For the first time, battery storage has won agreements as part of the UK’s latest Capacity Market auction, winning over 3.2 gigawatts (GW) of contracts according to provisional auction results.
The UK’s Department for Business, Energy & Industrial Strategy has published provisional auction results for the T-4 Capacity Auction for delivery in 2020/21, which concluded on December 8. Over 52 GW was awarded at a clearing price of £22.50 kW/year, including new gas generation.
However, the big news out of the provisional auction results was the awarding of over 3.2 GW of energy storage contracts, the first time energy storage has won agreements as part of the market wide auction. Specifically, four battery projects which had previously been successful under the National Grid’s Enhanced Frequency Response (EFR) tender were provided with 15-year contracts as new build generators under the T-4 Capacity Auction. These four projects are the 10 MW Cleator and 40 MW Glassenbury projects being developed by Low Carbon, a 49 MW project being developed in West Burton by EDF Energy Renewables, and the 10 MW Blackburn Meadows project under construction in Sheffield by E.ON UK.
“Our homes and businesses need an electricity supply they can rely on all year round. We’ve provided them with that certainty, at a low cost to bill payers, years in advance,” said UK Business and Energy Secretary Greg Clark. “Technological innovation, as part of our low carbon future, will create jobs and opportunities across the UK. We are rebuilding an archaic energy system, bringing forward brand new gas power and innovative low-carbon capacity like battery storage to upgrade our energy mix.
“This is about more than just keeping the lights on. A modern, reliable, and flexible electricity system powers the economy and Britain’s future success.”
Hydropower was also awarded agreements of 711 MW, though the lion’s share was awarded to gas generation.