Polling of English councillors and public finds high level of support for new renewable projects despite scepticism of Government targets

New polling commissioned by Root-Power, a leading Battery Energy Storage System (BESS) specialist, and undertaken by Savanta, has found that over half (58%) of the English public think that decarbonising the energy grid by 2030 is unlikely, with a quarter (24%) believing it to be very unlikely.

The grid decarbonisation target forms part of the Government’s Clean Power 2030 plan, which also includes ambitions to double onshore wind capacity, triple solar generation and quadruple offshore wind generation. The public were also hesitant about the Government’s ability to meet these targets:

• 40% believe it is unlikely that the Government will meet its target to double onshore wind capacity
• 44% believe it is unlikely that the Government will meet its target to treble solar generation
• 46% believe it is unlikely that the Government will meet its target to quadruple offshore wind generation

The research also polled English councillors, who are often responsible for approving new renewable projects in their areas. Their scepticism of the Government’s clean power targets was even higher, with over three quarters (77%) believing it’s unlikely the energy grid will be decarbonised by 2030 and 40% believing it to be very unlikely. Of these, almost half (49%) of Labour councillors believe the Government’s target is unlikely to be achieved.

Neil Brooks, Managing Director at Root-Power said: “It’s clear that both the public and councillors understand the scale of the challenge that the Government has set itself to reach the Clean Power 2030 milestones. Achieving these targets will be no mean feat, and positive action has already been undertaken to clear the grid connection queue of zombie projects that would have made it near on impossible.

These actions cannot be taken in isolation and we  need a serious acceleration of approval, construction and connection of new renewable projects across the country to show people that these targets can be met.”

Despite the scepticism, the public are in favour of new renewable projects and infrastructure in their area:

• 57% would support a solar farm, rising to 68% if it contained battery storage
• 58% would support an onshore wind farm, rising to 65% if it contained battery storage
• 59% would support an offshore wind farm, rising to 66% if it contained battery storage
• 59% would support energy transmission infrastructure, such as pylons and substations

Neil added: “We often hear a lot in the news and from some political leaders about the public objecting to new energy infrastructure in their area, with pylons becoming a particularly hot topic in recent months. These results demonstrate that the public is far more on-board with new projects that perhaps they are given credit for, or that a more vocal minority would have you believe.

However, there is clearly still work to be done to ensure we bring everyone with us in the transition to clean power. The Government’s proposal for communities hosting new energy infrastructure to receive money off their energy bills is a positive step to doing this, but responsible developers should always be looking to ensure projects bring clear community benefits to bring communities with us on this journey.”

In July, the National Grid Electricity System Operator (ESO) proposed changes to the Capacity Market (CM) de-rating factors methodology to a ‘Scaled Equivalent Firm Capacity’ (EFC) approach. The first time they will be in use will be for the T-1 and T-4 CM delivery years.

The EFC approach is a method used to determine the reliable capacity contribution of a variable renewable energy source – such as wind or solar – by calculating the amount of firm, conventional generation it can replace while maintaining the same level of system reliability. This approach quantifies the contribution of renewables in terms of the equivalent amount of reliable, dispatchable power they provide to the grid.

A de-rating factor is a reduction applied to the nominal capacity of electrical equipment or power systems, such as those managed by the National Grid, to ensure reliable performance under varying operational and environmental conditions. It assumes that nameplate capacity may not be available when its needed – for example, for solar, this could mean the system producing significantly less power due to reduced sunlight on a cloudy day.

Making the market more competitive

Years had passed with the de-factoring calculating methodologies largely being unchanged – however, at the time of their inception in 2017, the UK Battery Storage Database report from 2017 shows installations for large-scale battery storage only reached 100MW of capacity across the UK. As the Battery Energy Storage Systems (BESS) sector was still in its infancy compared to today, the ESO de-rating factors assessment mostly focused on pumped hydro.

Under the old methodology, the ESO published its de-rating factors assessment for duration limited storages. Those with a smaller energy duration were penalised more than those with a larger energy duration. This allowed asset owners to get creative by entering their batteries at a higher duration than the nameplate. They could enter a battery at 1MW for nine hours rather than 9MW for one hour. The energy received by the grid is the same in both examples, but the higher duration was penalised less under the previous system.

The proposed changes to the EFC approach are good news for battery storage in the CM auctions. This is because the proportion of the asset’s capacity that is paid under a CM contract will increase due to changes in the de-rating factors. This will tip the scales in time as more assets will count towards ESO’s overall procurement volume, therefore marking the market a more competitive space.

Extended Performance Testing

Extended performance testing (EPT) is a demonstration of the asset’s capability to deliver its CM obligations (power and duration) if it secures a CM contract.  The threshold for passing this test is >= 95% of the full nameplate capacity, not its de-rated one – which is typically much lower.  So, a 50MW/100MWh BESS needs to demonstrate a minimum of 47.5MWs (95% of nameplate) over a two-hour period. If it’s secured a two-hour CM contract, then this test is repeated every three years – usually in the winter months.

For a reasonably new asset, EPT is not a problem as it is able to deliver this comfortably. For an older asset, this becomes more difficult.

Batteries degrade over their useful life, which creates a problem for asset owners. A battery may be considered ‘end of life’ when it’s somewhere between 60-65% of its beginning of life capacity.

At this point, a 100MWh battery is now somewhere between 60-65MWh, and it can no longer meet the CM obligations of 50MW for two hours. If an asset has a 15-year CM contract, and degradation hasn’t been factored, there is a risk of defaulting, and the contract would be terminated.

