New report finds household bills could be cut by £50 a year through energy storage

A new report published today, and supported by SSE, outlines significant cost savings for the UK electricity system, should the potential for energy storage be realised. The impact of which could deliver savings of up to £50 a year on an average consumer energy bill through a system wide saving of up to £2.4bn a year by 2030.

The report, launched at the Scottish Renewables Annual Conference, was collaboratively funded  by three major utilities, SSE, E.ON, and Scottish Power, as well as the Department of Energy and Climate Change (DECC) and the Scottish Government.

The analysis, carried out over a year by the Carbon Trust and Imperial College London, is the most comprehensive review to date of the benefits of storage at a UK-system level.

By reviewing the societal case for storage at a system wide level the report highlights the significant savings that could be made for consumers by deploying storage.

It then explores two specific example applications of distributed storage to highlight a series of core barriers to deployment that have created a market failure, and makes recommendations on how to overcome these barriers to create a level playing field for storage.

Paul Cooley, SSE Director of Renewables Development, said: “SSE supports the findings of the Carbon Trust’s report which spells out how energy storage can significantly reduce bills for consumers whilst decarbonising our energy system and retaining security of supply.

“It also shows that with the correct market structures, price signals and policy certainty, projects such as SSE’s proposed pumped storage scheme at Coire Glas could make a valuable contribution to society.”

Andrew Lever, Director of Innovation at the Carbon Trust, added: “Energy storage has long been seen as a panacea for a low carbon energy sector in the UK, offering a suite of services to balance the system, make electricity networks more efficient and help the UK to meet its carbon targets at the lowest cost.

“But storage turns conventional knowledge on its head as it doesn’t fit neatly into existing regulatory frameworks, which have been designed around an energy system where power is supplied to consumers from large centralised power stations. We have now reached a stage where the technologies are looking promising, but will face challenges in deployment due to an outdated market framework.

“An urgent rethink is needed so we can address and overcome the broken value chain of energy storage, which is essential if Britain is to provide low carbon energy at the lowest cost to the consumer.”

To read the full report please visit: www.carbontrust.com/energystorage

pictured: Coire Glas artist impression