UK energy markets regulator Ofgem has amended its electricity generation licence to provide a new, formal definition for electricity storage.
The new categorisation is based on a definition proposed by UK trade body, the Electricity Storage Network (ESN).
It follows on from efforts by the ESN and the wider industry to have energy storage formally recognised in legislation and in the licence conditions.
The absence of any common definition or classification has failed to recognise the unique functionality of the technology, which is able to absorb and inject power into the grid.
This has led, for example, to network charges being applied to energy storage assets for both import and export, so-called ‘double charging’.
Adopting a formal definition of storage ensures that there is a common understanding of how it should be treated, for example in network codes, planning regulation and taxation.
ESN policy lead Madeleine Greenhalgh said: “This is a significant moment for storage in the electricity system and is thanks to several years of work at the ESN to put forward a comprehensive and future-proof definition of storage.
“We welcome Ofgem working to make this change in the generation licence and it is a step forward for the industry.”
She said the next step is to define energy storage in primary legislation.
“When BEIS finds parliamentary time to do so, the key question for the industry will be whether to push for a separate asset class for storage,” Greenhalgh added.
The government and Ofgem committed in 2017 to defining storage in the Electricity Act and in the electricity licence conditions.