What is the basis for regulating supercharged energy storage

In Spain, storage installations are legally defined as installations in which the final use of electricity is deferred to a time later than when it was generated, or which convert electrical energy in...

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6 Frequently Asked Questions about “What is the basis for regulating supercharged energy storage”

Is energy storage regulated?

Whilst the Department of Business, Energy & Industrial Strategy (“BEIS”) and Ofgem have been supportive of energy storage and recognise the benefits and flexibility provided by the various technologies, there is no specific legislation on or regulation of storage at present.

Does energy storage need a regulatory framework?

Our review demonstrates that no jurisdiction currently provides a comprehensive regulatory framework for energy storage, with the majority of jurisdictions currently allowing storage to be defined as “generation” for the purposes of licensing and other regulatory requirements.

Why is storage a regulatory challenge?

Consequently, this involves two kinds of regulatory challenges, because storage competes with different types of services. The first kind of regulatory challenge is related to wholesale market design, because flexibility services can be sold in “competitive” wholesale markets (energy, ancillary services, etc.).

Who regulates electricity storage?

Ofgem is the relevant regulator for electricity storage, though as noted above there is no specific storage regulatory regime. Ofgem has recognised that there are regulatory changes required to enable the full commercial development of storage and it has committed to working with other stakeholders to consult on such changes.

Can energy storage provide a large set of Energy Services?

With regard to market design, energy storage is allowed to provide a large set of energy services, according to relatively recent modifications of Californian power market. Currently, energy storage may be used for Daily, weekly, and seasonal arbitrage.

Can energy storage services be integrated at different levels of electrical systems?

According to Medina et al. (2014), energy storage services can be integrated at different levels of electrical systems, in particular at generation, transmission, distribution, and customer level. However, the authors detected some limiting factors.

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