The United Kingdom has been one of the pioneers in Europe in betting on large-scale energy storage, consolidating its position as a leader on the continent.

Chema Zabala Lopez, CEO of Alantra Energy Transition, tells Energía Estratégica España that this is because “in the UK, energy storage continues to be supported with a different approach, a more mature market, and a more consolidated business model.”

Among the measures adopted to promote battery connections, the Capacity Market stands out, which guarantees supply security and provides income to capacity providers, as well as the Contracts for Difference (CfD), which incentivize low-carbon generators.

For the expert, these specific schemes enable the launch of auctions and concrete capacity payment mechanisms that will allow the British Isles to reach their renewable power targets, complementing wind and solar energy sources with batteries, with the commitment to reduce greenhouse gas emissions by 80% by 2050.

For that period, the UK nations aim to significantly increase renewable energy and storage capacity. In solar energy, they seek to facilitate deployment through changes in planning regulations, offering accessible financing for domestic installations, and establishing stricter energy standards for new buildings. The ambition is to reach up to 70 GW of solar capacity by 2035.

Regarding wind energy, the plan is to reduce regulatory times for new projects, strengthen grid infrastructure, and improve community benefits. Lastly, for hydrogen, the goal is to reach up to 10 GW of production capacity, half of which will come from electrolytic projects, supported by a competitive business model by 2025.

These policies have allowed the UK to become a benchmark in integrating storage solutions, offering a flexible response to market volatility, especially in the intraday market. This has provided greater stability to investors and project developers, who find in the country a favorable regulatory environment for their initiatives.

At the same time, storage facility charges have been reviewed, eliminating the double charge, and the Electricity Act is planned to be amended to define energy storage as a generation asset, facilitating its integration with renewable energy.

As for the accumulated installed capacity of renewable energy, it reached 57.528 GW in the second quarter of 2024, with 16.943 GW from solar photovoltaic, 15.613 GW from wind energy, and 1.890 GW from hydropower.

Sector Challenges in the UK

However, there are also obstacles. José Manuel Menéndez, Vice President of Alantra Energy Transition, explains that one of the core limitations in the UK is related to grid connection. “The challenge often arises depending on the type of connection, whether to the transmission or distribution system, and even depending on the specific grid you are connecting to,” he details.

He continues: “Projects with simple interconnections, such as those directly connected to nearby substations, tend to obtain permits and contracts more quickly. However, in more complex schemes, timelines extend, and costs rise, making certain projects unfeasible.”

In fact, a recent study by Cornwall Insight revealed that two-thirds of renewable energy projects in Great Britain fail to pass the planning phase, significantly slowing down progress toward cleaner electricity generation. Between 2018 and 2023, 63% of proposed projects were abandoned, rejected, or withdrawn, posing serious barriers for developers.

Despite being an advanced market, it is also hindered by dependence on auctions, which can limit long-term growth if not properly adjusted to demand. Moreover, competition in this sector is increasing, which could pressure profit margins.

Towards 100 GW: Key Projects

It is also worth noting that, according to Rated Power, the UK is approaching an energy storage capacity of 100 GW. This is because an increasing number of large-scale projects are in development.

One of the most ambitious is the Sunnica energy storage system combined with batteries, which will reach a capacity of 500 MW. This project is being developed by PS Renewables and Tribus Clean Energy as a 50-50 joint venture. Located in Suffolk and Cambridgeshire in eastern England, it is expected to be operational by 2025.

Another significant development is the Hams Hall battery storage project, with a capacity of 400 MW, located in North Warwickshire, England. Its operation is scheduled to begin in 2026, and it is a collaboration between Penso Power, responsible for overseeing the project’s implementation and operation, Luminous Energy, and BW Group.

Similarly, in southeast England, the 320 MW project at DP World London Gateway is in full swing. This initiative, with an investment of £200 million from InterGen, will be developed at a new port and logistics center, with the potential to double its capacity after its commissioning in 2025.

On the other hand, South Wales is also seeing significant developments with the Uskmouth project, which has a capacity of 230 MW. Quinbrook Infrastructure Partners acquired it in 2022 and, after completing key milestones such as planning, grid connection agreements, and equipment procurement, began construction in November 2023.

It is expected to be operational by the first quarter of 2025, with E.ON acquiring 50% of its capacity, strengthening the significance of this investment for the region.

Moreover, there are plans for projects in the near future. Among the most promising is the 400 MW storage system at Blackdyke Farm, led by Innova in Cumberland, northern England.

This is the first of a series of projects from a 23 GW portfolio that has received planning authorization, marking an important milestone for the future of energy storage in the country.

Additionally, the Thorpe Marsh project, recently acquired by West Burton Energy, stands out for its 1.4 GW capacity to connect to the national grid and 50 MW for the distribution grid, positioning it as one of the largest energy storage projects in the world. It is currently in the process of obtaining permits and is expected to be a key piece of the UK’s energy infrastructure.

Finally, Carlton Power has been given the green light for the development of a 1 GW battery storage system in Trafford, Manchester. This project will be carried out in blocks of 250 MW and is subject to the final investment decision.