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New energy operator pledges to address ‘skipping’ of UK batteries

National Grid’s Electricity System Operator (ESO) which had blamed a lack of cables and ageing computers for the problem, has now been replaced by a new, nationalized body.

United Kingdom’s new, nationalized energy system operator (NESO) has pledged to make changes to the way it operates to placate battery owners who had complained their assets were being “skipped” in favor of natural gas peaker plants.

The chief executives of energy storage companies Zenobe, Field Energy, Harmony Energy, and Eelpower published an open letter, in mid September 2024, stating they wished to work with the privately owned National Grid ESO to resolve the problem of skipping.

Since that criticism, the new public body, NESO, has bought out National Grid ESO.

NESO, on Oct. 16, 2024, reported it had met battery operators and developers, six days earlier, to hear their concerns.

In response, NESO stated on its website that it would carry out further work on “code modifications,” which relates to the grid code which lays out technical specifications for connecting to and using the UK grid.

It also said it would “review and clarify the ’30 minute rule’,” which defines the energy dispathed by the battery energy storage systems in the Balancing Mechanisms. The rule was introduced earlier this year, replacing the previous ‘15-minute rule’, in a bid to allow battery storage assets to dispatch longer thereby creating additional revenue opportunities.

NESO said it would also review balancing reserve and wider reserve procurement strategies. “Balancing reserve” refers to the need to ensure the energy capacity available to cover shortfalls in electricity supply are uniform across the year.

Stating it has calculated the United Kingdom will need “four or five times” its current battery capacity by 2030, NESO also pledged to make four short-term changes to the way it operates.

Changes

The body said it would release an updated electricity dispatch algorithm, without stating when; said it would have “critical new resource” start in its control room from November 2024; would deploy “new transparency tools” by the end of November 2024; and would publish “the LCP Delta definition, methodology, and full report” by mid November 2024.

NESO also committed to meet battery industry representatives again, to review progress, in December 2024.

National Grid ESO spokesperson Craig Dyke reportedly spoke to the “Financial Times” newspaper in response to the original complaint by the four battery company CEOs, and blamed ageing computer systems and infrastructure, including a lack of cables, for the skipping of battery assets.

Dyke reportedly disputed the 90% figure, said a computer system upgrade in December 2023 had brought the skipping rate down to 30%, and pledged to hit single figures after further upgrades in early 2025. The National Grid ESO representative reportedly said the computer systems in place did not enable staff to determine the state of charge of batteries when their services were needed. He also said some constraint of batteries was inevitable when they are too far from electricity demand centers.

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