Ramping up investment in energy storage could cut curtailed wind output in Great Britain by as much as 50%, according to energy analytics outfit LCP.
Based on current wind power capacity, LCP estimates an extra 20 gigawatt-hours of battery storage could reduce the amount of wind power wasted by up to 50%.
The company predicts that by 2025, wind curtailments between Scotland and England will cost consumers £1bn per year, a figure that it said is likely to grow if the government’s 40GW offshore wind target is met.
LCP’s analysis shows that wind was curtailed in Great Britain on 75% of days in 2020, with over 3.6 terawatt-hours of wind being turned off in total, mainly due to network constraints.
This volume of wasted wind power is enough to have powered over a million homes for a whole year.
LCP partner Chris Matson said: “Energy storage will play a crucial role in helping to decarbonise the power system, by balancing the grid in real time and backing up renewable generation.
“The increase in renewable energy capacity, without increases in network capacity or flexible technologies, will result in increasing volumes of renewable energy being wasted, with costs ultimately falling on consumers.
“This issue needs to be tackled urgently if the UK is to meet its net zero targets.”
The analysis coincides with a new report from LCP, titled ‘Is battery storage a good investment opportunity?’.
The report examines the main revenue sources available to investors from battery storage assets, how these markets will change over time and the opportunities for power traders.
Matson added: “Spending on the UK’s energy storage infrastructure is likely to rise over the coming years.
“As the system changes and technologies mature, we expect the business case for battery storage to change in part due to their unique capabilities allowing them to provide value in multiple markets.
“Due to their flexibility, battery storage assets will continue to provide value in the balancing and frequency response markets.
“Over time, arbitrage opportunities are expected to grow as renewable penetration drives increases in price spreads.
“Capacity Market prices are also expected to increase, and longer duration battery storage assets will capture more of this value due to their higher de-rating factors.”