Tag: battery energy storage

To solve northern power bottlenecks, future-proof the grid and UK’s energy storage

29 September 2026

Opinion

This article has been republished with permission from The Sunday Times Scotland.

Britain is making meaningful progress in developing a lower-carbon electricity system, thanks in large part to northern low-carbon generation.

The next challenge is building networks and sources of flexibility that can make the most of that investment, while supporting the growth of businesses and communities across the country.

Britain’s energy system is changing rapidly, and as it does it reshapes how regions are positioned to compete for opportunities to grow and prosper.

Offshore wind has become a major source of electricity, solar is growing rapidly, and investment into onshore renewables, energy storage and other forms of generation continues to advance.

Changing how we generate electricity also changes the demands we place on the grid.

One of the most noteworthy challenges is simply where electricity is being generated compared with where it is being used.

Why is electricity generation concentrated in Scotland and northern England?

A majority of the UK’s new generation and storage is being developed in Scotland and the north of England. Together, these areas account for more than half of Britain’s low-carbon generation capacity, while representing less than a fifth of electricity demand.

So, when the wind is blowing strongly in Scotland, for example, there can be a significant electricity surplus produced in the north while demand is much higher elsewhere.

Transmission lines whisk most of this power away to other regions experiencing higher demand, but there are limits to how much the system can handle at one time. Once those limits are exceeded, generators are often compensated to reduce their output – and the UK has already paid out more than £1bn in wind curtailment costs this year.

Solar adds another dimension. Large solar farms are now an established part of the generation mix, while thousands of homes and businesses are generating their own electricity from rooftop panels.

On a sunny summer day, solar can make a significant contribution to meeting demand but, naturally, output varies throughout the day and falls away altogether overnight.

Wind and solar are very different technologies, but they have something important in common: their output depends on the weather, and neither is guaranteed to produce electricity at the same time or place as it is needed.

Energy storage from technologies such as batteries and pumped hydro storage can soak up some of this excess power and deploy it when demand is high but, despite a recent battery boom, capacity today is still nowhere near the levels needed to utilise all of it.

Why does Britain need more transmission capacity?

To reduce our reliance on power redirection, there is a clear need to improve the network itself. That means continuing to invest in high-voltage transmission infrastructure, including new lines and subsea connections.

High-voltage direct current links will also have an important role to play in moving large amounts of electricity between regions.

This is particularly relevant as electricity becomes more important to the wider economy.

We need to think about the electricity network not just in terms of keeping the lights on, but as part of the infrastructure that supports economic growth.

A business deciding where to build a new factory, data centre or other major facility needs to know that it will be able to get the electricity it requires. Long connection times can make that decision much harder.

How is clearing grid connections backlog helping viable projects move forward?

The legacy first-come, first-served approach left more than 700GW of projects waiting for grid connections, including projects that are less likely to get built or less strategically vital. Prompting the National Energy System Operator’s (NESO) move towards giving greater priority to projects that are viable and strategically important is a sensible development.

We need to make sure that genuine projects can progress, while avoiding a system where network capacity is effectively reserved for projects that are less likely to go ahead. Getting this right will help unlock investment that is currently waiting on the sidelines.

What role do energy storage and flexible generation play in an efficient system?

A system that is increasingly reliant on wind and solar needs to be able to respond to generation changes and demand mismatches.

To maximise renewable generation at scale, the system needs to adapt seamlessly, shifting power across timelines and geographies to meet demand head on. When a diversified generation and storage portfolio is paired with a flexible grid, the system can absorb volatility to keep reliability, affordability and sustainability all stable under pressure.

Our acquisition of Scotland-based asset optimisation platform Flexitricity earlier this year reflects a key component of this mix, incorporating a tech-enabled solution to help streamline how and when organisations use power in response to the needs of the system. Long-duration storage, including pumped hydro, can also help by storing electricity when it’s abundant and releasing it when it’s needed.

Gas and biomass generation can also provide dispatchable power when the system needs it, helping to provide the reliability that consumers and businesses expect. As the generation mix changes, having a range of technologies that can respond at different times will become increasingly important.

It’s critical to remember that no single technology can solve every problem. The electricity system of the future will need the right combination of generation, transmission, storage and flexibility to meet projected demand consistently.

Powering future economic opportunity with a stronger electricity grid

Power is essential to all economy opportunity, and reliable access to power is a game-changing differentiator at both the regional and national level.

As electrification continues to advance across major industries ranging from technology and transportation to manufacturing and healthcare, it’s increasingly clear that power has become a prerequisite for growth.

At the same time, building and upgrading the grid requires engineers, construction workers, manufacturers and a wide range of specialist businesses. Developing energy infrastructure can support skilled jobs and supply chains across the country.

