Market Insight

Changes to the de-rating factor of energy storage systems will diminish the business case for short-duration systems in United Kingdom’s capacity market

December 06, 2017  | Subscribers Only

Julian Jansen Julian Jansen Senior Analyst, Solar
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Following a recent consultation, the United Kingdom Department for Business, Energy and Industrial Strategy (BEIS) announced on 5th December 2017 that the de-rating for energy storage systems in capacity market auctions would be reduced by up to 80%. Splitting energy storage assets into different classes based on their duration will particularly affect short-duration systems that rely upon capacity market revenues as part of their business case. 

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