The UK has been positioned as the third most appealing market globally for investment in battery energy storage systems (BESS).
This recognition comes as part of EY’s Renewable Energy Country Attractiveness Index (RECAI 63), which underscores the UK’s energy market infrastructure and recent legislative advancements that classify BESS as a generation asset.
Despite a surge of $1.8 trillion (£1.4tn) in global clean energy investments last year, with $660 billion (£519bn) designated specifically for renewables, the report suggests that current investment levels may fall short of the COP28 target to triple global renewable capacity by 2030.
Challenges such as network gridlock and high capital costs could potentially impede progress at a critical juncture, according to the findings.
BESS, however, emerges as a pivotal solution to these challenges, capable of fortifying and stabilising network infrastructure while enabling greater integration of distributed energy resources into the grid.
The report’s new battery storage ranking identifies the US and China as the top two markets for BESS investment, citing robust policy support and ambitious cost reduction targets.
Global BESS deployment is projected to quadruple by 2030, reaching 572 GW/1,848 GWh.
Ben Warren, EY RECAI Chief Editor, said: “BESS investments are a long term commitment; they are also highly localised and carry more risk than some other clean energy investments.
“Success requires understanding the dynamic interaction of regional variations, electricity market design, technology and financing – as well as an acceptance of volatility.”
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