5 Factors Driving Influence in the Energy Storage Market

In the dynamic realm of the energy storage market, the United Kingdom has undergone a remarkable transformation over the years – evolving from a modest four pumped hydro plants to a robust network of 115 battery energy storage (BESS) plants.

The full landscape is further explored in our latest report – Utility Scale Energy Storage – UK 2023-2027.

Delving into key statistics and emerging trends, the report outlines the current state of energy storage, identifies key players entering the market, explores diverse technological opportunities, and more.

As the energy sector stands at the crossroads of innovation and sustainability, this report serves as a beacon, illuminating the trajectory of the UK’s energy storage future.

Energy Storage Market: A Brief Overview

Prior to 2016, the UK’s utility energy storage amounted to just four pumped hydro plants (2.8GW max output). As of Q3 2023 there are 115 battery energy storage (BESS) plants (3.7GW max output).

However, energy storage capacity of pumped hydro is around 19GWh compared to 4.3 GWh for BESS. This difference is due to pumped hydro’s superior storage duration.

Key Future Players in the Energy Storage Market

The UK energy storage market has reached a point whereby the number of new entrants is forecast to increase to include:

• Major energy companies
• Independent power producers
• Ambitious start-ups
• ESG funds
• Renewable energy developers and originators

Technology Opportunities for Utility-Scale Storage

While BESS and pumped hydro account for all utility-scale storage in the UK, there are substantial opportunities for other technologies e.g. ‘green, hydrogen, thermal energy storage, gravity storage, compressed-air energy storage and liquid air energy storage.

Net Zero and Utility-Scale BESS

To meet Net Zero, there seems to be a consensus that up to around 30GW of utility-scale BESS capacity is needed. However, changes to National Grid’s connection policy at the end of 2023 will also impact upon investment decisions in current and proposed projects.

Pumped Hyrdo Schemes

There could be at least 3, possibly 4, pumped hydro schemes that will go ahead during the period 2025-2031, thereby increasing cumulative generation from 19GWh to over 90GWh, near the 2035 National Grid’s target of 100GWh of non-battery storage.

Quote from the Editor:

National Grid and other DNOs face a challenge of building five times more infrastructure in the next seven years than in the last thirty, to facilitate a more flexible grid and connect green energy projects.

With grid flexibility comes the challenge of stability. Solar and wind power is intermittent, meaning energy storage is crucial.

Pumped hydro is the global leading grid storage, but battery energy storage systems (BESS) are rapidly increasing in number as more developers and investors seek to address Net Zero and its financial incentives.