Developers of Battery Energy Storage System (Bess) have written an open letter that argues with the support schedule for long-term energy storage (LDES) of the Long-Duration Energy Storage (LDE).
It quotes an LCP Delta report, Value from long-term Bess to the GB power systemHe claims that although Bess is long-term Bess cheaper for the system, market signals do not sufficiently support BESS projects to build in the long run without the cap and floor.
The report is used as evidence in the letter to OFEM, the government, the Ministry of Energy Security and Net Zero (DSNZ) and the National Energy System Operator (NESO).
According to the open letter signers, who represent a collective 37% of the 5.3GW operational storage capacity of the VK, although Lithium-ion technologies are now able to apply for the LDS support schedule, the Technical Decision Document (TDD) has still published BESGES for Bess. In March.
When the support schedule was first driven, the government suggested that the technologies for electricity storage that can already be financed under existing market conditions-such as Lithium-ionbattering energy systems (BESS) “-should be excluded.
Of the 96 respondents of the first consultation, 39 ‘not agree’ were given answers, and that it was clarified that that Projects would not be excluded “exclusively based on their technological type”.
The government said that eligible technologies “may include new iterations of lithium ion batteries that have been specifically developed for long-term electricity storage, as long as they also meet the other suitability criteria that apply”.
However, the open letter argues that Bess will be biased because the scheme will distort the market for a shorter duration Bess, which will not have income support on the way for longer projects. LCP Delta estimates that this causes a reduction of 12% in the company margin for shorter duration.
Bess ‘very likely’ competitive at 20h+ duration
The Open Letter claims that the analysis of DSNZ uses outdated cost recansions to support the LDES TDD, and that the methodology of LCP, using the battery prices of the beginning of 2024, makes it “most likely” that BESS projects would be competitive in the duration of 20 hours and higher projects.
This builds on an argument that in February the EU -ueu in the and storage summit made by James Mills from Adaptogen Capital (one of the letter signatories). He said that there is “no doubt” that the difference between today’s energy system and the 2030-40 system will be that “We have to push battery storage in 10h+ expensive”.
At the time, he said that this would be completely feasible, because of the speed of change in Bess technology and the cost curve.
Bess -Exclusion threatens CP30 goals
The TDD focuses on pumped storage hydro (PSH), which has longer lead times, and other technologies that are not yet commercially viable.
Duncan Stone, Deputy Director of Smart Electricity Systems at Desnz, said that It is expected that more LDES will come online after 2010what the target year is for a clean power system; The Government’s Clean Power 2030 Action Plan (CP30) has a target of 4-6 GW LDES by that time.
LCP discovered that the CP30 target of 23-27 GW storage capacity is threatened in a short duration by Bess that is excluded from the cap and floor, because the minimum endurance element incentives to build under the minimum supported duration.
According to the schedule, Stream 1, for adult technologies, a technology level level (TRL) of 9 and the minimum project size is 100 MW. For Stream 2, new technologies that request support must have TRL 8 and a minimum size of 50 MW.
According to the report of LCP Delta, this shift leads to a lower operational margin of 10-12% for Bess of two hours and four hours, resulting in an 8GW reduction of the total one, two and four-hour BESS-BUILD outside the cap and floor.
The Letters signatories Are: Ben Guest, director of Gresham House Energy Transition; Peter Kavanagh, CEO of Harmony Energy; James Basden, founder of Zenobē; Amit Gudka CEO of Field Energy, Elias Saba, CTO of Eku Energy; James Mills, director of Adaptogen Capital; and Russel Alton, CEO of Voltwise Power.
They state: “Our industry has taken over Bess about other technologies because they are the most reliable, commercially viable and cost -effective technology, and with the greatest potential for lower costs due to continuous fast innovation.
“As experienced investors who have invested billions in the energy transition, we are clear that the alternative – the government tries to choose winners – is sending a signal that the UK is closed for inward investments and fair competition.”
