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…