Widespread battery use in the British electricity grid will be “credit positive” for transmission network operators by allowing them to integrate renewables at lower cost, providing opportunities for outperformance and slowing the growth of customer bills, argues credit rating agency Moody's in a report.

The report said batteries will ease the pressure on balancing costs from rising renewable penetration as wind and solar generating capacity continues to increase

“National Grid will face escalating cost and challenge in maintaining a stable transmission network. Battery storage and other sources of flexibility will allow far larger amounts of renewable capacity to be integrated at costs around current levels,” it said.

Benefits for system and transmission operators

The report argues that a lower-cost grid provides direct and indirect benefits for system and transmission operators.

“National Grid will earn modest incentives for keeping the national transmission grid in balance, and all three transmission owners will benefit in the near-term from delivering grid reinforcement at lower cost,” it pointed out.

Graham Taylor, Vice-President -- Senior Credit Officer at Moody's, said:

"Battery storage is a credit positive for the UK's electricity transmission network operators as it will allow renewable energy to be integrated in a more cost-efficient way.

"By reducing the need for payments to wind and solar generators when there is insufficient grid capacity, and by allowing for lower investment in new generation connections and grid reinforcement, battery storage will slow the increase in customers' energy bills that could otherwise trigger political or regulatory intervention," he added.

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