Capacity Market New Technologies

28 Mar 2025 | Committee report linked

The Department described energy security and the security of supply as its highest priority. We asked the Department what it thought about concerns, set out in a document published by Net Zero Watch called “Blackout Risk in the GB Grid”, that events such as certain weather conditions, or interruption to a few power stations, led to a situation in early January where the level of supply in the grid to meet energy demand fell to what it described as “worryingly low levels”; with a risk of “cutt...

The Department described energy security and the security of supply as its highest priority. We asked the Department what it thought about concerns, set out in a document published by Net Zero Watch called “Blackout Risk in the GB Grid”, …

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26 May 2024 | Committee report linked

We noted that renewable energy sources such as solar and wind are determined by the weather, making them intermittent; a view supported by Hydrogen UK. DESNZ recognised that electricity-based heating may change existing patterns in demand for electricity. It said that it therefore needed to make sure the power system can reliably manage peaks and troughs in both supply and demand for electricity throughout the day. DESNZ explained that this was likely to require new low-carbon technologies th...

We noted that renewable energy sources such as solar and wind are determined by the weather, making them intermittent; a view supported by Hydrogen UK. DESNZ recognised that electricity-based heating may change existing patterns in demand for electricity. It said …

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24 May 2024 | Committee report linked

Currently the UK relies on mostly imported gas for electricity system balancing needs. Low carbon long-term energy storage has the potential to reduce the UK’s carbon impact whilst maintaining or improving its levels of energy security.

Currently the UK relies on mostly imported gas for electricity system balancing needs. Low carbon long-term energy storage has the potential to reduce the UK’s carbon impact whilst maintaining or improving its levels of energy security. Type: conclusion | Number: …

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24 May 2024 | Committee report linked

While short-term energy storage has some market drivers, the development of long-term, inter-seasonal storage at the scale expected to be required faces market, policy and regulatory barriers. The UK economy will require a significant level of low carbon energy storage of this type in order to achieve the Government’s net zero energy goals while maintaining energy security and avoiding energy shortfalls.

While short-term energy storage has some market drivers, the development of long-term, inter-seasonal storage at the scale expected to be required faces market, policy and regulatory barriers. The UK economy will require a significant level of low carbon energy storage …

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24 May 2024 | Committee report linked

The Government must address as a matter of urgency the barriers to long term energy storage for the UK to ensure it can provide its citizens with clean and reliable energy during periods of limited renewable generation. This can be delivered through direct Government intervention and investment in infrastructure, as well as through regulatory and policy reforms, such as cap and floor mechanisms or a reformed capacity mechanism, that signal to the market the value of long-term energy storage.

The Government must address as a matter of urgency the barriers to long term energy storage for the UK to ensure it can provide its citizens with clean and reliable energy during periods of limited renewable generation. This can be …

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24 May 2024 | Committee report linked

By the end of 2025 at the latest, the Government must publish an energy storage strategy, underpinned by robust analysis, that indicates to the market the capacity and type of both short-term and long-term energy storage which will be required in a net zero energy system, and the measures that Ministers plan to take to ensure that sufficient capacity is in place to meet the system’s needs in 2035 and in 2050.

By the end of 2025 at the latest, the Government must publish an energy storage strategy, underpinned by robust analysis, that indicates to the market the capacity and type of both short-term and long-term energy storage which will be required …

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24 May 2024 | Committee report linked

The benefits to the energy sector of developing grid flexibility are substantial. These benefits are underpinned and sustained by increased usage of decarbonised consumer technologies such as smart meters, heat pumps and electric vehicles in ways which make best use of the energy supply.

The benefits to the energy sector of developing grid flexibility are substantial. These benefits are underpinned and sustained by increased usage of decarbonised consumer technologies such as smart meters, heat pumps and electric vehicles in ways which make best use …

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24 May 2024 | Committee report linked

The flexibility in the GB energy system provided by the development of demand- side response and energy storage capacity can provide significant cost savings to consumers. But the current slow rate of rollout and take-up of flexible technologies which can benefit from demand-side response is delaying the realisation of these benefits. The Government’s 2035 targets of 600,000 heat pump installations a year and 100% of new cars being zero emission both face real challenges.

The flexibility in the GB energy system provided by the development of demand- side response and energy storage capacity can provide significant cost savings to consumers. But the current slow rate of rollout and take-up of flexible technologies which can …

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24 May 2024 | Committee report linked

Renewable energy generation paired with sufficient energy storage will allow the UK to become more self-reliant, secure national energy supplies and provide a buffer against energy price hikes. This is a future that the UK should embrace, and that the Government must support actively.

