722GW of projects currently in the queue . Schemes will be prioritized if they can be operational within five years and contribute to the right mix of renewable generation types in the right location and at the right voltage to hit the Government ’ s 2030 goals .
UK BESS capacity on track to hit 8GW in 2025
By the end of 2025 , cumulative UK installed grid battery capacity is set to reach 8GW . While speeding up grid connections is welcome , simplifying local planning policies is equally crucial .
NESO ’ s Clean Power 2030 Action Plan calls for a ‘ radical reduction ’ in the time it takes to achieve planning consent for renewables and energy storage schemes , among other measures , to achieve power system decarbonization by 2030 . beyond . Batteries in the northern Scotland and south-east England have already been earning more than the average compared to BESS in the midlands and south-west of England ( source : Modo Energy ).
In northern Scotland , where wind generation often exceeds local demand , battery storage sites can store surplus electricity cheaply and sell it later when prices rise (‘ arbitrage ’). Energy storage sites store the surplus energy and then earn revenues according to the difference between the wholesale price and offer price . As more wind capacity is added north of the border , these locational dynamics will become even more pronounced and significant .
Batteries will continue to get cheaper
The cost of lithium-ion batteries has fallen steadily over the past decade and will
Supersized batteries : scaling up storage
Capacities of BESS projects will continue to increase . Larger projects are cheaper per megawatt ( MW ) to build , and as the UK continues to add more wind and solar capacity , bigger batteries can capture more of this clean electricity at times when output outstrips demand , instead of it being curtailed .
Locational benefits of BESS emerge
Expect to see the locational benefits of BESS become more pronounced in 2025 and
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