Joulen is calling on the Government to democratize our energy market, through optimization, incentives, and market reform, to bring down energy bills, stabilize the grid, and deliver a clean energy system.
50 GW of storage is needed in the UK by 2050, according to National Grid. This is needed to stabilize the grid, match electricity demand minute by minute and balance a clean reliable energy system.
The Joulen report has identified four steps that must be taken by the new UK Government in order to democratize the country's energy system, boost the income of small businesses and households and ensure a just and equitable transition.
These four steps are:
Bring batteries into the Government's existing plans, from its Rooftop Revolution to the Warm Homes Plan.
Enable easier access for all batteries – namely domestic and C&I (commercial and industrial) systems – to take part in all markets via Virtual Power Plant (VPP) technology.
Incentivize battery investment and broader market participation, via tax incentives and increased returns through better use of data.
Ensure optimization is at the heart of all implementation to ensure no unit of clean energy is wasted.
“Batteries are an essential technology in the decarbonisation of the grid” said Chris Doherty, Managing Director at Joulen. “By not allowing every battery to participate in the market and not directing existing renewable capacity in the most efficient way, clean energy and the investment behind it is being wasted. Our data shows that, with optimized small-scale battery and renewable systems on business premises and households in every corner of the UK, we can get closer, sooner, to a clean energy system. By maximizing the value of each one of these batteries through data, we can spread the benefits to small businesses and households, bringing down costs and optimizing our grid in the process. The Government must implement a Better Battery Strategy now, to democratize and secure our clean energy future.”
Small businesses and households across the UK are facing a cost-of-living crisis. The average household electricity bill has risen exponentially, with bills expected to rise by 9 percent to £1,714 a year for the typical household.
Joulen's modeling, which analyzed over 70 data sets and scenarios, revealed that businesses with onsite systems – from retailers to manufacturers - could be making savings of up to 60 percent each year on their energy bills with optimized Solar PV and battery storage, with additional earnings of £75,000 per battery every year through access to energy markets, maximizing earnings from their investment and assets.
It also showed that consumers with battery-fitted solar panels could be saving up to 65 percent on their bills, as well as making an additional income of £375 per year, on top of savings, through easier access to energy markets, per household, based on average household energy consumption.
As a market designed to get grid-scale projects online, the UK is currently limiting access to energy markets, restricting the paybacks to investors and developers. By utilizing Virtual Power Plant technology (VPP), which integrates multiple power sources to provide grid services, the UK can allow households and businesses to participate in our energy market, reducing bills, incentivizing further uptake, and ensuring everyone can benefit.
To achieve the UK's clean energy target by 2030, battery storage capacity will need to increase to around 50 GW by 2050. However, with grid-scale batteries getting connection dates well beyond 2030, these timeframes are misaligned. Smaller systems, which take just 12 months to build, are essential in achieving net zero goals.
Joulen's modeling shows that if just five per cent of the UK's 5.6 million private sector businesses installed and optimized renewable and storage systems, they could each save more than 207 Kg of carbon dioxide equivalent (CO2e) per day. This scales up to 21,000,000 tonnes a year – equivalent to more than a billion fully-grown trees, or taking 45,000 petrol or diesel cars off the road by 2030.
The analysis also shows that if every one of the Government's 1.5 million new homes had renewable and battery storage systems, we could save 1,320,000 tonnes of CO2 before 2030.
The analysis also shows that better utilizing smaller batteries could ease pressure on the grid, provide further storage capability locally, and help to avoid overbuilding and overspending on the energy transition. If 0.1 percent of UK businesses (6,900 businesses), invested in 1 MW batteries with local on-site renewable generation this could be the equivalent of more power than Hinkley Point C, as well as 130 standard grid-scale battery sites. Homes with renewable and storage systems could also reduce their reliance on the grid, easing network constraints and reducing our reliance on imported gas.
To successfully position the UK as a clean energy superpower, Joulen's report calls on the Government to follow its four clear steps: put batteries on the agenda; allow all batteries to take part in all markets; incentivize investment; and ensure optimization is at the heart of the energy transition.
Joulen's Better Battery Strategy was modeled on 70 proprietary data sets and scenarios, taking into account optimization opportunities, existing and possible market mechanisms, and public data sources.
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