Home Global £20bn needed for battery storage to meet renewable goals warns Cornwall Insight

£20bn needed for battery storage to meet renewable goals warns Cornwall Insight

£20bn needed for battery storage to meet renewable goals warns Cornwall Insight

The government will have to commit PS20bn on battery storage to meet its end-of-decade renewables targets, argued energy specialists Cornwall Insight.

Its modelling on Great Britain’s power market has revealed that between 2025 and 2030, the government must spend nearly nearly a fifth (18 per cent) of its total energy technologies investments to ensure a stable energy markets.

The group’s latest estimates almost 10 per cent of grid capacity will have to be provided by battery storage by 2030, to address stability and flexibility requirements in the energy market.

This is due to significant technological changes, including an increase in intermittent energy sources like solar and wind power.

While the price of batteries will fall as more products are made and entered the market, there could still be significant market headwinds that can stifle renewable ramp-up efforts.

Materials costs and supply chain problems in the major batteries production centers are expected to hinder a large rollout of new battery projects.

Last Month, Downing Street revealed the UK’s Energy Security Strategy. It focuses on increasing domestic renewable energy, and maintaining the country’s energy independence.

This was in response to Russia’s invasion and the West wanted to get away from Kremlin-backed hydrocarbons.

Plans including boosting onshore wind from 11 GW to 50 GW by the end of the decade and solar power from 14 GW to 70 GW.

Tom Edwards, senior modeller at Cornwall Insight explained: “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 government’s offshore wind targets and net zero legislation.”

He predicted that the power market would become harder to forecast, which will make battery storage even more important.

The modeller stated that the shift in power markets would significantly affect the operation and development the power generation mix. This will make prices volatile, more susceptible to weather patterns and increase demand. To keep the system running when there is no wind or sun , it will be necessary to develop back-up technology.

City A.M has reached out to the Department for Business, Energy and Industrial Strategy for comment.


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