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Battery storage making strides in UK capacity market auctions

Battery storage assets representing multiple gigawatts of capacity have cleared the first hurdle towards competing in UK power distribution provider National Grid’s forthcoming capacity market auctions. However, changes to de-rating of battery projects will mean many of those qualified projects will be able to effectively compete for the auction’s subsidies – and there is a risk that this could damage investor confidence in the capacity auction and low capacity battery technology itself. The capacity market works by offering all capacity providers a steady and predictable revenue stream on which they can base future investments – selling electricity into what are essentially fixed contracts. It was set up to incentivize investment in more sustainable, low-carbon electricity capacity at the lowest cost…

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