Renewable energy generation paired with sufficient energy storage will allow the UK to become more self-reliant, secure national energy supplies and provide a buffer against energy price hikes. This is a future that the UK should embrace, and that the …

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21 Nov 2023 | Committee report linked

Having secure orders from an anchor customer is critical if battery manufacturers are going to raise sufficient funds to build a gigafactory. Offtake agreements between OEMs and battery manufacturers help signal to investors that there is demand for their product. The Advanced Manufacturing Plan and UK Battery Strategy should set out ways in which the Government could help to facilitate offtake agreements between OEMs and battery manufacturers.

Having secure orders from an anchor customer is critical if battery manufacturers are going to raise sufficient funds to build a gigafactory. Offtake agreements between OEMs and battery manufacturers help signal to investors that there is demand for their product. …

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21 Nov 2023 | Committee report linked

The UK has potential competitive advantages in new battery technologies. However, despite excelling in innovation, it struggles to ensure that new technologies developed in the UK are commercialised domestically. The UK Battery Strategy must set out how the Government plans to ensure that new battery technologies, where the UK has a competitive advantage, are commercialised in the UK.

The UK has potential competitive advantages in new battery technologies. However, despite excelling in innovation, it struggles to ensure that new technologies developed in the UK are commercialised domestically. The UK Battery Strategy must set out how the Government plans …

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21 Jun 2023 | Committee report linked

Government’s Net Zero Strategy expects a 40% to 60% increase in electricity demand by 2035 as more modes of transport and heating switch to electricity from fossil fuels.61 The Department told us it is expecting a corresponding increase in electricity generation from roughly 300TWh (a terawatt-hour is a unit of power) today to between 450TWh and 485TWh by 2035.62 Reducing peak electricity demand by encouraging households and businesses to be more efficient and flexible in how and when they us...

Government’s Net Zero Strategy expects a 40% to 60% increase in electricity demand by 2035 as more modes of transport and heating switch to electricity from fossil fuels.61 The Department told us it is expecting a corresponding increase in electricity …

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28 Apr 2023 | Committee report linked

The deployment of long-duration energy storage is essential to ensuring that a zero- carbon power system can operate 24/7, 365 days a year. These projects are capital intensive and face barriers to deployment due to a lack of long-term market signals. The Government’s 2024 ambition to develop appropriate policy to enable investment in these technologies is welcome, but we are concerned that this has not been made enough of a policy priority.

The deployment of long-duration energy storage is essential to ensuring that a zero- carbon power system can operate 24/7, 365 days a year. These projects are capital intensive and face barriers to deployment due to a lack of long-term market …

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28 Apr 2023 | Committee report linked

National Grid ESO’s markets for balancing the system and addressing constraints continue to be dominated by fast-acting gas plants. More flexible and responsive low-carbon assets, such as batteries, could lead to greater competition in National Grid ESO’s markets and offer more cost-effective services. We recommend that National Grid ESO opens up its markets to more participants and that it is transparent about the choices it makes when selecting which technologies will be used to balance the...

National Grid ESO’s markets for balancing the system and addressing constraints continue to be dominated by fast-acting gas plants. More flexible and responsive low-carbon assets, such as batteries, could lead to greater competition in National Grid ESO’s markets and offer …

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28 Apr 2023 | Committee report linked

To build on the success of the Demand Flexibility Service and ensure that demand- side response can become mainstream, the industry needs the opportunity to do more learning by doing. While necessary system reforms take place to create a more enabling environment for demand-side response, we recommend that National Grid ESO and Ofgem work with industry on developing a transitional demand-side response service that can support existing day-to-day balancing services.

To build on the success of the Demand Flexibility Service and ensure that demand- side response can become mainstream, the industry needs the opportunity to do more learning by doing. While necessary system reforms take place to create a more …

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28 Apr 2023 | Committee report linked

To unlock the potential role that flexibility can play in better synchronising supply and demand, National Grid ESO will need to improve its digital capabilities. We recommend that National Grid ESO speeds up progress on making sure its IT upgrades mean that it can handle flexibility from assets smaller than 1MW and reports to Parliament on its progress in hitting this target.

To unlock the potential role that flexibility can play in better synchronising supply and demand, National Grid ESO will need to improve its digital capabilities. We recommend that National Grid ESO speeds up progress on making sure its IT upgrades …

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