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National Grid ESO blamed for underusing batteries

Battery storage firms say the UK energy system is failing to fully utilise cheaper battery options, leading to higher consumer bills

A coalition of UK battery storage developers has written to the government and the Electricity System Operator (ESO), raising concerns over the underuse of battery storage in the national energy system.

The group, which includes companies such as Zenobē, Eelpower, Harmony Energy and Field Energy, believes this issue is increasing costs for consumers and hindering the transition to renewable energy.

The developers argue that battery storage, which is often the cheapest option for managing excess energy, especially from wind power, is being skipped in favour of more expensive alternatives.

They claim that during grid constraint periods, batteries are being underused in over 90% of cases, leading to wasted renewable energy and higher costs.

In their letter, the companies said: “Our own data – verified by the ESO – shows that batteries are being skipped over 90% of the time during constraint periods for some sites.

“The consequences are clear. Consumers are paying more, clean renewable energy is being wasted and fossil fuel generation is being used instead.

“The cost of these constraints to consumers could exceed £2 billion a year by 2030. Meanwhile, investor confidence is dwindling.”

The group is calling for urgent action from the government and the ESO to address this issue, stating that better use of battery storage would reduce bills and boost investor confidence in the UK’s energy sector.

Craig Dyke, from National Grid ESO, responded to the concerns raised by the battery storage developers.

Speaking to the Financial Times, Mr Dyke pointed to technical factors such as outdated computer systems at the network operator and insufficient infrastructure, including a lack of cables to transport electricity efficiently, as reasons for the underuse of battery storage.

Last week, National Grid announced an agreement with the UK Government to sell its ESO for £630 million.

Energy Live News has contacted ESO for comment.

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