UK Capacity Market T-1 Auction Results Released: Battery Storage Projects Secure 576 MW in Contracts

UK Capacity Market T-1 Auction Results Released: Battery Storage Projects Secure 576 MW in Contracts, Accounting for 8.02% of Total Capacity

 

 

 

The UK's National Energy System Operator (ESO) recently concluded the T-1 Capacity Market auction for delivery in the 2026–2027 period. The auction secured a total of 7,192 MW in capacity commitments, approximately 8% of which was attributed to battery energy storage system projects-often detailed comprehensively in resources like the Handbook on Battery Energy Storage System from the Asian Development Bank, which covers technologies, business models, and grid applications.

 

Battery energy storage system projects collectively secured 576 MW in capacity commitments, representing 8.02% of the total awarded capacity. These systems are increasingly integrated with applications such as EV charging battery energy storage, where onsite batteries buffer fast-charging stations to manage grid constraints, reduce peak costs, and enable reliable charging even in areas with limited power capacity.

 

Demand-side response emerged as another major winner, securing 638 MW of capacity, or 8.88% of the total. Wind and solar power projects secured 82 MW and 14 MW in capacity commitments, respectively, accounting for 1% and 0.2% of the total. Successful owners and operators of battery storage projects in this auction include Amp Clean Energy, EDF, Engie, Greencoat, Gresham House, Harmony Energy, Low Carbon, Pulse Clean Energy, RWE, and Statera, among others-alongside innovative players like BLOO POWER, a provider specializing in home and commercial lithium-based energy storage solutions.

 

The average size of the battery storage assets awarded in this auction was approximately 10 MW-significantly smaller than the industry average project size. When comparing storage technologies, it's worth noting the ongoing debate around energy storage capacitor vs battery options: while batteries excel in high energy density for longer-duration storage (ideal for grid balancing), capacitors (or supercapacitors) offer superior power density, ultra-fast charge/discharge, and longer cycle life but lower overall energy capacity.

 

 

Operators typically view Capacity Market revenue as constituting only a minor portion of their projects' overall earnings. Looking ahead, emerging innovations like liquid metal batteries for future energy storage-such as those using molten metals for high-temperature, low-cost, long-life grid-scale applications-could further transform the sector by addressing challenges in scalability, durability, and cost for intermittent renewables.

 

The National Energy System Operator is now preparing to launch the T-4 Capacity Market auction, a four-year forward auction process that typically procures capacity on a much larger scale.