Ernst & Young’s (EY) latest Renewable Energy Country Attractiveness Index (RECAI) has ranked the UK battery energy storage system (BESS) market third globally.
The RECAI is a biannual report that ranks countries by how attractive their renewables sector is for investment. The report places the UK sixth, a step up that is partly attributed to increased government funding for the Contracts for Difference (CfD) scheme, which received over £1 billion in the most recent auction round (AR6).
According to EY, growing electrification and the proliferation of renewables will mount challenges to grid management, as well as system adequacy and price volatility. BESS can form part of the solution and investment in the technology is increasing.
The battery energy storage pipeline in the UK has reached 95GW, up 67% from last year. Its battery storage capacity is projected to expand to 24GW by 2030, with upgrades to the National Grid ESO’s Open Balancing Platform (OBP) supporting bulk dispatch of battery storage in real-time.
According to ESO data, approximately half of the battery unit dispatch volume is now being instructed through the OBP.
Further, BESS has been classed as a generation asset in a new energy bill, easing rules around construction and offering specific tariff structures. The UK’s sophisticated energy market design includes a well-established and diverse revenue stack for BESS, and the UK government is committing £20 billion to establishing a world-leading battery industry by 2030.
