National Grid is to announce the winning bids for a battery storage scheme this week.

Thirty-seven companies have submitted bids for the first Enhanced Frequency Response auction scheme to supply 200 MW of power, which will be used to bolster Britain’s energy security.
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National Grid will reveal the winning bids on Friday. The battery arrays will help to manage peaks and troughs in UK electricity production because of the nation’s increasing reliance on volatile wind and solar power.

“This is a new service that is being developed to improve management of the system,” National Grid said.

Power purchaser SmartestEnergy has called on National Grid to provide longer contracts for future frequency response capacity in order to accelerate the emerging energy storage sector.

In a report entitled ‘Making the commercial case for battery storage, SmartestEnergy found the length of grid service contracts are too short to meet lender requirements.

SmartestEnergy consulted 45 battery storage players ahead of the auction to explore the barriers they face to commercialisation.

Developers are concerned that a significant amount of storage capacity will remain untapped if the situation involving limited availability of contracts is not addressed.