Comment: Scottish Power Proposal to De-rate DSR Can Harm the Storage Market

The UK capacity market in its current format is surrounded by a lot of uncertainties. Battery storage sector around the world hasn’t until this point managed to create feasible and commercially viable business cases to begin mass-sales/installations. Suggesting such proposals now harm the sector especially that business models are still opaque. Scottish Power has vested interest in pumped storage and de-ratting batteries work in its favour.

The bottom-low clearing capacity market auction prices and the latest de-rating factors created many challenges for bidders. DSR already had a lot of challenges and the government should work on improving the conditions for bidders instead of making it tougher on them.

We do realise the necessity of continuous reforms of the capacity market until it is extremely efficient to serve the cause it was created for. But we need to remember that changes should be fair to all parties and introduced at the right time. And let’s not forget the needs of the customer.  The generators and NGC have a duty to meet the energy needs of the consumer – political posturing doesn’t help the lights stay on!