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Gowling WLG takes to the stage to discuss energy storage licensing

07 September 2017

Today's All Parliamentary Group (APPG) Energy Storage event on Flexible networks, stronger consumers sees me appearing as a speaker, where I will be talking about the regulatory barriers currently facing electricity storage projects, and the pros and cons of a licensing regime for electricity storage.

As discussed in the previous alert Smart and Flexible Energy System the Department for Business, Energy & Industrial Strategy (BEIS) recently published their plan - or at least their vision - for a smarter more flexible energy future[1]. This provided a clear definition of electricity storage and also a plan to classify electricity storage as a sub-set of electricity generation.

My speech at the APPG event will therefore focus on the consequences of this recognition which will include:

  • there will be a prohibition on undertaking electricity storage in Great Britain, unless authorised to do so by licence or exemption;
  • subject to any changes made to the Class Exemption Order[2], sub-50MW projects will not need a licence;
  • holders of electricity storage licences will have additional obligations under the industry codes as compared to those without a licence;
  • holders of electricity storage licences will also enjoy some benefits, for example access to compulsory purchase powers and avoiding supplier charges for renewable incentive schemes (such as RO, FIT and CFD); and
  • subject to any changes being made, projects with a capacity greater than 50MW will be treated as Nationally Significant Infrastructure Projects from a planning perspective.

How we can help

If any of the topics mentioned in this note strike a chord, we'd be delighted to hear from you.

We regularly advise energy suppliers, aggregators and consumers on participation in demand-side response opportunities. We also have a great deal of experience in assisting developers of electricity generation and storage project, helping them to understand the regulatory regime and the opportunities to 'stack' value from income under the Capacity Market, Balancing Services and the project PPA.

Footnotes

[1] Upgrading our Energy System - smart systems and flexibility plan
[2] Electricity (Class Exemptions from the Requirement for a Licence) Order 2001.


NOT LEGAL ADVICE. Information made available on this website in any form is for information purposes only. It is not, and should not be taken as, legal advice. You should not rely on, or take or fail to take any action based upon this information. Never disregard professional legal advice or delay in seeking legal advice because of something you have read on this website. Gowling WLG professionals will be pleased to discuss resolutions to specific legal concerns you may have.

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