Giants of the UK energy sector are to work within a new collaborative group aimed at enabling significant cost reductions for the electricity system through the use of energy storage applications.
The Energy Systems Innovation Platform (ESIP) has been unveiled today by emissions reduction advisory group, the Carbon Trust and brings together utilities Centrica, DONG Energy, SSE, Scottish Power, Statoil and Wood Group’s Clean Energy division.
The companies will work together to solve what they see as “key issues” currently preventing a more cost effective transition to a low carbon energy system by developing new business models.
Andrew Lever, director of innovation at the Carbon Trust, said: “There is now general consensus that the UK energy market needs to be revamped so we can embrace a flexible and more decentralised energy system. However, the fragmented nature of the energy market is driving fragmented decision making and many investments are led by technology, not market needs.
“We now have a window of opportunity to foster new business models and put in place the regulatory mechanisms that will give investors the confidence to stop chasing market distortions and focus on the long term.
“The formation of ESIP is indicative that no one organisation can solve this issue alone and a collaborative approach is essential to deliver the biggest benefit to society as a whole.”
Representing almost half of the UK’s electricity supply market and with initial support from the Scottish government and the Foreign and Commonwealth Office (FCO), the initiative will tackle regulatory barriers which many believe have held back the development of UK storage.
It will also seek greater transparency around the decision making made across the UK energy system concerning the services storage can provide. According to Lever, this includes the choices made across DNOs, Ofgem, National Grid and government which he said “needs to be joined up and transparent to ensure the right direction, rules and signals are given to the market”.
It is hoped this will help ESIP develop the long term business models necessary to encourage stronger investment and reach the potential of greater flexibility in the UK energy system.
Last year the Carbon Trust led a study which found that the UK could be saving up to £2.4 billion (US$3.05 billion) every year by 2030 if flexibility solutions such as energy storage were integrated into the UK electricity system.
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