The past, present and future of BESS in the UK

Battery Energy Storage Systems (BESS) are revolutionising the UK’s energy landscape by offering a solution to the complexities of integrating renewable energy sources and ensuring grid stability.

This blog offers a comprehensive overview of BESS in the UK, encompassing their history, current standing, future outlooks, and their influence on the UK’s energy goals.

History of BESS in the UK

The concept of energy storage in the UK isn’t new, with pumped hydro storage being utilised for many years.

This method involves pumping water uphill to a reservoir during periods of low electricity demand and releasing it to generate electricity during peak demand.

However, the emergence of modern BESS, primarily employing lithium-ion batteries, gained momentum in the 2010s.

This surge was fueled by declining battery costs and the growing necessity for grid flexibility to accommodate the increasing integration of renewable energy sources.

Current standing of BESS in the UK

The UK holds a prominent position in BESS deployment globally, boasting a total capacity of 4.4GW, second only to the US.

This capacity is distributed across 161 operational BESS sites of varying scales, with a combined electricity storage capacity of 2.6GWh.

Notable operational BESS sites in the UK include the National Grid Electricity Substation in Chester, with an impressive 100MW capacity, and Dollymans Storage in Wickford, possessing a capacity of 99.98 MW.

Types of BESS in the UK

Lithium-ion batteries dominate the BESS landscape in the UK, constituting approximately 90% of grid-scale installations.

Within this category, lithium iron phosphate (LFP) batteries are the most prevalent, commanding around 60% of the BESS market.

The majority of new BESS projects utilise either LFP or lithium nickel manganese cobalt (NMC) batteries.

While lithium-ion technology currently reigns supreme, other battery technologies, such as flow batteries and sodium-ion batteries, are steadily emerging and are anticipated to capture a larger market share in the future.

A deeper look BESS technology

A closer examination of battery technologies reveals the diverse options being explored and implemented in BESS projects:

• Lead-Acid: This mature technology offers cost-effectiveness and reliability, making it suitable for certain applications.
• Lithium-Ion: As the dominant technology, lithium-ion batteries offer high energy density, long cycle life, and declining costs, driving their widespread adoption.
• Vanadium Redox Flow: This technology is well-suited for large-scale energy storage due to its long lifespan and scalability.
• Sodium Nickel Chloride: This technology offers high energy density and safety advantages, making it a promising option for future BESS deployments.

BESS projects in the UK can be categorised into two primary types:

• Front-of-meter (FOM): Also referred to as grid-scale or utility-scale, FOM BESS represent the largest segment of the market. They supply power to the grid or off-site locations, primarily serving utility companies, grid operators, and renewable energy developers.
• Behind-the-meter (BTM): These systems provide power to on-site locations, such as residential homes or businesses. BTM BESS are employed for various purposes, including EV charging infrastructure, telecommunications, data centres, and residential energy storage.

Future outlooks for BESS in the UK

The future of BESS in the UK appears promising, with substantial growth anticipated in the coming years.

The total capacity of BESS projects in the pipeline has surged to an impressive 95.6GW, a significant leap from 50.3GW just a year ago. This remarkable growth is propelled by several key factors:

• Declining battery costs: The cost of grid-scale BESS has experienced a rapid decline and is projected to continue this downward trend.
• Supportive government policies: The UK government has implemented policies aimed at streamlining planning permissions for energy storage projects, thereby enhancing the attractiveness of investments in the sector. Moreover, the government actively provides funding for innovation and research in energy storage technologies, fostering the development of advanced BESS solutions.
• Growing renewable energy deployment: The UK’s ambitious targets for renewable energy generation necessitate energy storage solutions to effectively manage the intermittent nature of these sources and maintain grid stability.

Projected growth and new technologies

By 2040, BESS capacity in the UK is projected to reach a substantial 50 GW, with some forecasts suggesting an average duration of up to five hours.

The scale of individual BESS projects is also on the rise, with 1GW assets anticipated to be deployed as early as 2027.

While lithium-ion batteries currently hold a dominant position in the market, novel technologies such as iron-air and sodium-ion batteries are emerging as potential contenders, potentially challenging lithium-ion’s dominance in the future.

UK’s energy goals

The UK has established ambitious energy goals, including a legally binding commitment to achieve net-zero greenhouse gas emissions by 2050.

To realise this objective, the government aims to fully decarbonise the power sector by 2035, subject to security of supply.

This transition involves a substantial increase in renewable energy generation, with targets set for up to 50GW of offshore wind by 2030 and an expansion of solar capacity to 70GW by 2035.

