Okay, admittedly, not a fully accurate title but it is a cryptic reference to a potential "battle" for storage providers in the form of the upcoming review of embedded benefits. The development in the article is great news showing how storage is at the forefront of assisting with National Grid and the issues it faces such as EFR. However, all of this could be stifled or at least curtailed by the impending review.
DECC has asked OFGEM to review current network charging rules. Changes to the status quo could have significant ramifications for distribution connected generators. These generators provide various benefits to the grid not least the reduction in the need for investment in the transmission network. Yet DECC are of the view that the embedded benefits provide a commercial advantage but I don't agree. Let's not forget that these benefits don't go directly to the generator - they receive them via their PPA which is a negotiated document.
What we are hearing in the industry is that much more work is needed to understand the benefits and how they are shared out and a wide ranging review is needed before changing the structure. To change without detailed analysis would most likely lead to serious deployment issues for storage projects just as the industry is starting to make great strides.
National Grid and RES are working on the first battery energy storage systems to provide a dynamic frequency response service in sub-second timescales in Great Britain.The parties have signed a four year contract that will see RES provide 20MW of frequency response from battery storage. This is a new service which will aid National Grid in performing its system balancing role, which increasingly requires innovation and the use of new technologies. The services delivered by RES’ battery storage systems will provide cost effective frequency response to the grid within one second of the detection of a frequency deviation.The battery storage systems will be fully operational within 18 months. RES and National Grid have been working together to design this innovative service since 2014; work which has been a forerunner to National Grid’s upcoming tender for 200MW of Enhanced Frequency Response.