By Brian Kane, Chief Projects Officer at Powin. (Originally published on Current±)
At the end of October, the UK Government unveiled its “Strategic Plan for Long-Term Energy Infrastructure”, which aims to reshape the nation’s energy landscape through 2050. The plan seeks to attract investment, reduce grid connection delays, and fast-track the UK’s clean energy transition.
A key part of this is the National Energy System Operator’s (NESO) first-ever spatial energy plan, set to be published in 2026. However, concerns have already been raised about who will oversee the plan’s implementation and how energy supply crises will be handled. NESO, launched last month as a new publicly owned entity, aims to strategically guide and support the transition to clean power, focusing on cost reduction and maintaining energy security.
As the government and NESO develop a blueprint to futureproof the UK’s energy sector, industry leaders are seeking business insights on best practices to guide the country’s clean energy growth revolution. For businesses, this presents an opportunity to play a leading role in shaping the country’s green energy future.
By championing proven and commercially available solutions like battery energy storage systems (BESS), the private sector can help realise the ambitious goals of the government’s plan and lead the march towards a sustainable future.
The current landscape
With Labour pushing ahead with plans to decarbonise the electricity sector by 2030, increasing renewable energy use, reducing reliance on natural gas, enhancing infrastructure investment and collaborating with the private sector will be key.
One of the public’s main concerns about renewable energy, as it has been for years, is its perceived unreliability – particularly during periods of low generation.
Lithium-ion batteries, known for their high efficiency and long lifespan, are particularly well-suited for utility-scale applications, given they can efficiently store excess energy during periods of high renewable energy output and release it when energy demand peaks or renewable generation drops, ensuring a stable and continuous power supply on a large scale – supporting grid stability and enabling the integration of more renewable energy.
What innovation looks like
A recent report from NESO – The Clean Power 2030 (CP30) report, commissioned by the secretary of state for energy security and net zero, Ed Miliband – specifies that battery storage capacity should rise dramatically, from the current 5GW to between 23 and 27GW, with long-duration energy storage needing an increase from 3GW to between 5 and 8GW.
These comments from NESO reaffirm the position that BESS is at the heart of innovating change to drive forward sustainability goals for the energy sector – specifically when looking at the need to minimise energy waste and ensure a reliable supply of power.
Currently, much of the renewable energy generated during off-peak periods goes to waste due to a lack of adequate storage solutions. To quantify the problem, in 2022, over £215 million worth of wind energy was curtailed in the UK because the grid couldn’t handle the surplus. By capturing surplus energy from renewable sources like wind and solar, BESS allows energy to be stored and deployed when demand peaks, reducing reliance on fossil fuels and lowering energy costs for businesses and consumers.
Beyond reducing energy waste, what wider benefits are there for businesses investing in onsite energy storage? Cost, of course. According to National Grid, it’s estimated that technologies like battery storage systems – supporting the integration of more low-carbon power, heat, and transport technologies – could save the UK energy sector up to £40 billion by 2050.
Given these immediate and impactful benefits of BESS, the government announced plans to expedite interconnections between renewable energy projects and the grid to help expedite renewable deployments and meet global sustainability targets. The UK can significantly improve grid reliability and reduce power costs in the long run by reducing bottlenecks and prioritising essential transmission upgrades.
Why businesses need to lead innovative efforts
Businesses are uniquely positioned to take charge of the clean energy innovation. This leadership begins with embracing innovative yet proven technologies that demonstrate renewable energy’s reliability and efficiency to the broader public.
By commercialising BESS and standardising the technology so the industry can scale its operations and lower upfront costs, companies can showcase their effectiveness in a way that resonates with consumers and stakeholders. In addition to standardisation, critical focus must be placed on ensuring the safety and reliability of these systems, particularly as they operate in complex environments to balance grid supply and demand. Innovations such as fire-resistant designs, real-time monitoring systems, and robust testing protocols can enhance safety and build trust with consumers and stakeholders alike.
Beyond technology development, businesses of all sizes have a key role in accelerating BESS adoption. One impactful step is sourcing power from renewable energy through Corporate Power Purchase Agreements (CPPAs). By committing to long-term contracts with renewable energy producers, businesses create demand for new renewable projects while reducing their carbon footprint. This growing demand for renewable energy inherently drives the need for large-scale BESS. This will enable businesses to tap into growing consumer demand for sustainable practices – with a recent YouGov poll finding that 74% of the general public favour Britain sourcing more of its power from renewable sources.
Businesses can also advocate for regulatory changes to address critical barriers to deploying BESS and renewable projects such as long interconnection timelines. Supporting streamlined interconnection approvals and permitting processes as well as policies that incentivise BESS deployment can create a more favorable environment for clean energy innovation.
Through a combination of technological innovation, strategic energy sourcing, and policy advocacy, businesses and technology providers can take charge of scaling large-scale battery energy storage. These efforts will not only support the global transition to a low-carbon economy but also create economic opportunities by fostering a robust, sustainable energy market. The collaboration between industries, policymakers, and technology innovators is essential to build the new energy infrastructure required to power cities, communities, and homes with clean, emissions-free, and dependable technology – effectively driving forward change at a quicker pace
The path forward is through fostering collaboration
While the UK government’s plans lay the foundations for a cleaner energy future, achieving its goals will require collaboration across sectors and a blueprint led by the private sector.
Businesses, technology providers, and policymakers must work together to overcome barriers, such as grid integration challenges and financing gaps, to accelerate the deployment of large-scale renewable energy and battery storage solutions.
Technology providers can drive innovation by developing safer, more efficient, and cost-effective energy storage systems, while businesses can lead by example, committing to renewable energy through corporate PPAs and integrating storage into their energy strategies. Policymakers play a crucial role in creating a supportive regulatory framework, streamlining interconnection processes, and incentivising investment in clean energy projects.
This collaborative effort will not only ensure a more resilient and sustainable energy system but also position the UK as a global leader in the energy transition, driving economic growth while addressing the pressing challenges of climate change.
