By 2030, the UK’s grid-scale battery storage market is set to reach up to 24 gigawatts (GW) capacity, attracting investments that will likely surpass $20 billion.
In other words, it’s an extremely exciting time to be at the heart of utility-scale battery energy storage systems projects, something that AceOn is delighted to be involved with.
What is a utility-scale battery energy storage system?
Utility-scale battery energy storage systems – also known as grid-scale battery energy storage systems – are renewable energy systems with the capacity to generate and store significant amounts of energy, which can supplement or replace the national grid in the UK.
By 2030, it is projected that the UK will account for almost 9% of all global capacity installations, behind only China, the US, and Germany.
In the United Kingdom, the government creates and harnesses utility-scale battery energy storage via batteries, flywheel, pumped hydro, and even liquid air energy storage, with increases in each technology expected in the coming decade.
Presently, battery storage is the main mechanism for storing renewable energy in the UK, given the ease at which the technology is available and the relatively low cost compared to other means.
The benefits of grid-scale battery energy storage systems
It won’t have escaped your attention that the UK government is striving to meet ambitious Net Zero targets, and battery energy storage systems (BESS) are at the very heart of these targets.
Over the course of the next few decades, grid-scale battery energy storage systems will play an integral role within the UK’s power grid. This will include frequency regulation, voltage support, and power reserve as the UK looks to transition from fossil fuels to renewable sources of energy.
To incentivise the transition, the National Grid has opened five revenue streams for BESS investors to capitalise on:
● Capacity market auction
● Frequency response
● Dynamic containment, dynamic moderation, and dynamic regulation
● Wholesale market
● Balancing mechanism
As a result of these revenue streams, we’re likely to see seismic shifts in the rollout of utility-scale battery energy storage systems in the UK in coming years, with projections showing the immense benefits the technology can have on various key sectors within the UK market.
Why are utility-scale battery energy storage systems important?
We have seen the development and utilisation of small-scale BESS projects in recent years, with many homeowners in the UK adding solar PV and battery systems to their homes for increased independence from the grid.
While this is extremely valuable at the household level, grid-scale battery energy storage systems play the same role at the national and even international levels. At AceOn, we recognise that utility-scale BESS is vital in the transition to a global energy mix that comprises renewable energy generation.
Crucially, grid-scale BESS can deliver a more significant penetration of variable renewable energy into the grid by storing excess energy. It achieves this through a process known as “capacity firming,” which we believe is crucial to the long-term success of renewable energy generation and storage in the UK.
The key to achieving utility-scale BESS in the UK
In addition to residential and industrial battery energy storage systems in the UK, grid-scale BESS can be hugely transformative to the entire energy sector in the UK and beyond.
However, to ensure consistent and reliable energy at the grid scale, front of meter (FoM) is key. This helps to manage and mitigate the problems posed by the intermittent nature of renewable energy, which is often determined by the increasingly unpredictable patterns of weather in the UK.
Grid-scale BESS solutions are capable of storing excess energy generated by renewable sources for use when demand is high. As a result, this alleviates the burden of the National Grid and helps to provide a rounded, renewable energy solution to the UK market.
Increased energy security for the UK market
Going forward, we see one of the biggest benefits of grid-scale energy storage systems as increased energy security in the UK.
Given the war in Ukraine and Russia and other conflicts, recent surges in energy prices have threatened to destabilise the global market, with soaring energy prices in the UK a real pain point for everyone in recent times.
Grid-scale BESS has the potential to increase energy security significantly in the UK and can power large-scale industries like healthcare, manufacturing, and data centres, where power outages would have a hugely negative impact.
AceOn and utility-scale battery energy storage systems
AceOn provide a full project management solution and offer a wide range of battery energy storage systems that can meet any project size as all systems are scalable. AceOn have global partnerships with numerous Inverter and Power Conversion Systems PCS providers such as SMA, Power Electronics, Ingeteam and Delta Electronics which means we can offer a range of large-scale power requirements ranging from 1-5MW per PCS connected to a transformer and MV switchgear if required. We can connect as may of these systems as required as they are scalable to provide utility-scale power systems such as a 50MW or 100MW. AceOn then match their battery storage systems to give the duration that is required, typically a 2 or 4 hour battery is used on utility-scale projects. AceOn can provide air cooled or liquid cooled battery cabinets or battery containers that have already been integrated with the inverter or PCS manufacturers previously mentioned. Currently AceOn provide a 5MWh 20 foot container battery systems as the most energy dense product.
AceOn have partnerships with grid traders that can help you generate revenue from your battery storage assets through the various markets. AceOn also work with DNO’s, IDNO’s, ICP’s, solar & wind installers and funders so that they can provide everything you need for a successful utility-scale energy storage project.
Grid-scale battery energy storage system FAQ
What is grid-scale battery energy storage?
Grid-scale battery energy storage is the ability of governments to produce and store renewable energy at the national level, reducing dependency on the grid while working towards greater energy security.
Does the UK have grid-scale battery energy storage?
Yes, the UK government is prioritising grid-scale energy storage as it transitions towards Net Zero. We are also likely to see significant improvements in grid-scale battery energy storage in the next 10 years.
What are the drawbacks of utility-scale battery energy storage systems?
Right now, the biggest drawback to BESS at the utility scale is cost. However, as investments in renewable energy increase and more emphasis is placed on the benefits of grid-scale battery energy storage in the coming years, this barrier is likely to be removed.