Energy storage needs to be defined and have its own set of regulations to allow UK-based distribution network operators (DNO) to make the most of the technology.
That was feeling at Energy Storage Network’s annual symposium held in London, UK, last week, as the thorny issue of regulations and codes continues to hamper the industry.
Confusion rests on whether storage is defined as ‘generation’ or ‘distribution’, something that leads to ‘double charging’ on consumption taxes.
Patrick Clerens, chief executive at the European Association for the Storage of Energy (EASE), said the big question is what the UK industry was doing with network charges.
EASE wants energy storage to be defined as a separate asset— neither generation nor consumption— to enable operators to own a portfolio of energy storage systems.
Clarens said: “The charges must not discriminate against energy storage. We are not consumers; the energy is just being stored so why charge twice? And that’s something that is wrong.”
Antony Price, chairman of ESN, said: “It’s important we give the UK government and OFGEM clear signals because we have a chance to get this right, getting it wrong is something we would live to regret.”
He added that a lot of work was still needed to standards and codes to make things work, “such as double charging and network charges need to be sorted out”.
Adriana Laguna, low carbons technologies senior manager at UK Power Networks, said: “We need to promote clarity on the regulations of storage to allow ownership by DNOs. There should be opportunities for DNOs to own storage.”
The symposium was held on the same day the UK’s Minister of State for Climate Change and Industry Nick Hurd announced funding for a series of energy innovation projects.
The £28 million will be invested in smart systems, industrial energy reduction and offshore wind demonstrating our commitment to building a low carbon, low cost future.
This forms part of the government’s commitment to double support for energy innovation, up to £400 million per year in 2021.
Under the new investment, up to £9 million will be spent on a competition to reduce the cost of energy storage, including electricity, and up to £600,000 for feasibility studies for projects that can store energy on a large scale, for use when it’s needed.
Up to £7.6 million will be available for advancing energy demand side response technologies that can help private and public sector organisations reduce peak time energy use.