There is an opportunity here to make sure the benefits of the energy transition are felt beyond the places where electricity demand is highest. Scotland and the north of England have enormous renewable energy potential, and better connections can open opportunities and help attract industries that want access to clean and reliable power.

That could be particularly important as Britain looks to strengthen its industrial base and compete for investment in areas such as manufacturing, technology and other energy intensive industries.

Companies like Drax are already working to build out the right mix of low-carbon generation and storage to meet the needs of the future. The next step is to ensure the infrastructure surrounding that generation is capable of keeping pace.

A stronger transmission network, a more effective approach to grid connections and a good mix of flexible technologies will allow us to make better use of the electricity we are already generating.

It will also give businesses, consumers, investors, and governments greater confidence that the power they need will be available when and where they need it.

The energy transition is changing not just how Britain generates electricity, but where that electricity comes from and how the energy system as a whole needs to operate.

If we build the right system, developing the network alongside our changing generation mix, that flexibility will help to insulate against market shocks, improve affordability, unlock future innovation, and strengthen our collective competitiveness for current and future economic opportunities.

Why flexibility has become the UK’s shock absorber

7 August 2026

Opinion

This article has been republished with permission from Enlit World.

Will Gardiner, Drax CEO

Britain’s electricity system has never stood still. Over the past century it has continually reinvented itself to meet the needs of the country it serves.

The first major tasks of energy transformation in the twentieth century included mass electrification and cleaning up power generation – driven by the formation of the National Grid in 1926, the phase out of coal, and the growth of renewable energy.

Today, three major pressures have converged including the continued growth of renewable energy, which is bringing greater intermittency into the electricity system, electricity demand is rising sharply as more sectors electrify and the grid is coming under greater strain as new technologies and infrastructure connect to the network.

These are creating a new defining test: building system flexibility that can respond to more variable supply, volatile demand, and a strained grid. Flexibility is not a nice-to-have. It is the system’s shock absorber.

Essential flexibility

Flexibility operates on both the supply and demand sides of the energy equation, in the form of storage, generation (dispatchable and renewable), smart energy management, and shifting workloads.

Achieving this depends on a range of technologies – including transmission infrastructure, flexible generation assets, long-duration energy storage and battery energy storage systems (BESS), and asset optimisation platforms that help manage electricity demand and supply in real time – each playing an important role in supporting a more resilient grid.

No single technology provides the answer. Together, they help balance intermittent renewable generation, maintain system reliability, improve resilience during periods of high demand and reduce overall system costs.

As energy requirements continue to evolve, flexibility has become just as important as generation itself in ensuring the UK can deliver a secure, reliable and lower-carbon electricity system.

Beyond energy

Getting flexibility right delivers benefits that extend well beyond the energy sector.

Recent geopolitical events – from Russia’s invasion of Ukraine to renewed tensions in the Middle East – have highlighted how quickly international energy markets can become volatile. Energy security and national security are becoming increasingly difficult to separate.

Greater domestic generation and increased system flexibility can help reduce that exposure, improve overall system efficiency, support more stable long-term energy costs, encourage investment and job creation, and strengthen the UK’s industrial competitiveness.

Most importantly, it creates the platform for broader economic modernisation. A flexible and resilient electricity system will help enable the technologies, industries and businesses that will drive the UK’s next chapter of growth.

Powering innovation

Any discussion about the future of the UK’s electricity system quickly turns to artificial intelligence. The UK Government forecasts that the country will need at least 6GW of AI-capable data centre capacity by 2030, which is roughly three times more than today’s capacity.

Data centres’ energy needs constantly fluctuate – sometimes by hundreds of megawatts per minute. As workloads surge, pause and restart, the challenge cannot be met by more power alone, but also needs to account for how that power is managed dynamically.

AI will undoubtedly play an important role in shaping future electricity demand patterns, but it is only one part of a much broader picture.

Reliable electricity underpins almost every area of modern innovation. We often think about breakthroughs in healthcare, advanced manufacturing or artificial intelligence as separate stories. The reality is they are not.

They all have one thing in common: they depend on a resilient, flexible electricity system. From more effective cancer treatments and AI-enabled medical imaging to increasingly automated factories and the data centres powering the digital economy, electricity is what makes those innovations possible.

I’ve always considered energy the silent partner behind economic growth. It may not always be the focus of public attention, but it is fundamental to enabling innovation across every sector. However, flexibility is what will decide whether that partner can keep up.

Without a system that can respond to changing patterns of demand, many of those ambitions simply cannot happen at the same speed, or they come at greater cost.

This changing reality has shaped our own thinking. We’ve been evolving from a predominantly single-technology business into a provider of system flexibility.

