Big wins for Energy Storage in UK Capacity Market Auctions
Battery storage has won for the first time, agreements as part of the UK's latest Capacity Market auction, winning over 3.2 gigawatts (GW) of contracts according to provisional auction results.
The UK's Department for Business, Energy & Industrial Strategy has published provisional auction results for the T-4 Capacity Auction for delivery in 2020/21, which concluded on December 8.
Over 52 GW was awarded at a clearing price of Â£22.50 kW/year, including new gas generation.
However, the big news out of the provisional auction results was the awarding of over 3.2 GW of energy storage contracts, the first time energy storage has won agreements as part of the market wide auction. Specifically, four battery projects which had previously been successful under the National Grid's Enhanced Frequency Response (EFR) tender were provided with 15-year contracts as new build generators under the T-4 Capacity Auction. These four projects are the 10 MW Cleator and 40 MW Glassenbury projects being developed by Low Carbon, a 49 MW project being developed in West Burton by EDF Energy Renewables, and the 10 MW Blackburn Meadows project under construction in Sheffield by E.ON UK.