Energy storage to be reclassified in Electricity Act as government backs smart grid


Energy storage is to be reclassified within the Electricity Act to address issues including double charging. The move is among a raft of government proposals designed to facilitate the shift towards a smart energy system, or smart grid.

As part of those plans, distribution network operators (DNOs) will not be allowed to own storage, as government and regulator feel that would distort market outcomes. Meanwhile, the department for business, energy and industrial strategy (Beis) said it will also set out how storage can be collocated with renewable generation without jeopardising existing subsidies for such plant.

Beis said it will also commission a feasibility study to look at local flexibility markets and how these might work. Potentially, in some cases, without DNOs needing to be involved in providing price signals.

The paper also suggests mandatory half hourly metering and settlement down to household level is on the cards, although the timing on that decision has been pushed back. Such a move would fire the starting pistol for domestic demand-side response markets and Beis plans to launch a domestic DSR competition in Autumn 2017.

To open up the domestic market will require responsive household goods. Beis said it would drive industry to collaborate with the EU and US on standards and interoperability for smart devices, as well as setting standards for electric vehicle charge points.

See the document here.

Related stories:

Government to launch £45m battery research institute

Greg Clark calls for carmakers and energy industry to collaborate on battery storage

National Grid slashes long-term estimates for battery storage

Energy storage ‘will wipe out’ battery storage

Can blockchain unlock demand response?

Government backs batteries and AI to crack smart grid conundrum

Artificial intelligence for smart grids: Can UK start-up beat Google?

Forget blackout Britain, flexibility will solve capacity issue

Nissan turns on 4.75MW solar plant, eyes battery storage market

Somerset site to install ‘grid scale’ Tesla battery unit

Tesla: People don’t engage with energy bills, but they will have to

Vattenfall plans 22MW battery storage facility at South Wales wind farm

National Grid awards £66m of battery storage contracts

VLC Energy to connect 50MW of battery storage in 2017 after EFR contract win

Battery storage: positive outlook?

National Grid must provide a plan for battery market, says SmartestEnergy

National Grid signs 20MW demand-side response contract with battery storage operator

Open Energi and Camborne Energy Storage take Tesla battery into frequency response market

Scottish Power asks Ofgem to change classification of batteries in capacity market

Centrica: Floodgates to open on battery storage this summer

UK Power Networks receives 12GW of battery storage applications in 15 months

Capacity market too low for large gas, but gigawatts of DSR, batteries and CHP win contracts

Infrastructure chief: UK could be energy storage world leader if government acts now 

Government backs Adonis’ smartgrid plan, pledges £50m+ for storage and demand response

More than half of I&C firms mulling energy storage investment

National Grid says UK will miss 2020 targets, predicts big battery future

Eon opens 2MW battery storage facility

Hot technology: energy storage via heat battery

Free report: DSR and battery storage

Click here to see if you qualify for a free subscription to the print edition of The Energyst, or to renew.

Follow us at @EnergystMedia. For regular bulletins, sign up for the free newsletter.



  1. Encouraging the use of battery storage and localised on-site generation is to be welcomed, as this will be a key part of the UK’s future energy mix. However, the Government still lacks any coherent energy strategy and there is very little in place to help consumers now. The gap between the ‘big six’ energy companies’ fixed price deals and their standard variable tariffs has widened by more than half since November.

    It’s time for Ofgem to take action to help customers. A campaign to encourage more people to switch, especially the large number of small businesses who are still on standard variable tariff, is urgently required. A price cap isn’t the solution as energy suppliers will compensate for their lost ability to charge customers on more expensive tariffs by instead increasing the prices paid by those on the lowest rates.

    Ofgem needs to act now to increase awareness and make it easier and more transparent for customers to switch.

    – Phil Foster, managing director, Love Energy Savings


Please enter your comment!
Please enter your name here