From the perspective of application distribution, under the guidance of policy incentives, market rules and flexible price mechanism, the main application scenarios of wall mounted battery storage are distributed in the power generation side, the grid side and the user side. Among them, the auxiliary service field represented by frequency modulation has become an important application form. It is more and more common to realize energy time shift by configuring energy storage systems in renewable energy stations. At the same time, the application of energy storage in the field of power transmission and distribution mainly includes reactive power support, easing transmission congestion, delaying the expansion and upgrading of power transmission and distribution equipment, substation DC power supply, etc. In different scenarios, the value of powerwall solar storage battery in the market is different.
Therefore, the powerwall availability uk is very strong. Why? The development of energy storage in Britain is inseparable from policy incentives and mechanism support. The British government has approved the deployment of more home battery energy storage projects to balance the development of the grid and build a relatively intelligent and flexible power system; Support energy storage technology innovation, reduce costs and promote technology commercialization by investing public funds; Greatly promote the revision of energy storage related policies and electricity market rules. Energy storage projects in the United Kingdom mainly gain income through capacity market mechanism and ancillary service market mechanism, and also gain income by providing up and down regulated electricity in the balanced market and generating electricity during peak price periods.
（1） Market size
According to the data officially released by the UK, there are about 4 gigawatts of energy storage power stations in the UK, including 3 gigawatts of pumped storage and 1 gigawatts of 20kwh power wall battery storage. The energy storage scale under construction and planning will reach 10 GW, including 8 GW for battery storage and 2 GW for pumped storage. In 2021, UK public utility scale energy storage projects will grow strongly, with the annual deployment increasing by 70% year on year.
From the scale of individual projects and the technical route, early power generation projects above 50 megawatts in the UK need to apply for licenses, which makes most home battery storage projects set at 49 megawatts, limiting the willingness to invest in energy storage. In July 2020, the UK lifted the capacity limit on battery energy storage projects and allowed the deployment of energy storage projects with a scale of more than 50 MW and 350 MW in England and Wales, which led to a rapid increase in the number of battery energy storage projects in the UK power grid. In recent years, the British Department of Commerce, Energy and Industrial Strategy (BEIS) has approved several large-scale energy storage project plans, such as the 320 MW/640 MWh battery energy storage project of InterGen, a British energy company, at the Thames estuary, and the battery energy storage system with a total installed capacity of 100 MW deployed by Wartsila Group and Pivot Power, a British energy developer. In addition, Shell announced in August 2021 that the 100 MW energy storage power station will be fully put into operation. It is the largest energy storage power station in Europe at present, located near Wiltshire in the southwest of England. It is composed of two battery energy storage facilities with an installed capacity of 50 MW/50 MWh, and uses lithium iron phosphate/lithium ternary battery technology. Pivot Power, a subsidiary of EDF, a French renewable energy developer, said recently that it had obtained the planning license for two lithium-ion battery energy storage systems with an installed capacity of 50 MW/100 MWh, which will be deployed in Sundon, Bedfordshire and Indian Queens, Cornwall.
（2） Supportive policies
In terms of policy support, the UK mainly invests public funds to support energy storage technology innovation, reduce costs and promote technology commercialization. The government's Office of Natural Gas and Power Market (OFGEM) was the first to provide financial support for grid innovation technologies and programs, including energy storage. On this basis, the UK set up the "Industrial Strategic Challenge Fund" in 2017 and allocated 246 million pounds to carry out the Faraday Challenge, aiming to comprehensively promote battery technology from research and development to the market.
In addition to the Faraday Challenge Plan, in order to achieve the transformation of the net zero system, the British government released the "Ten Key Plans" in November 2020, and launched the "Net Zero Innovation Portfolio" project of 1 billion pounds in this plan to accelerate low-carbon technological innovation and reduce the cost of the UK's low-carbon transformation. The "Net Zero Innovation Portfolio" project focuses on ten key areas, including "energy storage and power flexibility".
In the past year, the British government allocated £ 92 million to support the next generation of green technologies including energy storage, of which £ 68 million was used to further develop energy storage technologies to support the future renewable energy system. Long term energy storage is expected to become a key component of Britain's more intelligent and flexible low-carbon energy system. This energy storage technology can store wind power, solar power generation and heat energy for a long time (including months or years). The British government has launched at least 100 million pounds of innovation funds to support energy storage and flexibility innovation projects, including support for energy storage technologies with different time dimensions such as hours, days and months. With the increasingly saturated FM response market in the UK, the energy storage system with a continuous discharge time of 2 hours will be more attractive.
（3） Market environment
The UK has greatly promoted the revision of electricity market rules related to energy storage. Since 2016, the British government has allowed emerging resources, including electrochemical energy storage, to participate in the capacity market. The capacity market allows resources participating in capacity bidding to participate in the wholesale electricity market at the same time, which has promoted the rapid increase of installed capacity of energy storage in the UK. In 2017, the UK amended the Electricity Law to clarify the license and planning system for energy storage, and enriched the definition of energy storage from a simple power generation asset to a component of the power system. OFGEM revised the definition of energy storage in June 2019 and classified the energy storage system as a power generation facility. This measure negates the original controversial dual charging policy of energy storage system, that is, the energy storage system is charged as both an electric facility and a power generation facility. In fact, this double charging policy is widely adopted in European countries. In 2020, this double charging system in the UK will be modified, and the energy storage facilities will only pay for the power generation end. The advantage of the energy storage system as a power generation facility is that it can operate in the rules already familiar to the industry, and the industry manufacturers understand how the energy storage system adapts to these rules.
（4） Source of income and business model
The new energy storage in the UK electricity market mainly benefits from the capacity market mechanism and the ancillary service market mechanism, such as enhanced fast frequency regulation, and also benefits from providing up and down regulated electricity in the balanced market and generating electricity during peak price periods.