Furthermore, the UK government is committed to doubling Britain’s electricity generation capacity by the late 2030s, with the ultimate aim of transforming the UK into a net-zero economy by 2050.

In addition to the UK-wide target, Scotland has set its own ambitious goal of becoming a net-zero economy by 2045. The UK has also pledged a 68% reduction in emissions by 2030 as part of its Nationally Determined Contribution towards the Paris Agreement.

Impact of BESS on UK’s energy goals

BESS plays a pivotal role in assisting the UK in achieving its ambitious energy goals.

By providing essential grid balancing services, supporting the integration of renewable energy sources, and reducing reliance on fossil fuels, BESS contributes significantly to a more sustainable, secure, and resilient energy system.

Grid balancing services

BESS possesses the capability to swiftly respond to fluctuations in electricity supply and demand, effectively maintaining grid stability.

This rapid response capability is of paramount importance as the UK increases its dependence on intermittent renewable energy sources such as wind and solar power. BESS can store surplus energy generated during periods of high renewable production and discharge it when demand surges or renewable generation dips, ensuring a consistent and dependable electricity supply.

Furthermore, BESS can serve as a reliable backup power source during outages, enhancing energy security and resilience.

This is particularly crucial for critical infrastructure, such as hospitals and data centers, where uninterrupted power supply is essential.

BESS can also improve grid resiliency and reliability by acting as standby reserves and supporting faster recovery after disruptions.

Supporting renewable energy integration

BESS facilitates the increased adoption of renewable energy sources by effectively addressing the challenges posed by their intermittent nature.

By storing excess energy generated from renewable sources and releasing it when needed, BESS ensures a steady and reliable energy supply, maximising the utilisation of clean energy.

This, in turn, helps reduce reliance on fossil fuels and supports the UK’s transition towards a low-carbon energy system.

Moreover, BESS can defer or even eliminate the need for costly grid upgrades.

The electricity grid’s transmission and distribution infrastructure must be designed to handle peak demand, which may occur only during a few hours of the year. BESS can help avoid these costly upgrades by meeting peak demand with energy stored during off-peak periods.

Reducing reliance on fossil fuels

BESS contributes significantly to the decarbonisation of the power sector by reducing the need for fossil fuel-based power generation.

By storing excess renewable energy, BESS can displace fossil fuel power plants, especially during periods of peak demand. This displacement leads to a reduction in carbon emissions and supports the UK’s efforts to achieve its net-zero targets.

Enabling electrification

BESS plays a crucial role in facilitating the electrification of various sectors, including transportation, buildings, and industry.

As these sectors transition towards electricity as their primary energy source, BESS can provide the necessary grid support to manage increased demand and ensure a stable and reliable electricity supply.

Challenges and barriers to BESS adoption

Despite the numerous benefits offered by BESS, there are challenges and barriers that hinder its widespread adoption in the UK. These include:

• Grid connection challenges: Integrating large-scale BESS projects into the existing grid infrastructure can be a complex and time-consuming process, often requiring substantial upgrades to accommodate the increased capacity. For instance, some projects have experienced delays due to the need for extensive grid reinforcements.
• Safety concerns: Concerns persist regarding the potential fire risks associated with lithium-ion batteries, although advancements in battery design and safety protocols, such as the integration of fire suppression systems, are actively mitigating these risks.
• Regulatory hurdles: The regulatory framework governing energy storage in the UK is still under development, and inconsistencies in policies and regulations across different regions can create uncertainty for investors and hinder project development.
• Supply chain constraints: The UK heavily relies on imports for critical minerals, such as lithium, which are essential components in battery production. This reliance creates potential vulnerabilities in the supply chain, potentially affecting the availability and cost of batteries.
• Lack of standardisation: The absence of standardised technical and operational procedures within the BESS industry can pose a barrier to wider adoption. This lack of standardisation can lead to interoperability issues and hinder the development of a mature and efficient market.
• Environmental concerns: The production and disposal of batteries raise environmental concerns related to resource extraction, manufacturing processes, and waste management. However, initiatives such as battery recycling and repurposing programs are being explored and implemented to address these concerns.

