20/07/2021 | Energy storage

Smart Systems and Flexibility Plan offers opportunities for UK to lead in innovative technology

20 July 2021 - RenewableUK press release


Commenting on the the Smart Systems and Flexibility Plan and Energy Digitalisation Strategy published today by the Department for Business, Energy and Industrial Strategy and Ofgem, and the call for evidence on large-scale and long-duration electricity storage, RenewableUK’s Director of Future Electricity Systems Barnaby Wharton said:


“We welcome the publication of the Smart Systems and Flexibility Plan and the Government’s commitment to address the policy and regulatory barriers for flexible technologies like grid-connected storage over the coming years. Flexible technologies are vital to meet the Government’s targets, including integrating 40GW of offshore wind by 2030, as well as helping to deliver 5GW of hydrogen and 18GW of interconnector capacity by 2030. Flexibility is not only making the transition faster – it also makes it cheaper and more reliable.


“Carbon signals have a key role to play to incentivise investment in low carbon flexibility. We welcome the ambition to review the gaps in current carbon policies in the Plan. A common approach to carbon pricing across all markets would drive the transition from fossil fuel-dominated balancing markets to much more coordinated low carbon flexibility services.


“The Energy Digitalisation Strategy should look to allow all system users to send and receive the right signals, incentivising the right behaviour from consumers and flexibility, enabling greater take up of renewables.


“Green hydrogen generated using electricity from offshore wind will play a key role in our future energy system, offering flexibility to the grid as it’s available any time on demand.  With the right level of support from Government, costs will continue to fall over the course of this decade just as they did for offshore wind, making renewable hydrogen a cheap energy source for consumers.


“Other cutting-edge technologies like compressed air energy storage will provide an even greater range of flexibility. Lithium-ion batteries are scaling up incredibly fast, with a number of 50MW projects in operation in the UK and a total of more than 1.25GW of battery capacity installed so far. Looking ahead, projects with a capacity of 250MW have already been already consented. This will continue to accelerate if we can get access to capital at lower costs, alongside more stable revenue streams and a reformed network charging regime for access to the grid. In addition to all this, building more electricity interconnectors with other countries will enable us to sell our surplus power abroad”.   


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Notes


RenewableUK’s members are building our future energy system, powered by clean electricity. We bring them together to deliver that future faster; a future which is better for industry, billpayers, and the environment. We support over 400 member companies to ensure increasing amounts of renewable electricity are deployed across the UK and to access export markets all over the world. Our members are business leaders, technology innovators, and expert thinkers from right across industry.


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