Dynamic Containment is making headlines in the field of batteries, but increasing the yield of the energy market is a much more important topic for investors. A speeding-up UK energy change is uplifting news for battery ventures. Inexhaustible targets are rising quickly. Coal, atomic and CCGT limit is resigning. The cold, low wind, and atomic blackouts have seen the network giving six power edge see across Winter 2020-21, with market cost signals answering appropriately. As sustainable volumes develop and firm limit resigns, there is set to be a primary expansion in these times of snugness, bringing about rising returns for adaptable resources. UK battery returns have been out of this world across the colder time of year, principally because of high incomes from the new Dynamic Containment (DC) recurrence reaction administration. In the present article, we take a gander at the elements set to disintegrate the DC party excitement. We likewise backtest battery gets back from wholesale & balancing markets and set out why this is a more significant story for battery financial backers. Dynamic containment is evolving National Grid presented another DC recurrence reaction administration in Q4 2020 which has considerably expanded UK battery incomes. Graph 1 shows Grid’s interest in this assistance (concealed in green – up to 1.4GW) which as of now altogether surpasses the battery limit ready to supply DC (the light blue line – around 0.7GW). Graph 1: Pricing & Volume of Dynamic Containment  Source: National Grid ESO What might be compared to 150 £/kW/year in annualized income terms? DC incomes at these levels are altogether higher than both: Therefore it right now pays for battery administrators to concentrate on DC versus energy market choices, despite the fact that we are beginning to see more cross-market streamlining. Prior to dashing out to put resources into batteries to gather these profits, there are a few changes coming to the DC market that mean a lot to process. The network has hailed a bunch of DC rule acclimations to produce results from late this mid-year. These include: The point of these progressions is to boost battery administrators to offer the minimal expense of administration arrangement, better objective necessities, and lessen by and large expenses. Benchmarking battery revenue shows that the progressions will likewise reasonably drive more batteries into the energy market at night tops, which are for the most part a time of lower recurrence reaction interest, expanding cross-income stream enhancement. The auxiliary services party is beyond midnight Dynamic Containment is endorsing exceptionally sound battery returns in 2021. However, incomes at current levels are a transitory peculiarity. The rollout of the new battery limit in the UK is set to rapidly surpass Grid’s interest in DC administration services (which is probably going to remain somewhat steady). At the place of immersion, premium returns in the DC market will be disintegrated away and this is probably going to happen generally rapidly. There is as of now a little more than 1 GW of battery limit on the web. Another GW will go far to depleting the DC punch bowl. When DC immersion is reached, the evaluation of DC (and its cousin FFR) will be driven by the gamble-changed assumptions for incomes in the lot further energy market (for example discount and adjusting markets). This doesn’t imply that recurrence reaction incomes vanish out, however, they are set to be consigned to ‘side show’ status comparative with energy market returns in the income stack. The DC party might be seething right now, however, the shrewd financial backer cash is looking past DC to the discount and adjusting incomes that drive battery venture cases. So we should investigate how energy market incomes have been advancing behind the fervor of DC. Backtesting battery energy market incomes Graph 2 shows our examination of feasible battery incomes, expecting enhancement against verifiable wholesale and Balancing Mechanism (BM) costs across the most recent 5 years for a 90-minute length battery. Graph 2: Backtested battery energy market incomes (90-minute length) Source: Timera Energy This examination is run utilizing Timera’s stochastic battery dispatch advancement model. This model has upheld interest in many battery projects across Europe. Its remarkable component is it reproduces the viable dynamic interaction that a merchant faces while dispatching a battery (for example catching cost vulnerability and defective foreknowledge). We know this since we work straightforwardly with a few exchanging work areas dispatching batteries. The backtesting investigation includes improving the dispatch of the battery against authentic costs. Our methodology successively ventures through Day-Ahead, Within-Day, and BM optimization (plus the last re-advancement following BM dispatch). At each moment, choices are made in view of accessible market data (flawed premonition). The most frequently cited authentic benchmark for high adaptable resource edges is Winter 2016-17, driven by French atomic blackouts. 2018-19 was a more troublesome period for flex resource returns in the UK, with warm and blustery circumstances and a hearty limit-hold edge. Battery incomes rose altogether in 2020 and have been fundamentally higher across Winter 2020-21, outperforming levels of Winter 2016-17. As a benchmark, battery energy edge found the middle value of 6.8 £/kW/month in Q1 2021 (82 £/kW/year on an annualized premise). This mirrors the fixing UK market balance (with the conclusion and retiring of coal, CCGT, and atomic plants) as well as a quickly rising infiltration of renewables. These patterns are set to characterize the development of the UK power market for a long time to come. DC is getting battery titles in 2021, however, fundamentally expanding energy market returns is a significantly more significant story for financial backers. Building, Design and Construction Magazine | The Choice of Industry Professionals

