Energy Storage in the Booming British Market

Authored by Jack Peck, Head of Sales, Wattstor

What steps can UK businesses take to fully unlock the value of their renewable energy investments? Let’s explore how energy storage is shaping opportunities in the UK market.

The UK has been at the forefront of the renewable energy transition, with significant investments in onshore and offshore wind, solar and other renewable sources. However, the growing share of renewables in the UK’s energy mix creates new challenges for grid operators. At the same time, it opens up opportunities for battery storage and flexibility solutions to play a bigger role.

In this guide to the booming energy storage market in Great Britain, I’ll be answering some of the pertinent questions that explain this in more detail.

What makes the UK an interesting country for renewable energy projects?

The UK offers a unique combination of volatile wholesale electricity prices, great natural resources for solar and wind generation, and innovative market access for customers with flexible assets. This gives businesses a unique opportunity to generate their own electricity on site. They can access cheaper grid power when renewable generation is high. They can also unlock extra value by trading their flexibility in the energy market.

What is driving the current demand in the UK? 

There are drivers both from the government in terms of their ambitious net zero targets and also the private sector with businesses looking for alternatives to expensive grid electricity. The government’s goal of achieving a fully decarbonised grid by 2035 has intensified the push to expand renewable energy deployment across the UK. At the same time, it is encouraging businesses to reduce their scope 1, 2, and 3 carbon emissions.

Additionally, the UK has some of the highest cost electricity in Europe and businesses are being forced to seek cheaper alternatives to traditional fossil fuels to remain competitive.

This is where renewables have taken the lead. The marginal cost of solar and wind power is now lower than that of fossil fuels. Renewable energy is no longer just better for the environment — it’s also the more cost-effective option.

What triggered the fast growth of renewables in the UK?

Several factors have contributed to the rapid expansion of renewable energy in the UK:

• Government policies and incentives
  The UK government’s implementation of the Contracts for Difference (CfD) scheme has been instrumental in providing financial stability for renewable energy projects. CfDs encourage investment in renewable energy by offering developers a fixed price for the electricity they generate. This protects them from volatile wholesale prices and provides confidence to invest in new projects.
• UK’s natural resources
  As an island nation with over 7,000 miles of coastline, the UK has some of the best natural wind resources in Europe. Making it an attractive market for asset owners and developers and increasing the amount of renewable generation in our energy mix.
• Advancements in technology and cost
  Significant improvements in renewable technologies, particularly in wind, solar and battery storage, have led to substantial cost reductions. For instance, the levelised cost of electricity for offshore wind has decreased markedly, making renewables cheaper than traditional energy sources.
• Environmental awareness
  Growing public concern about climate change has heightened demand for cleaner energy sources. This growing environmental awareness has prompted action from both the government and the private sector. Together, they are accelerating the adoption of renewable energy solutions across the UK.

What other economic factors are contributing to the growth of renewables in the UK?

The UK’s energy market has seen sharp volatility in wholesale electricity prices. This has been driven in part by fluctuations in fossil fuel markets and ongoing geopolitical tensions. This volatility has made renewable energy sources, which have lower marginal costs, more attractive. Additionally, the potential for energy independence and security has motivated investments in domestic renewable energy infrastructure.

How can UK organisations make the most of their renewable generation assets?

To fully capitalise on renewable energy investments, UK organisations should consider onsite generation in combination with Battery Energy Storage Systems (BESS). BESS enables the storage of excess energy produced during peak generation periods. This applies to energy from both onsite renewables and the grid. The stored energy can then be used during times of high demand or low generation.

This not only enhances energy self-sufficiency but also provides opportunities to participate in wholesale market trading to generate additional revenue.

What are the current challenges and opportunities in the UK energy storage market?

Challenges

• Regulatory uncertainty
  While there is strong public support for renewable energy, the regulatory framework around fire safety, planning and grid connections is still evolving – which can create uncertainties for investors and developers.
• Grid constraints
  The increasing penetration of renewables and an inefficient grid connection process has led to grid congestion across the country, posing challenges for the developers of renewable and storage projects.

Opportunities

• Government support
  On the back of the National Energy System Operator (NESO) Clean Power 2030 report, the UK government is exploring a number of reforms to the current grid connections process in an attempt to speed up connections and bring forward project development.
• Clean Power 2030 CP30 Action Plan
  The UK Government is considering renewables and battery storage alongside flexibility at the heart of their CP30 action plan.
• Market growth
  The UK energy storage systems market is expected to grow significantly, with projections indicating an increase from 10.74 megawatts in 2024 to 28.24 megawatts by 2029, driven by supportive government policies and the expanding renewable energy sector.

What role does Wattstor play in the UK’s energy storage landscape?

Wattstor plays a central role for UK businesses by enabling them to install onsite renewable energy systems at zero upfront cost. Through our innovative Price Protect tariff, Wattstor helps businesses achieve their Net Zero targets. At the same time, they pay less than the wholesale market rate for their electricity.

 Wattstor specialises in providing comprehensive energy management solutions that integrate renewable energy generation with advanced storage technologies. 

These systems are designed to optimise energy usage, reduce costs, and enhance sustainability for businesses across the UK. By leveraging our internal expertise, we help organisations navigate the complexities of the energy market. This enables them to maximise the benefits of their renewable energy investments.