UK's 200-MW storage tender presents new opportunity for solar developers

A tender by UK's National Grid plc (LON:NG) for 200 MW of enhanced frequency response is seen by solar developers as an opportunity to move into energy storage, says Clean Horizon.

The UK grid operator earlier this month launched an invitation to tender for the new service that is designed to improve its ability to manage the grid against the backdrop of a changing generation mix and a growing renewables penetration. The invitation is to pre-qualified parties after in September 2015 it sought expressions of interest in the provision of the service. The deadline for applications is June 17, with the results due to be published in August.

French consultancy Clean Horizon said the tender was perceived by solar developers as an opportunity to enter energy storage -- an emerging activity close to their competencies, -- in the face of subsidy cuts that make solar development less attractive.

It also said that the contracts to be awarded by National Grid for the 200 MW of energy storage assets would very likely provide a favourable business case for large-scale storage in the UK.

In a study the firm analyses the different emerging revenue streams associated with energy storage in the country -- residential batteries, grid-scale projects and systems for commercial and industrial applications.

"This survey confirms our intuition that energy storage is bound to play a major role for renewable integration in Great Britain," said Clean Horizon chief executive Michael Salomon.

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