NESO Awards No Contracts to Battery Storage in Stability Market Round 2
The UK National Energy System Operator (NESO) awarded no contracts to battery energy storage systems (BESS) in Stability Market Round 2, despite prior success in the Stability Pathfinder program. All BESS submissions failed technical assessments, while synchronous condensers and open cycle gas turbines secured 7.3 GVAs of contracts. Concerns were raised regarding NESO's preference for synchronous/thermal assets over zero-carbon alternatives, with new technical specifications potentially contributing to the failures.
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In the Stability Market Round 2, the UK National Energy System Operator (NESO) awarded no contracts to battery energy storage systems (BESS) as all submissions failed technical assessments. Synchronous condensers and open cycle gas turbines were awarded 7.3 GVAs of contracts.
Despite operational BESS already participating in the NESO Stability Pathfinder program, the new technical specifications, including fixed H constants, may have led to the failures. NESO's expenditures of £323 on the Stability Pathfinder program aimed to validate BESS for grid stability services traditionally provided by gas plants. Industry sources expressed frustration over the lack of BESS awards, suggesting a bias towards synchronous/thermal assets.
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