Economic benefits of BESS in the UK

Beyond its environmental advantages, BESS offers substantial economic benefits to the UK:

• Job creation: The burgeoning BESS industry is generating employment opportunities across various sectors, including manufacturing, installation, operation, and maintenance.
• Investment opportunities: The expanding BESS market attracts significant investment from both domestic and international sources, contributing to economic growth and development. In 2022, the BESS industry in the UK had a total turnover of £7.4 billion, with a projected turnover of £8.6 billion by 2024.
• Cost savings: BESS can help reduce energy costs for consumers and businesses by enabling load shifting and peak shaving. This involves storing energy during off-peak hours when electricity prices are lower and releasing it during peak hours when prices are higher.
• GDP growth: The BESS industry has a direct positive impact on the nation’s GDP by creating job opportunities, increasing investment, and fostering export opportunities.
• Supporting EV growth: BESS can support the growth of electric vehicles (EVs) by providing grid support for EV charging infrastructure and enabling vehicle-to-grid (V2G) capabilities. This interconnectedness between BESS and the EV market further strengthens the economic case for BESS adoption.

Key insights of BESS in the UK

• Enabling a 100% renewable energy future: BESS is crucial in paving the way for a future where the UK’s energy needs are met entirely by renewable sources. By effectively addressing the intermittency challenges associated with renewable energy, BESS allows for a higher penetration of renewables in the energy mix, reducing reliance on fossil fuels and contributing to a cleaner and more sustainable energy system.
• Positioning the UK as a global leader: The UK is well-positioned to become a global leader in energy storage technology and deployment. Supportive government policies, a rapidly growing market, and ongoing innovation in battery technologies are placing the UK at the forefront of the global BESS industry.
• Creating a decentralised and resilient energy system: BESS has the potential to foster a more decentralised and resilient energy system in the UK. By empowering local communities and businesses to generate, store, and manage their own energy, BESS can reduce reliance on centralised power generation and enhance energy security, making the UK’s energy infrastructure more robust and adaptable to future challenges.

Recruitment opportunities in the BESS sector

The rapid growth of BESS in the UK has created a booming demand for skilled professionals across all stages of the project lifecycle. From design and development to installation, operation, and maintenance, businesses in this sector are in constant need of top-tier talent to drive innovation and meet their ambitious energy goals.

Astute is uniquely positioned to support recruitment within the BESS industry. With years of experience in technical recruitment and a dedicated focus on renewable energy, we understand the specific skills and expertise required to succeed in this evolving market.

Our team works closely with clients to identify their unique needs, ensuring we match them with candidates who not only meet the technical requirements but also align with their company culture and vision. Whether you’re looking to scale up your operations or find specialist contractors for a specific project, we can connect you with the talent you need to stay ahead in this fast-paced industry.

If you’re hiring for BESS roles or exploring career opportunities within the sector, get in touch with us today to learn how Astute can help.

Closing thoughts

BESS is a critical enabler of the UK’s transition to a clean energy future.

By providing grid balancing services, supporting renewable energy integration, and reducing reliance on fossil fuels, BESS contributes to a more sustainable, secure, and affordable energy system.

While challenges remain, the future of BESS in the UK is promising, with significant growth projected in the coming years. The continued development and deployment of BESS will be essential for the UK to achieve its ambitious energy goals and become a clean energy superpower.

However, the future outlook for BESS in the UK is not without its complexities.

Policy changes, technological advancements, and market trends will all play a significant role in shaping the future growth and adoption of BESS. For example, changes in government incentives or regulations could impact investment decisions and the pace of BESS deployment.

Similarly, breakthroughs in battery technology, such as the development of more efficient and cost-effective batteries, could accelerate the adoption of BESS across various sectors. Market forces, such as the increasing demand for electric vehicles and the growing need for grid flexibility, will also influence the future trajectory of BESS in the UK.

Despite these uncertainties, the overall trend suggests a positive outlook for BESS in the UK.

The increasing awareness of the need for clean energy solutions, coupled with the declining costs of battery technology and supportive government policies, creates a favourable environment for the continued growth and development of the BESS industry.

As the UK strives to achieve its ambitious energy goals and transition towards a net-zero economy, BESS will undoubtedly play a pivotal role in shaping the future of its energy landscape.

About the author

This blog was written by Tafida Kayum. Recruitment Partner for Astute’s contract team and heads up the BESS desk. Taf has a deep understanding of the BESS sector and is passionate about connecting talented professionals with leading companies in renewable energy and energy storage.

Taf is committed to staying at the forefront of industry developments and uses her expertise to support businesses and individuals in navigating the exciting opportunities within the BESS market.

Connect with Taf on LinkedIn or contact us directly to discuss recruitment needs, career opportunities, or insights into the BESS sector.