Posted on: 07/11/2017
The capacity of Great Britain’s flexible and distributed power generation could hit 25GW by 2030, according to predictions made by Aurora Energy Research.
The company forecast that the growth in batteries and demand-side response would run at 10% a year, with the market set to triple by 2030, generating annual revenues of £3 billion.
Uncertainties standing in the way of growth include the rate at which renewable energy projects will be installed in Great Britain as costs continue to fall.
Other uncertainties include volatile peak prices and the roll out of electric vehicles.
Alternative business models
Ben Irons, Executive Director at Aurora Energy Research, said: “The past few years has seen a substantial increase in flexible and distributed capacity in the Great Britain power system.
“The rapid growth in battery storage capacity could quickly saturate the frequency response market, with prices falling significantly by 2020.
“Battery developers will need to look beyond this to alternative business models such as trading in the wholesale and balancing markets or co-locating batteries with renewables.”