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12 Apr 2024
Shaniyaa Holness-Mckenzie

The battery buildout report: Q1 2024 sees lowest new capacity since 2022

In quarter one of 2024, 184 MW of battery energy storage capacity began commercial operation across six new systems. This amount of battery buildout means total battery energy storage capacity across Great Britain was at 3.9 GW and 4.9 GWh in energy capacity at the end of the quarter.

Shaniyaa looks into the buildout of battery energy storage in Q1 2024.
  • 184 MW of new capacity becoming operational in Q1 2024, the lowest since Q3 2022.
  • The new capacity came from six new battery energy storage units. These range from 19 MW to 50 MW in rated power and one to two hours in duration.
  • Only 190 MW - 500 MW of the 1.7 GW in the pipeline for Q2 2024 is likely to begin commercial operation in Q2.
  • 45% of capacity in the pipeline is delayed by over a year. This is an increase from 37% at the end of Q4 2023.

The Q1 battery buildout was less than half the average capacity seen in 2023

2023 saw record-breaking amounts of new capacity begin commercial operation. 1.7 GW came online at an average of 416 MW per quarter. The 184 MW that started operations in Q1 2024 was less than half of this, and the lowest quarterly addition since Q3 2022.

Throughout this article, there will be references to the battery energy storage ‘pipeline’ and buildout ‘projections’.

  • Pipeline: The list of assets expected to be built in Great Britain. Each of these has an expected quarter in which it will become commercially operational.
  • Projection: A calculation of how much capacity will likely come online based on the rate of new capacity installed in previous quarters.

We previously reported that the highest-ever new capacity in a single quarter was 420 MW in Q4 2023. However, Gresham House’s Trading Update in February stated that the 50 MW West Didsbury battery had begun commercial operation in December 2023. This means 470 MW of new capacity actually became commercially operational in Q4 2023.

Furthermore, based on Gore Street’s Portfolio and Trading Update in January 2024, the 80 MW Stony site began commercial operations in Q3 2023.

Neither of these systems are registered in the Balancing Mechanism. They also do not appear to operate in frequency response services. This limits their operational visibility.

Overall, this means that total battery energy storage capacity in Great Britain stood at 3.7 GW at the end of 2023. The 184 MW of new capacity in Q1 2024 means that the total capacity at the end of the quarter was 3.9 GW.

Six units began commercial operation in Q1 2024

Six units ranging from 19 MW to 50 MW in size began operation between January and March 2024. This includes the second unit from TagEnergy/Harmony Energy’s Jamesfield site. The first unit began commercial operations in Q4 2023.

Download

Modo_Energy_Battery_Pipeline_Q2-Q4_2024.xlsx

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