UK needs to triple low carbon flexible capacity by 2030: BEIS

The UK may need to triple its low carbon flexible capacity to 30 GW by 2030 to integrate higher levels of renewable generation, the government said July 20 in a Smart Systems and Flexibility Plan published jointly with energy regulator Ofgem.

In April the UK government announced its sixth Carbon Budget to reduce emissions by 78% by 2035 compared to 1990 levels.

"Our success in achieving this will rest on a decisive shift away from unabated fossil fuels to using clean energy," the Department for Business, Energy and Industrial Strategy said in the report, noting a probable need for 60 GW of low carbon flexible capacity by 2050 to reach net zero.

A boom in flexibility was needed to integrate 40 GW of offshore wind by 2030, support deployment of 600,000 electric heat pumps per year by 2028 and support the recharging of 15 million EVs by 2030, it said.

"All these technologies will need to be seamlessly integrated onto our energy system so that low carbon power is available in the right places and at the right times to meet our energy needs," it said.

The plan focuses on enabling consumer choice via smart tariffs, flexibility services and digitalization.

It seeks to remove barriers to electricity storage and support greater interconnection to neighboring markets.

And it explores how the value of flexibility can be improved via national and local markets, the Contracts for Difference scheme and the Capacity Market.

"This flexibility will be facilitated by regulatory and market reform, investment in innovation, and system digitalisation," it said, noting publication of an Energy Digitalisation Strategy alongside the plan.

On storage, the government would use primary legislation to define storage as a distinct subset of generation, it said.

It would address barriers to the co-location of storage with other forms of generation with the aim of encouraging storage in CfD-backed energy projects, including offshore projects.

Long duration storage

Via the Net Zero Innovation Portfolio, meanwhile, up to GBP68.00 million ($92.60 million) would be available to accelerate commercialization of longer duration (up to four hour) energy storage.

"We expect to announce winners by the end of 2021, with the intention of building at least six demonstrators by March 2025," BEIS said.

On smart meters, the government confirmed a new four-year program from 2022 with fixed minimum annual installation targets for energy suppliers "to drive the consistent, long-term investment needed to achieve market-wide rollout."

On interconnection Ofgem would continue to deliver projects under the current cap and floor regime but it would review its policy, with any recommendations to be published in autumn 2021.

The government meanwhile would address barriers to multi-purpose interconnectors as part of its Offshore Transmission Network Review, consulting on changes by the end of 2021.

Finally the government's GBP1 billion Net Zero Innovation Portfolio would fund low-carbon technologies and systems, including at least GBP100 million for energy storage and flexibility programs.