Vertically integrated energy company Scottish Power has submitted a proposal to extend recently introduced battery de-rating factors in Britain’s Capacity Market to storage included in demand side response bids in what has been described as a latest attack on the battery market.
The utility submitted the proposal on 13 March, which would create DSR technology classes with different minimum durations, and apply the extended performance testing to these newly created groups.
Among these would be a ‘Storage DSR’ class, which National Grid’s electricity market reform delivery body would be obligated to consult on applying the lower de-rating factors to.
Scottish Power argues that under current market rules if a DSR CMU (Capacity Market Unit – “a unit of electricity generation capacity or electricity demand reduction that can then be put forward in a future Capacity Market auction” according to the government definition), consisting of energy storage, is located behind the meter (BTM) it will not be subject to duration de-rating.
“This risks over-rewarding such storage and increasing costs to consumers. It is also contrary to the CM policy of technology neutrality and unfair to other market participants,” the company stated.
It adds that without such a change, storage developers are able to bypass the extended performance tests which are applied to capacity storage generating technology classes by going behind the meter.
The proposal suggests that each applicant for an unproven DSR CMU “must include details of any known intention to use a generating unit that is categorised as a DSR storage technology class”, a suggestion that has been refuted by those offering behind the meter battery services for DSR.
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