Battery energy storage projects totalling 627.4 MW have secured contracts in the UK’s 2023-24 Capacity Market auction, representing an increase of more than 60% compared to the previous round, the National Grid Electricity System Operator (NGESO) announced last week.
The T-1 Auction was concluded on February 14 with the goal to ensure that the country has sufficient electricity capacity for the target period. A total of 5,782 MW were procured from a target of 5,800 MW, including 2,620 MW from gas-fired power plants, 1,412 MW from nuclear facilities and 413 MW from lignite stations. Onshore and offshore wind together secured 65 MW.
The projects were cleared at a price of GBP 60 (USD 72.25/EUR 67.56) per kW a year, lower than in the T-1 capacity auction held in 2022 when the price cap reached GBP 75/kW a year.
For battery energy storage schemes, the allocated capacity represents an increase from 385 MW of awards in the previous round. Overall, the technology accounted for 10.9% of the total awarded capacity, with 74 battery storage cell management units (CMUs) receiving contracts.
According to provisional auction results released by NGESO, almost half of the winning battery projects propose one-hour duration systems, while about 40% are for two-hour facilities.
The list of winning schemes includes Zenobe, Gresham House, Harmony Energy, Pivot Power and SUSI Storage, among others. It is available here: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1137294/auction-monitor-report-t1-delivery-year-2023-2024.pdf
(GBP 1.0 = USD 1.204/EUR 1.126)
Choose your newsletter by Renewables Now. Join for free!