Published in late 2024, the UK Government’s Clean Power Action Plan outlined the need for an additional 19-23GW of battery energy storage to be operational by 2030 to aid the energy transition.

Battery energy storage will play a crucial role in achieving the UK’s 2030 clean power targets and, eventually, the UN’s 2050 Net Zero goal. Therefore, battery energy storage is a key part of the UK’s clean power future.

What is battery energy storage?

Battery energy storage is a method of storing electricity generated by both fossil fuel power plants and renewable energy sources.

Battery energy storage systems (BESS) are battery devices that store excess energy and discharge it back to the National Grid. The grid will then distribute the stored electricity to homes and businesses when demand increases or generation drops. These systems are commonly installed near renewable energy sites, such as solar or wind farms, to help balance energy supply and ensure a stable and reliable flow of electricity to the grid.

Why is battery energy storage important to clean power?

Relying on energy from renewable sources can be tricky for the National Grid, as each source will provide varying levels of energy depending on weather conditions or time of day. Every day, the National Grid has to match supply with demand, which would be challenging if the grid were relying on renewable energy alone.

Solar farms, for example, generate high levels of electricity during daylight hours and in sunny conditions. However, peak demand for electricity from the grid often occurs during the winter months and in the evenings, when energy generated from solar power is generally lower. This mismatch in supply and demand can mean that excess energy is wasted without proper energy storage, and alternatives are needed during reduced generation.

Traditionally, the UK has relied on fossil fuels to meet demand when needed, as power plants generate consistent levels of power in all conditions. However, this reliance will need to be reduced to meet the UK’s 2030 clean power targets. This is where the importance of battery energy storage devices comes in, as excess electricity can be stored in battery energy storage systems at energy sites and released into the grid when needed.

Types of battery energy storage systems

Lithium-ion batteries

Lithium-ion batteries are the most common battery energy storage system installed in the UK. They accounted for 90% of grid-scale installations between 2022 and 2024. They are a popular form of battery energy storage system due to their high energy density, efficiency, and low maintenance requirements.

Lead-acid batteries

Lead-acid batteries are an older type of battery that is still used in off-grid power systems and backup power systems. They are cheaper than lithium-ion batteries but have a shorter lifespan of 5-10 years and lower energy density.

Flow batteries

Flow batteries are considered as an emerging technology in the sector. They store energy in large tanks of liquid electrolytes, which are pumped through a battery cell and can be released when required. They last longer and discharge energy for longer durations than lithium-ion batteries, but are limited to grid-scale sites due to their size.

Sodium-ion batteries

Sodium-ion batteries are a similar alternative to lithium-ion batteries. The sodium within the batteries sourced most commonly from seawater, which is a cheaper source. However, the batteries are heavier than lithium-ion, making them often only suitable for large grid-scale battery energy storage sites.

Advantages and disadvantages of battery energy storage systems

It is clear that battery energy storage systems are an essential part of the energy sector and crucial to the growth and expansion of renewable energy in the UK. However, there are a number of advantages and disadvantages that people should be aware of when discussing the expansion of battery energy storage systems.

Advantages

Reduces reliance on fossil fuels

Battery energy storage systems placed near renewable energy sites are an important part of reducing the UK’s reliance on fossil fuels. Battery energy storage systems are able to store excess energy to release into the grid when required, allowing the grid to meet demand via renewable energy sources without turning to fossil fuels. This, in turn, will help the UK reach its 2030 clean power goals.

Ensures supply is consistent and reliable

Battery energy storage systems can steady the flow of energy to the grid in a managed and reliable way. This can help the grid manage, predict, and plan for energy fluctuations purely using renewable energy sources.

Enhances resilience in the grid

Battery energy storage systems can help to support the grid by providing backup power in the event of an outage. This is crucial to managing grid stability during peak times or when there are problems in the network.

Disadvantages

High initial costs

From the sourcing of materials to constructing the sites and ensuring safety standards are in place, battery energy storage systems are expensive to build.

Concerns over safety

Safety concerns regarding battery energy storage systems exist because batteries can become flammable when overheated, and there have been incidents of batteries exploding. However, these occasions are rare, and safety systems and procedures are put in place to manage these risks.

Barriers to battery energy storage expansion

The battery energy storage industry will need to expand rapidly over the next few years in order to meet future demand. The current capacity of battery energy storage is 4.5GW, and according to the 2030 Clean Power targets, this will need to increase to between 23GW to 27GW.

However, planning permissions and development challenges are often barriers to the industry’s expansion. While construction time only takes 6-12 months on average, the planning and development phase can extend beyond 1 year. Sites are also required to secure a generating licence issued by Ofgem and the Utility Regulator (if based in Northern Ireland). Additionally, battery energy storage sites are experiencing delays in being connected to the grid. Until that happens, they cannot be operational or contribute to the UK’s clean power future.

Furthermore, the industry is also facing large skills gaps that threaten further delays to projects. Across the energy sector, many companies are struggling to fill specialist roles. Delays in securing the right talent with specialist skills and having to rely on either not having the skills they need or upskilling junior employees for these roles ultimately cost businesses time and money. For companies struggling to secure and retain battery energy storage staff, a specialist recruitment agency can provide access to and connections with top industry talent, ensuring that roles are filled at pace.

The future of battery energy storage

Despite the challenges the industry faces, many new battery energy storage projects are under development. In fact, over 1,600 battery energy storage projects are planned, with 8% of those sites operational. This means that the UK has the potential within its pipeline to increase storage capacity to meet 2030 targets and support the renewable energy sector as it experiences a similar level of growth.

The battery energy storage systems industry is also due to benefit from the Government’s new “cap and floor” revenue support scheme. This will provide a guaranteed minimum revenue stream for developers and ensure the industry remains attractive to investors. This will help businesses plan for more projects, secure talent, and scale business operations with ease.

Overall, the future for the battery energy storage sector is bright and will significantly contribute to the UK’s clean power goals. There may be some challenges in scaling the industry to meet the UK’s 2030 targets, however, there is a fantastic optimism regarding how much can be achieved over the next 5 years.

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