Claire Perry's recent comment that the Capacity market is broken and needs a major overhaul is the right one. As a means to deliver additional generation or storage capacity, it has failed and needs to be rebuilt. The emergence, though, of aggregated DSR as a pure flexibility class is exciting, and points the way forward for taking a holistic approach to energy storage, IOT and demand side turn-up or down.
Whilst sighing (audibly), we read about another attack on battery technology within the CM from a vertically integrated utility with a fleet of large scale generation. Enernoc's comments resonate particularly, in pointing out that "BTM batteries are complementary, not standalone, to flexible demand". i.e an enabler for aggregated DSR response, which could be across a wide portfolio of small assets. The duration arguments which led to the harsh de-rating of grid-support batteries (perhaps too harsh, too soon and badly managed but not fundamentally illogical) don't hold water with BTM batteries as part of DSR.
The CM may have failed to deliver additional capacity, but it shouldn't be penalising the management of demand as well - that would be shooting itself in the remaining foot.
Ofgem is mulling a proposal by Scottish Power to further derate demand-side response (DSR) within the Capacity Market (CM) where it uses behind the meter storage – and possibly to derate DSR more broadly. Aggregators are not keen. The big six firm submitted the proposal last week, too late for the latest round of rule changes that Ofgem plans to take forward, published yesterday. However, the regulator said it would think about the suggestion with a view to indicating its decision in 2019.