Cornwall Insight have released modelling data on Great Britain’s power market, showing that Government will need to spend £20bn on the battery storage sector to achieve its’ 2030 renewables targets.
Increased levels of battery storage are required to provide the flexibility needed in our modern energy system, driven by significant changes to the technological make-up of the system including an increase in energy sources such as solar and wind power. The data estimates that almost 10% of grid capacity will be provided by battery storage by 2030.
The use of battery storage continues to grow. According to a recent report from RenewableUK, the pipeline of projects has doubled in the last year from 16.1GW to 32.1GW. The data from Cornwall Insight however highlights a need for Government to spend nearly a fifth (18%) of its’ total energy technologies investment between 2025 and 2030 on battery storage if it wishes to achieve the 2030 targets and stabilise the market.
Tom Edwards, Senior Modeller at Cornwall Insight said:
“Up to 2030 and beyond, the GB energy market will face a significant transition towards a renewables led supply, as we aim to reach our ultimate goal of net zero by 2050. With all coal capacity due to close by April 2024 and nuclear and combined cycle gas turbine capacity ageing and approaching retirement, a significant investment will be needed to develop new technologies to compensate for these capacity losses while delivering on the governments offshore wind targets and net zero legislation.
“The shift in power markets will significantly alter the operation and development of the power generation mix, making prices more volatile and more exposed to weather and demand patterns. This will necessitate the development of back-up technologies to carry the system through when the wind does not blow, and the sun does not shine.
“While battery storage is growing at the moment, significant barriers including material costs and supply chain concerns may slow deployment.
“Batteries are by no means the end of the story and to meet energy market requirements and ensure a stable supply for consumers, other technologies including long-duration storage, hydrogen, nuclear, interconnection and CCUS will also need significant investment.”
Cornwall Insight provide information and guidance on the energy, utilities and environmental sectors and have been recognised by the Financial Times as one of the country’s leading management consultancies for the past three years in a row. For more information please visit the company’s website.