3. Increased Battery Duration

Current average duration of battery storage capacity in the UK

Consistent growth in BESS duration driven by cost decline

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Phase I
Phase II
Phase III
Outlook

Phase I: 2016-2020

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Asset durations were sized to provide Frequency Response and were therefore predominantly less than 1 hour, making it difficult for batteries to generate revenues from wholesale markets.

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Phase II: 2021-2022

Reduced CAPEX created a strong business case for longer duration grid-scale battery storage assets, which drove increased deployment of assets over 1.5 hours

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Phase III: 2023-Current

Almost half of capacity energized in 2023 was 2 hours or longer in duration.

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Short & Medium Term

The trend of longer duration storage is expected to continue. The number of two-hour duration storage projects energized in 2024 is expected overtake one-hour assets.

Long Term

Durations are expected to continue to increase, with 4-6 hour projects forecasted in 2028. The development of these assets depends on how capex develops in the upcoming years. With lithium in decline, the business case for a longer duration increases. This is also be driven by improvements in technology, standardization, cycling capability and performance.

Data: Solar Media, Modo Energy

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