Scottish Power asks Ofgem to change classification of battery storage within capacity market


batteryScottish Power has proposed a change to the classification of storage within the capacity market. The energy firm says it is misleading to assume storage such as batteries is as reliable as pumped hydro storage.

Current rules assume the same derating factor for both technologies. Scottish Power, which owns the 440 megawatt Cruachan Pumped Storage hydro plant near Oban, says that risks too much or too little capacity being procured via capacity auctions, with batteries taking an increasing percentage of the contracts offered to ensure secure supply margins over winter.

Some 6% of the contracts (3.2GW) awarded in December for delivery from 2020 were awarded to storage providers, with around 500MW to new build battery storage projects.

“Pumped storage has historically shown extremely high levels of availability and has high de-rating figure of 96.29%. Given that battery storage uses an entirely different technology, there is no justification for assuming that the reliability of battery storage is the same as pumped storage,” said Scottish Power’s director of regulation Rupert Steele, in the proposal.

“It will be important to assess independently what level of reliability it is appropriate to assume for battery technology. The impact of inappropriate de-rating factors could be an under or over procurement of capacity, both of which are potentially harmful to end consumers through lower system security (under procurement) or higher costs (over procurement).

“This proposal is therefore in accordance with Ofgem’s principal objective to protect the interests of consumers, including in respect of security of supply. It is also aligned with the CM rule change objectives in facilitating efficient operation and administration of the Capacity Market and promoting security of supply.”

See details here.

Related stories:

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

Capacity market clears at £6.75, guaranteeing power firms £377m

Gigawatts of storage, DSR and CHP win capacity market contracts 

Centrica to start work on 49MW battery plant, calls for local suppliers

Centrica: Battery storage floodgates to open in 2017

EDF tables changes to stop small generators driving down capacity market prices

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

Nissan and Eaton start rolling out commercial scale battery storage 

Somerset site to install ‘grid scale’ Tesla battery unit

Battery storage: Positive outlook or does a correction loom?

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

Ofgem: Energy flexibility will become more valuable than energy efficiency

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

National Grid boss: future of energy is demand not supply

National Grid says impact of solar requires greater system flexibility

Eon opens 2MW battery storage facility

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.


Please enter your comment!
Please enter your name here