Defining test

Today, we’re investing across open cycle gas turbines (OCGTs), BESS and renewable generation. Our recommended offer for Bluefield Solar Income Fund has the potential to add approximately 900MW of solar and wind generation. Combined with our other flexible generation assets, our portfolio could exceed 3GW of power capacity if our offer is accepted.

For me, that’s not simply about growing our portfolio. It’s about ensuring we’re investing in the dynamic capabilities the UK will need to power progress. This is where Drax can play a different role not just producing power but helping the system respond when it matters most.

The UK’s electricity system has continually adapted to meet new challenges over the past century, and effectively managing rising demand, intermittency, and more complex patterns of supply and demand will be no different.

That is why the next phase of our energy transition relies not simply on generating more renewable power, but ensuring we have the flexible infrastructure required to use it effectively.

Global competition for battery storage

22 June 2026

Opinion

Britain is building batteries faster than any other part of its power system. Installed capacity has tripled in just three years. Batteries can now discharge more power than the entire nuclear fleet, a sign of how quickly the grid is changing. Since construction of Hinkley Point C began, Britain has installed nearly 7 GW of batteries. Hinkley Point’s 3.2 GW of reactors will not come online until at least 2030 (five years late), whereas new battery projects can be built in a matter of months.

Britain’s battery capacity has risen from 10 MW to nearly 7 GW, overtaking the headline capacity of the entire nuclear fleet in under a decade. The two technologies are not directly comparable, as batteries can only discharge for 1–4 hours before recharging, whereas nuclear reactors provide steady output around the clock.

Britain’s battery boom is impressive, but it must compete in a global race for investment. Storage is growing faster overseas as countries seek flexibility to absorb more wind and solar. Investors follow price signals, and battery revenues shift quickly with market regulations and price spreads. Battery revenues vary by one-quarter from year to year, so today’s hottest market can soon become crowded and less attractive.

Turkey shows how quickly the race can shift. It now has Europe’s largest pipeline of battery projects, beating Germany and Italy combined. This surge reflects a fast-growing power system turning to wind and solar to cut imports. Since 2022, new wind and solar projects have had to add battery capacity equal to their generation capacity.

Britain is taking the opposite approach: rather than mandating battery construction, the market decides how much to build. Tighter co-location or balancing requirements could make wind and solar more compatible with system operations, but could risk stalling investment. The Government is leaning towards market signals, with the Clean Flexibility Roadmap aiming to remove barriers and improve price signals for storage.

Energy storage helps Britain use more of the electricity it generates. Batteries respond to short-term swings in supply and demand within seconds, while pumped hydro provides large reservoirs to deliver electricity during longer periods of system stress. Together, they store surplus wind and solar to cut curtailment, and release it when demand peaks to smooth out prices.

To support the Clean Power targets, Britain must more than triple its current storage capacity by 2030. After building 5 GW of batteries in the last five years, Britain now has five years to build the next 20 GW. This will rely on investors remaining convinced this is Europe’s best place to build.

Read the full Q1 2026 Electric Insights report here.

Harnessing Scotland’s landscape to power a renewable future

20 March 2023

Pumped storage hydro

Key takeaways:

  • Scotland’s ambitious plan to expand its wind capacity­ and reach net zero by 2045 will require greater levels of energy storage
  • Plans to expand the storage and generation capacity of Cruachan pumped storage hydro station from 440 MW to over 1 GW can help support a re­­newable future
  • Greater levels of energy storage can also reduce the costs of operating the grid and enable the greater utilisation of renewable electricity sources such as wind.
  • Expansion plans for Cruachan would bring as many as 900 jobs during the construction phase across the supply chain and continue Drax’s commitment to local communities and environments
  • The project is a large-scale and long-term infrastructure solution to some of the critical issues faced by Scotland’s electricity network.

The hit Star Wars TV series Andor might be set a long time ago in a galaxy far, far away, but audiences in Argyll and Brute may recognise a local landmark on the titular distant planet.

Cruachan Power Station’s 316-metre-long buttress-style dam served as a setting for the space thriller. However, here on planet Earth, it has another big role to play in supporting Scotland and the UK’s efforts to reach net zero emissions.

The pumped storage hydro station, known as the ‘Hollow Mountain’, complements Scotland’s wider strategy to expand its onshore wind capacity to 20 gigawatts (GW) by 2030. The plant’s ability to absorb excess electricity at times of low demand, and discharge it again when needed, allows it to play a key role in balancing and supporting the national transmission system.

As Scotland and the rest of the UK move to a future increasingly powered by intermittent renewables, ambitious plans to increase Cruachan’s capacity to more than 1GW, will also help create jobs in Argyll and Bute and support communities through the net zero transition.

Scotland’s wind power potential

Scotland’s famously blustery, wet weather and dramatic landscapes of mountains and lochs has long enabled it to pioneer hydro schemes along its rivers, pumped storage hydro on its mountainsides, and wind turbines on and offshore.

