Co-located storage can bid into Capacity Market, Ofgem confirms


Ofgem has published new guidance for companies that want to add storage to renewable energy installations supported under the Renewables Obligation (RO) and feed-in tariff (FIT) schemes. They can bid into the Capacity Market too – if and when it is reinstated.

Adding storage to such RO/FiT sites was not foreseen when the subsidy schemes were set up, so it is not mentioned in legislation, leaving a potential grey area.

Now Ofgem has confirmed that storage can be added without affecting the sites’ accreditation. That should extend to mobile storage, the regulator said.

But applications must be assessed individually and developers will bear the risk of refusal: Ofgem will only assess eligibility once the change has been made.

Storage, however, can have other lines of revenue: because the regulator regards it as separate from the renewable installation, and not supported by the RO or FiT, it can participate in the Capacity Market – if and when it is re-instated. However, generators cannot receive both RO support and CM revenue and will have to choose between the two.

There are considerations for operators. See more detail at our sister site New Power, where this story was originally published.

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