BESS in GB - Getting to 3 gigawatts with Wendel Hortop (Markets Lead @ Modo Energy)
Aug 2, 2023
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Wendel Hortop, Markets Lead @ Modo Energy, discusses the size of GB battery fleet, differences in UK market, revenue generation by batteries, and the changing operations of batteries as more capacity comes online
The British battery market has reached a significant scale driven by private companies and disruptive private equity firms, without specific government subsidies, and is globally leading in terms of battery storage capacity.
The future for batteries in the UK includes trading in balancing mechanisms, responding to more volatile energy markets, and exploring new products and revenue opportunities.
Deep dives
The Scale and Maturity of the British Battery Market
The British battery market has reached a significant scale, with new battery projects being built at a scale comparable to other traditional forms of energy generation. The market has matured both in terms of its scale and the recognition of batteries as a form of energy infrastructure in the regulatory framework. Large energy majors and private companies specializing in battery storage are investing in battery projects. The UK has reached three gigawatts of grid-scale battery storage capacity, which can contribute a substantial amount of power to the grid, equivalent to keeping the lights on in about a tenth of all British homes.
The Companies and Factors Driving the Growth of Batteries
The growth of the battery market in the UK has primarily been driven by private companies and disruptive private equity firms, rather than traditional energy infrastructure builders. These companies have been following the growth of battery storage, starting from small-scale batteries and now constructing projects as large as 100 megawatts. The UK is globally leading in terms of battery storage capacity, with only China and the US having more. The growth of battery storage in the UK has been achieved without specific government subsidies, relying on the value generated from market participation.
The Market Dynamics and Future Outlook for Batteries
While frequency response has been a significant market for batteries, allowing them to help maintain grid stability, the market for batteries is expected to evolve. The excess energy trading model, where batteries buy cheap energy during low-demand periods and sell it at higher prices during peak demand, has not been the main market for batteries so far. Batteries in the UK have demonstrated their ability to generate significant revenues through frequency response contracts. However, the market dynamics are changing, with increased competition and oversupply, resulting in a shift towards wholesale trading and other market opportunities. The future for batteries in the UK includes trading in balancing mechanisms, responding to more volatile energy markets, and exploring new products and revenue opportunities.
Great Britain recently reached 3 gigawatts of installed battery storage - a milestone in the buildout pipeline, but how has GB got to this point? What has the road looked like in getting to this point, and with still a long way to go - what might the future look like for batteries in an increasingly saturated market?
Today’s episode is a little different - Neil and Wendel take a look at the state of battery buildout and what is going on in energy markets in Great Britain.
Over the course of the conversation they discuss:
What does the size of the GB fleet look like currently, and who has played a role in getting it to this stage.
How is the UK different from other markets around the globe?
A look at how batteries have typically been making revenue so far.
How is the way batteries operate within markets going to change as more capacity comes on line?
About Modo
Modo is the all-in-one Asset Success Platform for battery energy storage. It combines in-depth data curation and analysis, asset revenue benchmarking, and unique research reports - to ensure that owners and operators of battery energy storage can make the most out of their assets. Modo’s paid plans serve more than 80% of battery storage owners and operators in Great Britain.
To keep up with all of our latest updates, research, analysis, videos, podcasts, data visualization, live events, and more, follow us on LinkedIn.
If you want to peek behind the curtain for a glimpse of our day-to-day life in the Modo office(s), check us out on Instagram.
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