Conrad Energy, the largest flexible power producer in the UK, continues to put supporting the transition to a low carbon economy at the heart of their strategic plans. Conrad Energy are delighted to have been awarded a stability pathfinder contract with National Grid ESO to help enable the operation of the UK’s national electricity transmission network with zero-carbon by 2025 and to set up the UK to deliver a net zero electricity system from 2035. Sonia Quiterio, Conrad Energy’s New Business Director, said: “This contract award represents a major win to support the UK’s net zero strategy and stabilise the UK’s electricity network. This technology will provide stability services for at least 30 years. These contracts will keep building strong foundations for us to deliver a better world for generations to come.“ Julian Leslie, ESO Head of Networks, said: “These new contracts represent a major milestone in delivering a low-carbon network for the future and will help support the delivery of our 2025 ambition to be able to operate the network at zero-carbon. These contracts demonstrate the type of savings that can be made and the importance of investing in net zero now in order to unlock benefits for consumers for the future.“ Building, Design & Construction Magazine | The Choice of Industry Professionals

A UK developer has used Elon Musk company’s technology to deploy 98MW/196MWh storage system near grid-connection point for world’s largest wind at sea project. This makes it the largest facility of its kind in the UK and, indeed, in all of Europe. Harmony Energy confirmed last Monday that the Pillswood project had been successfully operationalised. It is located in the village of Cottingham, adjacent to the National Grid’s electricity substation at Creyde Beck. Construction has been managed by Tesla, whose Megapack battery products make up the array. The substation where Pillswood is based is the proposed connection point for the first two phases of the Dogger Bank wind farm. This facility will be the world’s largest offshore wind farm once completed, at 3.6GW. It will consist of three 1.2GW phases and the first is set to come online in 2023. The battery storage facility will be crucial to maximizing the efficiency of Dogger Bank. Due to the intermittent nature of renewable electricity, it is beneficial to be able to store electricity in case supply is low at times of high demand. Similarly, there may be high supply at times of low demand, forcing the curtailment of energy. Originally, half of the Pillswood project’s capacity was set to become operational this side of the new year, with the other half due to come online in March 2023. The timetable has been accelerated on National Grid’s request, to help build in more energy security and flexibility this winter amid record-high wholesale energy prices. Harmony Energy’s director Perer Kavanagh said that “all stakeholders have recognised the importance of achieving energisation for this project ahead of winter” despite “a very challenging geopolitical and global supply chain environment”. Kavanagh added: “Battery energy storage systems are essential to unlocking the full potential of renewable energy in the UK, and we hope this particular one highlights Yorkshire as a leader in green energy solutions. “These projects are not supported by taxpayer subsidy and will play a major role in contributing to the net-zero transition, as well as ensuring the future security of the UK’s energy supply and reduced reliance on foreign gas imports.” A rapidly growing sector Harmony Energy is planning to bring five other utility-scale battery energy storage projects online within the next year. It is far from the only company looking to scale its battery storage portfolio in the UK. Back in April, trade body RenewableUK revealed that the UK’s energy storage pipeline had doubled within less than a year, surpassing 32GW. The UK Government’s Energy Security Strategy, published in April, is headlined with an ambition for 95% of the UK’s electricity generation to be low-carbon by 2030. Unabated fossil-fuelled electricity generation should then come offline by 2035. The Conservative Party’s approach prioritises growing nuclear and offshore wind to meet these goals. RenewableUK believes that, as well as the UK Government’s increased support for renewable electricity in the main, the growth of the energy storage pipeline is attributable to a decision to relax planning rules, first announced in summer 2020 and enacted in December 2020. The change enabled local planning authorities to make decisions on larger projects, lifting the previous 50MW cap for England and the previous 250MW cap for Wales, after which point Government intervention was previously needed. We are expecting further major policy changes to be made to support long-duration, large-scale energy storage by 2024. These changes will primarily impact technologies which don’t rely on batteries, such as pumped hydro. Building, Design & Construction Magazine | The Choice of Industry Professionals

