Investors need more confidence in the future direction of battery storage to enable the sector to achieve its full potential, according to an industry report.
The Electricity Storage Network group says the Government should set a clear signal for how it sees the trajectory for storage over the next decade.
A report published by the group highlights a number of key barriers which exist including the lack of a legal framework. It sets out a number of recommendations to enable further growth in a sector which it says now has almost 4GW of capacity connected to the network with a further 9GW in the planning system.
“At present storage is, by default, treated as a subset of generation, with rules tweaked to make them more appropriate for storage. We believe that without a legal framework, storage is stuck in limbo and must therefore be included in the electricity licence framework,” says the report.
“The Government is supportive of storage and recognises its role in the net zero transition, but we need a longer-term plan that gives the whole industry, including investors, confidence in the direction of storage over the next few years.”
The call came as a separate study forecast dramatic growth in energy storage across Europe to help networks cope with growing levels of variable renewable generation.
Reducing technology costs are expected to help energy storage capacity to grow from 3GW in 2020 to 26GW in 2030, and then to 89GW by 2040, according to Wood Mackenzie. The report also forecasts that gas peakers will also “have a good decade complementing the renewable power system.”