Wind power contributed heavily to Scotland achieving 97% renewable electricity generation in 2020. And with more than 17 GW of additional capacity in the pipeline, Scotland has the potential to be the wind powerhouse of the UK – in 2021, Scotland exported 33% of its generation in net transfers to England and Northern Ireland, having previously set a record 37.3% in 2020.

However, simply generating a lot of power isn’t the whole story. Generating too much power can even be a problem for grids if there is nowhere for that power to go. Currently, constraints in the transmission system limit how much power can be exported from Scotland to meet demand in other parts of the UK.

When generators start producing these surpluses, the grid operator has to pay wind farms to turn them off. It’s estimated that wind curtailment costs added £806m to energy bills in Britain in 2020 and 2021. This is where energy storage comes in, offering somewhere for power to be redirected and reducing curtailment costs.

Enter Cruachan. At maximum load Cruachan Power Station can generate 440 MW, enough to power 1 million homes, when water from the upper reservoir is released, flowing through the plant’s four turbines, and entering Loch Awe below. But when there is more electricity on the system than demand, excess electricity can be used to power turbines that pump water up from Loch Awe to the upper reservoir where it’s stored until needed.

Pumped storage hydro, as this system is called, offers long-term, large-scale energy storage to the UK’s electricity system, helping to reduce costs and prepare for a renewable-led future.

The large-scale, long-term storage solution

Since opening in the 1960s Cruachan has only become more important in helping to stabilise an increasingly renewable UK, while supplying ancillary services like inertia to the grid. The Cruachan expansion plan to expand the facility and bring its ability to absorb and discharge electricity to more than 1 GW can offer a host of benefits to the grid and power to consumers across the country.

Cruachan’s ability to reach full generating capacity in less than 30 seconds means that it can respond quickly to fluctuations in supply and demand. When Cruachan provides power back to the system in times of high demand, it can in turn lead to lower peak power prices. This becomes even more important at a time of high gas prices, when ordinary consumers are feeling the impact of rising energy costs more than ever.

Increasing Cruachan’s capacity to generate and absorb power can help reduce transmission system costs and wind curtailment. It also offers a zero-carbon source of stabilising ancillary services to the grid, which have historically been provided by gas generators. As the proportion of gas generation decreases and the proportion of intermittent renewables generation increases, low-carbon generators that are able to provide these services will become increasingly more important.

Importantly, the Cruachan expansion is a long-term solution. The expanded facility would have an operational life span of more than half a century, significantly longer than the 10-15 years offered by lithium-ion battery storage solutions.

However, there is a need for a financial mechanism to de-risk the project for investors and offer value for money for consumers. The cap and floor mechanism, which ensures generating revenues remain within a specific range, is currently used for interconnectors to stabilise revenues by offering sufficient certainty to investors that income will cover the cost of debt, which unlocks finance for new projects. A similar mechanism could be introduced to support energy storage technologies that will be needed to support a renewable future, such as the Cruachan expansion. The UK government must act quickly to implement the mechanism and realise the opportunity that storage can provide to the UK and Scotland.

Making the Cruachan expansion a reality  

Expanding Cruachan is a long-term, large-scale project that will create a range of jobs and economic benefits and help support the local economy through the transition to net zero.

“I am absolutely delighted that Drax is progressing plans to expand the Ben Cruachan site,” says Jenni Minto, Member of Scottish Parliament. “This will not only support 900 jobs and create a pumped storage facility that will be able to provide enough renewable energy to power a million homes, it will provide £165 million benefit to the local economy during construction.”

In addition to 150 on-site local construction jobs, the project’s supply chain will create opportunities across a range of industries, from quarrying and engineering, to transport and hospitality.

 “The Cruachan extension is a really exciting project and one that’s really important for Scotland.” says Claire Mack, CEO Scottish Renewables. “It brings together a number of our really important skills, including civil engineering and electrical engineering. What we really want to see is a renewables industry that’s thriving but also driving economic gain in Scotland.”

Cruachan has operated in the region for more than half a century and has supported local communities through more than just job creation. This includes a donation to The Rockfield Centre in Oban to help fund a new community hub, offering education as well as a social space. Following Cruachan’s appearance in Andor, Drax also made a five-figure donation to several charities and good causes across Argyll, including Oban Mountain Rescue’s efforts to create a rural defibrillator network.

As well as lending a helping hand to local communities, Cruachan’s teams have always taken precautions to minimise any impact on the natural environment and preserve the area’s biodiversity and natural beauty.

The Cruachan expansion is an engineering project on an epic scale. It will involve carving huge new underground caverns, tunnels, and waterways out of the rock below Ben Cruachan. But in doing so it will create long-term opportunities for the local community and a key piece of infrastructure to take Scotland into a net zero future.