The UK government is to use primary legislation to remove a key regulatory barrier for energy storage by defining it as distinct from other forms of generation.
The measure is one of 29 recommendations set out in BEIS and Ofgem’s ‘Upgrading Our Energy System’ roadmap published in response to last year’s ‘A Smart, flexible energy system’ call for evidence.
Changing the definition of storage would make it easier for developers to own and operate grid-connected batteries.
BEIS will amend the Electricity Act 1989 and other relevant legislation to explicitly define electricity storage as distinct.
The government will also engage with industry, local planning authorities, the devolved administrations and other relevant bodies to review the planning framework for storage.
Ofgem will meanwhile consult on a modified generation licence for storage with the aim of it being introduced by summer 2018.
Other measures set out in the roadmap include clarity from Ofgem by the end of this year on network charges on storage.
Storage stakeholders have long argued the technology should not face demand residual charges at transmission and distribution level plus two sets of balancing system charges.
Ofgem will also publish later this year guidance for renewable generators wanting to co-locate storage.
Some renewable generators receiving support under the RO, CFD, or FITs schemes are concerned they may put their accreditation at risk if they apply to install storage assets on the same site.
BEIS Secretary Greg Clark said the roadmap forms a core part of the UK’s industrial strategy.
“A smarter energy system will create opportunities to reduce energy costs, increase productivity and put UK businesses in a leading position to export smart energy technology and services to the rest of the world,” he added.
Image: Battery storage (AES)
