Future of storage in light of the new National Grid balancing services

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In June 2017 National Grid launched a consultation on System Needs and Product Strategy (SNAPS). National Grid outlined the services it will need to procure in the future in order to balance the grid and maintain secure and affordable electricity supplies. The consultation provided an opportunity for businesses, like Origami Energy, to contribute to the evolution of the balancing services markets.

More asset diversity in the system

We believe that an efficient and low-carbon energy system relies upon a more supple, transparent and nearer real-time market for energy flexibility.

The prerequisite is a model that allows a diverse range of assets to participate in flexibility provision. This diversity facilitates better market innovation and optimisation. Greater participation by flexibility provider is ultimately beneficial to the system as it will reduce costs, therefore make electricity supply more affordable to consumers.

Balancing with storage

The increased emphases on the flexibility providers’ role to respond to system needs, provides an opportunity for battery storage asset operators. The technology has multiple benefits. It can replace more carbon intensive solutions, can provide fast response, and has the inherent ability to deliver a variety of services,

Currently storage is still costly and in most cases it is lacking long term revenue certainty. Origami provided response to National Grid highlighting the significant role storage can play in grid balancing. To support the necessary investment, long term revenue certainty and the ability to stack services are necessary. With these enablers in place, in the future storage should have a key role in maintaining a secure and balanced grid.

Consultation responses are published on the Ofgem website.

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