An asset owner could consider bidding their asset on the degradation towards the end of the capacity warranty. However, this approach is counterintuitive for asset owners, as it leaves potential additional capacity on the table that ultimately cannot be optimised in this way.

Another option is to turn to the secondary market to ‘trade’ the capacity shortfall to a different Capacity Market Unit (CMU). Under the previous system, it could lead to unnecessary termination of CM contracts, or a reduction in volume so the EPT could still be passed.

The purpose of the CM is to strengthen the UK’s energy resilience. So, if the additional volume is being left outside of a contract, it will not help to strengthen energy resilience in the UK.

Removing uncertainty for BESS asset owners

This year, the UK Government outlined changes to the Capacity Market Rules. Previously, Capacity Market rules were understood to outline that, once a generating unit had prequalified for the CM, no changes could be made to that Capacity Market Unit (CMU). Although, it was later clarified that a battery could be augmented.

In the CM rule updates in July 2024, there is now updated guidance around the original rule that removes any ambiguity. Rule 4.4.4 now includes wording specifically for batteries. The new rule definition allows for augmenting and repowering of the Battery Energy Storage System (BESS).  This is welcome news for BESS asset owners because it removes all uncertainties that existed before.

Most conscientious asset owners will be thinking of the ‘end of life’ from the beginning of life, such as when to consider replacing the batteries, or augmenting them. However, it’s not that straightforward, and considerations need to be made from the start of the project in the planning and procurement stages.

The recent changes to the UK Capacity Market, including the introduction of the EFC approach, and changes to EPT testing, present a promising opportunity for BESS asset owners. The changes offer enhanced revenue potential and a more stable investment environment as energy storage becomes increasingly critical in the UK’s energy transition.

Recently, the government announced proposed revisions to the National Planning Policy Framework (NPPF) to help achieve sustainable growth in the UK planning system. Now, the UK’s battery storage sector stands on the cusp of a transformative era, fuelled by the Labour Government’s ambitious commitment to establishing the nation as a “clean energy superpower by 2030.”

A record-breaking funding package, dedicating over £1.5 billion to homegrown clean energy projects aimed at bolstering the UK’s energy security, was also announced. The substantial investment promises to catalyse the development of new green infrastructure, essential for achieving clean power within the decade.

The Government’s broader growth agenda focuses on cutting bills, creating jobs, and delivering energy security through cheaper, zero-carbon electricity. This presents a wealth of opportunities for the battery storage industry. As the UK accelerates towards its net-zero goals, the synergy between renewable energy expansion and battery storage will be crucial in ensuring a reliable, resilient, and sustainable energy future.

Increased support for wind and solar

The latest revisions to the NPPF encourage the development of additional wind and solar projects. These onshore renewable technologies are cost-effective, efficient, and rapidly deployable, making them essential elements of the energy portfolio. Combined, they represent more than half of the UK’s renewable electricity generation capacity.

The Planning Act 2008 determined the threshold for which solar and onshore wind projects are considered Nationally Significant Infrastructure. Previously, it stated that consenting decisions in respect of solar and onshore wind projects with a generating capacity of more than 50 megawatts (MW) would be determined by the Secretary of State under the Nationally Significant Infrastructure Projects (NSIP) regime, which would often see developers bring forward projects just under 50MW. Now, updates to the NPPF proposed would increase the threshold at which solar and onshore wind projects are determined as Nationally Significant to 100MW and 150MW respectively. In proposing to increase the threshold, smaller, less complex projects would be permitted to move through the planning process quicker and at a lower cost.

As many acknowledge battery storage as complimentary to wind and solar, increased support for the two will potentially see increased support for Battery Energy Storage Systems (BESS) in the UK. When the sun isn’t shining and the wind isn’t blowing, the UK will need to rely on BESS and its ability to capture and store this energy and purposefully deploy it, subsequently increasing the value of clean energy by increasing production and potentially reducing costs.

With the Labour Government committed to removing barriers and facilitating the biggest upgrade to the UK’s national transmission infrastructure in a generation, it’s essential to investigate how BESS can help get us there.

Encouraging a broader adoption of BESS in the UK

As the UK Government continues its investment towards achieving its energy goals, BESS will play a crucial role in balancing supply and demand. It’s estimated that technologies like BESS, which support the integration of more low-carbon power, heat, and transport technologies, could save the UK energy system up to £40 billion ($48 billion) by 2050, ultimately lowering energy bills for consumers.

Recent years have seen a significant surge in the pipeline of BESS projects, primarily driven by legislative changes and cost reductions. In December 2020, the law was amended. It now allows local planning authorities to determine projects with capacities exceeding 50MW in England and over 350MW in Wales – a process previously managed solely by central government, which was lengthier and more complex.

Despite this rapid growth, several barriers still hinder the broader adoption of BESS technology. Although, with the proposed updates to the NPPF, we will hopefully see greater levels of renewable generation, which in turn can generate a greater need for BESS.

The value of flexibility, and consequently electricity storage, must be reflected in energy markets. This is crucial for achieving further deployment of electricity storage and operating a zero-carbon electricity system.

Promoting the vale of battery storage

As the transition to a renewable energy landscape continues, batteries emerge as the most adaptable solution for stabilising the intermittent nature of wind and solar power generation. To fully leverage the benefits of BESS, the UK energy sector must advocate for their value in the energy transition, raise consumer awareness, and push for planning reforms to accelerate adoption and encourage investment opportunities.

With these thoughts in mind, the UK – alongside Labour’s commitment to bringing cheaper, cleaner power, energy security and jobs to every corner of the country – is well positioned to become a world leader in BESS.