1 Jul 2014
Business models for storage deployment in GB
The conventional GB electricity market model of large scale, controllable, thermal generation operating to meet predictable patterns of demand is becoming less relevant as the penetration of low carbon generation technologies increases and the advance of ‘smart’ technologies changes patterns of consumption.
The future market has an increased need for flexibility of both supply and demand to manage the variability of intermittent generation and more dynamic patterns of consumption. Storage offers one possible source of flexibility, absorbing or releasing energy to smooth intermittent generation patterns and demand variability. It can also help to manage the implications of potentially more variable patterns of consumption for the grid, offering an alternative to conventional network reinforcement.
In collaboration with Swanbarton, Pöyry Management Consulting has released a report prepared for Elexon that focuses on business models for electricity storage in GB and their interactions with the trading and settlement arrangements.