We have considered a range of incentives dealing with the financial, regulatory and strategic aspects of storage project development, including their relevance to the power systems of Great Britain and Northern Ireland.  These have been discussed and assessed at recent meetings of Electricity Storage Network members.

Four proposals have been identified which are: system operation, contract terms for payment, subsidy for investment, and a proposal for a mandated requirement for storage.  As well as these incentives having merit in their own right, they also attempt to correct some of the imbalances caused in parts of the power system.  

It would be helpful to consult with the wider energy storage community and with others in the electricity industry!

It is the ESN's intention to identify which of the following four proposals should be further developed as a specific recommendation or recommendations to the Department of Energy and Climate Change and the Department of Enterprise Trade and Investment. We would like to open up discussions with the regulatory agencies OFGEM and the Utility Regulator.

1. Proposal: More volatile imbalance charges 

All electricity generators would be financially motivated to generate in accordance with scheduled dispatch and so be encouraged to seek innovative ways to balance their production schedule.  Electrical storage would be physical way to ensure balance.

2. Proposal: Improved contract terms for the ancillary service and energy markets

The TSOs purchase ancillary services from a number of suppliers, thereby offering an opportunity for storage developers to access an income stream.  However contract terms and conditions are complex and restrict the participation of storage technologies. These contract terms should be revised in light of new technologies.

3. Proposal: Ensure Feed-In Tariffs and Renewable Obligation Certificates can only be recieved if complementary electricity storage technology has also been built

Renewable generation is supported through mechanisms such as FIT and ROC.  These incentives encourage production of renewable generation, but also introduce increased requirements on flexibility from other resources. Electricity storage can provide this flexibility.

4. Proposal: Introduce a mandated requirement for network companies to install storage

Distribution companies can benefit from the introduction of storage, but the financial justification is complex. If storage is available to the distribution company, it would be able to use it to best advantage on the network

* 1. Name and Company, Organisation or Affiliation:

Your answers can be anonymous but we would prefer it if you could let us know your name and affiliation details

* 2. Which incentives do you think the UK Government should adopt?

* 3. If incentives are required, how should these be administered?

* 4. Do developers of electricity storage projects in the UK need support or incentives in order to develop commercialy viable projects?

* 5. Should incentives for storage be

* 6. Electricity storage projects could be develped by several different business sectors. Which of these sectors do you think should develop storage?

* 7. If financial incentives are to be used

* 8. What comments do you have on each of the proposed incentives?

* 9. Are there any other support mechanisms that should be used to encourage the development of storage? Please provide a description and examples of possible.

Thank you!

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