Country for PR: United Kingdom
Contributor: PR Newswire Europe
Thursday, February 11 2021 - 18:00
National Grid ESO Announce Highly Successful Results Of Arenko Pioneered Reserve From Storage Trial
LONDON, Feb. 11, 2021 /PRNewswire-AsiaNet/ --

    - Pounds Sterling 195m potential annual savings available for end consumers 
by using batteries 

    - Unlocks pathway to a zero-carbon electricity grid in 2025

    - National Grid ESO confirms ambition to procure Reserve from batteries 
going forward

Arenko, a leading software platform provider to the global energy asset 
automation market, is pleased to announce the highly successful results of the 
Reserve from Storage trial which it pioneered throughout Summer 2020 with 
National Grid ESO. 

Having originally proposed the service to National Grid ESO, Arenko designed it 
in collaboration with National Grid ESO, optimising 41MW of batteries in all 
three trials. 


    -- Batteries can effectively provide sustained Reserve allowing competition
       with other market participants to meet energy imbalances and driving
       cost efficiencies for the end consumer 
    -- Providing Reserve from batteries will deliver increased operational
       resilience and support National Grid ESO's wider ambitions of operating
       carbon free by 2025 
    -- Pounds Sterling 0.7m saving to the consumer realised by using batteries
       participating in the trial versus the alternative solutions throughout
       the 20-day trial in Q3 2020. Using a linear scaling, which may not fully
       capture the true value for the consumer, a potential annual saving of
       Pounds Sterling 195m could be realised if current demand for Reserve was
       met using batteries 
    -- Consumers made a 40% saving by using batteries to provide Reserve
       compared to business as usual 
    -- Batteries were cost effective and represented value in 80% of all
       settlement periods (half hour periods) during the trial 
    -- Over the course of the trial, steady value to the consumer was realised
       at all times throughout the day demonstrating value in a range of market
       and operational conditions 
    -- National Grid ESO confirms ambition to procure Reserve from batteries
       going forward.

A copy of National Grid ESO's report can be found here

What is Reserve

Electricity demand and supply has to be kept in perfect balance on a second by 
second basis to ensure grid stability. While increasing renewable energy 
generation is essential for progressing towards net-zero, this makes power 
generation harder to forecast and match to demand, given the natural 
intermittency of wind and solar power. To deal with this, we need to hold 
'reserve', akin to a substitutes bench to balance the grid when there is too 
much or too little power in the system.

Currently in the UK we get a lot of our 'reserve' from fossil fuelled plants. 
They have to be paid to switch on for 4-6 hours at a time, at part load, so 
that they can turn up or down rapidly to provide reserve as needed. If the UK 
is to transition to a net-zero future, this is unsustainable. It is the 
equivalent of leaving the engine running on your car all the time, just in case 
you need it. This is why Arenko proposed trialling the use of its battery 
technology to National Grid.

Rather than National Grid taking its 'reserve' from fossil fuelled plants, the 
trials have been running using 'reserve' from batteries instead. The great 
advantage is that batteries do not need to be generating power to provide 
reserve, unlike fossil fuelled plants, and so there is no need to switch off 
renewable generators such as wind farms to bring carbon emitting fossil fuel 
plants onto the system at part load. Throughout the trial, batteries charged up 
with large proportions of wind and solar power were able to provide 'reserve' 
cheaper than securing reserve from fossil fuelled plants. 


Arenko believes that procuring Reserve from batteries presents a unique 
win-win-win once the service is scaled for commercial use: The consumer 
benefits from c. Pounds Sterling 195m of annual savings on today's business as 
usual; a pathway to mass deployment of renewables leading to a zero carbon 
electricity grid is made possible; battery owners can generate an attractive 
investment return in a major new market to support the required scale up of 

This is an exportable, UK born solution to a global problem of how to 
transition to a low carbon future. It's not a silver bullet but it's part of a 
suite of services that are crucial to transitioning to economic, secure and 
sustainable energy systems across the globe.

A deep new market for storage

National Grid ESO's System Operability Plan ("SOP") indicated an ongoing 
requirement of up to 2GW of Reserve, which has historically been procured from 
traditional thermal power plants and CCGTs. If this requirement were to be 
satisfied from batteries, the evidence from this trial substantiates that 
consumers would benefit from annual savings of c. Pounds Sterling 195m if the 
savings announced following the trial are linearly scaled over the course of a 

Demand for electricity dramatically dropped as a result of lockdown 
restrictions from COVID which substantially increased the proportion of 
renewables such as wind and solar on the system. Arenko's analysis suggests 
this drove up the requirement for National Grid ESO to procure Reserve to 
c.5GW, representing a view of the future electricity grid's needs in a high 
renewable penetration environment.

Over the next ten years, National Grid (Future Energy Scenarios) expects 
installed capacity of renewables to rise from 40GW today to between 70-104GW in 
2030 (onshore and offshore wind component represents a 2.1-3.0x increase in 
capacity).  At the same time, fossil fuels generation capacity will drop from 
49GW today to 24-40GW. This is likely to drive the requirement for Reserve 
considerably higher than it is today.

Over the same timescale, National Grid forecasts batteries to grow from c.1GW 
today to up to 9GW, in order to balance the increasing intermittency of 
renewables. As evidenced by the trial each new MW installed can offer an annual 
saving to the consumer of Pounds Sterling 97.6k per annum (Pounds Sterling 
11.14 per MW per hour) which represents a 40% saving versus alternative sources 
of reserve.

The challenges faced by National Grid ESO in balancing the system and having 
sufficient Reserve capacity to call on are faced by all international system 
operators and there is significant potential for this model to be exported to 
different markets. 

Rupert Newland, Chief Executive, said:

"Arenko are delighted to have worked with National Grid to develop and deliver 
this important trial, whose results have huge global significance for the 
battery industry.  The trial provides irrefutable evidence that new battery 
technologies, operated using intelligent software, can transform the management 
of the electricity grid to enable the mass deployment of renewable energy, a 
zero-carbon electricity system and the realisation of huge savings for the 

Tom Huddart / Monique Perks / Billy Clegg, Camarco (PR), 020 3757 4980 

Notes to Editors

Arenko Group is a world leading software service provider. Arenko's platform 
uses its proven proprietary automation software and solutions for batteries and 
energy asset owners to optimise their performance. Arenko's platform enables 
clients to unlock value from their systems allowing them to maximise revenues 
and minimise costs. 

Arenko's vision is to be the preferred software platform to unlock value for 
energy assets worldwide.

SOURCE  Arenko Group