Utilities have worked on a new joint venture that will create extra infrastructure and reduce roadworks for residents in the East End of London. For the past 18 months, UK Power Networks and Thames Water have been working with the Mayor of London’s Infrastructure Coordination Service and the London Borough of Tower Hamlets to develop a future-proofing pilot project.  As the Isle of Dogs in Tower Hamlets, is a high growth area likely to need new utilities for future developments, extra cabling tubes have been laid during current excavation work in Byng Street.UK Power Networks, Thames Water, the Mayor’s Infrastructure Coordination Service and the London Borough of Tower Hamlets who fund the project, are driving forward a ‘dig-once ‘approach to avoid future disruption. Delivering quick and efficient roadworks earned UK Power Networks multiple national awards over the past two years, including jointly winning the Highways Partnership Award just last month (October). Now the company is collaborating on this unique scheme. Colin Smith, streetworks manager at UK Power Networks, said: “From ensuring work sites are compliant and safe, to letting people know about our works at an early stage, we do all we can to minimise disruption for people whenever possible. This influential scheme of works will help to secure vital supplies for this area in years to come.” Engineers at UK Power Networks work in consultation with local businesses and community groups, to minimise disruption during the essential work and the collaboration is helping to foster innovation. Deputy mayor for Planning, Regeneration and Skills at Greater London Authority, Jules Pipe CBE, said: “The Byng Street project is a successful example of utility companies and highway authorities collaborating to future-proof strategic locations in high-growth areas. Driving forward the dig-once approach, it demonstrates how innovation in infrastructure delivery brings benefits to local residents, businesses and the environment.” Simon Moore, head of London planning at Thames Water, said: “It makes sense for utility companies such as ourselves and UK Power Networks to better collaborate with the highways authorities. Working closely together we can provide a more streamlined service for local residents and businesses across London and ensure the capital’s infrastructure is ready to meet the challenges of aging assets, climate change and population growth. “Schemes such as in Byng Street show that by working together we can collectively deliver critical asset renewal programmes more quickly, less disruptively and more cost effectively.” UK Power Networks delivers electricity to 2.3 million London properties including homes, businesses, schools and hospitals. With more than 10 million people due to be living in London by 2030, the firm is making sure the electricity network is ready for the future. Building, Design & Construction Magazine | The Choice of Industry Professionals

Innovative ways to replace massive underground equipment without disrupting communities are set to be copied from UK Power Networks’ recent Leicester Square substation upgrade. The firm used a ‘megalift’ self-loading trailer for the first time to reduce each new transformer’s delivery time by four weeks and achieved new heights of community engagement by working closely with local business and community groups to offer them unprecedented insights into the project’s progress. This included working with businesses to design interactive hoardings, sharing video updates and hosting underground tours for about 150 visitors. A youth training scheme was also run to help lift 16–19-year-olds and their families out of fuel poverty towards the national Levelling Up agenda. Both ways of working proved so successful in the £15million flagship project that is now drawing to a close, that project managers across the company’s sites in London, East and South East will now use them where possible in future. Similar hoardings are already being designed at a new East Ham project to protect, communicate and educate, and larger investment schemes now use video updates and QR codes to keep communities informed. Engineers from UK Power Networks have worked with Alliance partner Clancy to finish the two-year upgrade this month ahead of schedule and budget. The project replaced three 60-megawatt, 132,000-volt transformers which were originally installed under Leicester Square in 1991. They weigh 100 tons each and are the size of a shipping container, providing enough energy to power an area the size of Brighton. More than 250,000 people visit Leicester Square daily and the company worked with the Heart of London Business Alliance (HOLBA), the Society of London Theatre (SOLT), and Westminster City Council to help ensure business and tourism could continue and flourish. Ros Morgan, chief executive of the Heart of London Business Alliance, said: “UK Power Networks has been working hand in hand with HOLBA to plan the works around business needs from the outset. With the aim of minimising the impact as much as possible for our members, UK Power Networks took advantage of lockdown, advancing the works as much as possible during this period and reducing the work schedule from three to two years. This infrastructure investment is critical to building a brighter future for this great city.” Jason Gunning, project manager at UK Power Networks, said: “Capital projects don’t get much more sensitive than this; replacing three 100-tonne transformers underneath the heart of London’s theatreland needed to not impact theatre goers, numerous businesses, architecture, and some very precious trees. To add to this, a pandemic made our protecting workers in confined spaces difficult. “Extraordinary planning, care, ingenuity, an innovative and seamless approach to on-site work and community collaboration was the recipe for success and we are sharing this so colleagues and the industry can adopt similar methods. “This project was successfully achieved in two years not three, giving Leicester Square increased resilience and energy capacity for decades to come, and serving one of the UK’s most heavily populated and congested areas.” Neil Byrne, contracts manager at The Clancy Group, added: “‘The Leicester Square project showcased excellent engineering, customer engagement and overcame logistical challenges required to replace the major infrastructure in this iconic location.” UK Power Networks delivers electricity to 2.3 million London properties including homes, businesses, schools and hospitals. With more than 10 million people due to be living in London by 2030, the firm is making sure the electricity network is ready for the future. Building, Design & Construction Magazine | The Choice of Industry Professionals