LCP Delta is a UK energy consultancy, with a particular interest in advising clients investing in, or navigating renewable energy transition. It published a report on the UK battery storage market at the end of 2023. This document attracted considerable interest, and so we decided to curate its future view on batteries here.
Highlights of the 2023 Future View on Batteries
The United Kingdom could potentially save the equivalent of US$30 billion, if it follows its government’s renewable energy lead. This is despite declining energy revenues in 2023, after record highs the previous two years.
This promising future view on batteries relies on the British government continuing to promote mega-size batteries for large-scale energy storage. The dynamic as we understand it would be as follows:
- Store surplus, relatively cheap renewable energy when grid demand is less than available supply.
- Deliver this energy to the grid when demand is greater than available supply, and pocket premium prices.
However, LCP Delta forecasts the UK will need longer battery discharge times of at least 12 hours, as peaking stations phase out. Bloomberg believes this arrangement could save the UK the equivalent of US$30 billion between 2030 and 2050.
Thought-Provoking Insights into UK Energy Mix
The UK is moving towards decommissioning three of five nuclear plants, as they approach their end of design life. Plans are afoot for new ones, but these could take a decade to reach fruition.
Meanwhile, LPC Delta’s future view on batteries in the UK includes these thought-provoking statistics:
- The UK energy system could be producing excess renewable and nuclear energy during up to 64% of the hours.
- Over 50% of over-under supply periods will last more than 24 hours, with over 25% lasting more than 48 hours.
Therefore, LCP Delta concludes, ‘United Kingdom will need technologies that are able to flex their demand and supply over extended periods. These will be far longer than current battery storage capabilities.’
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