Government policy on smart tariffs boosts storage market

The confirmation from government that it intends to provide Ofgem with the powers to drive through the move to half-hourly settlement in 2017 has given a boost to the domestic energy storage market, Powervault has said.

The domestic energy storage company said it is already experiencing “strong growth” from the market for storage from the 800,000 homes with solar PV, but the confirmation that the market will expand to around 20 million homes in 2017 has raised confidence in the market.

The Department of Energy and Climate Change included powers for Ofgem to drive through half-hourly settlement in its draft legislation on energy which the Energy and Climate Change Committee has been scrutinising.

Earlier this month Powervault launched its second generation product in readiness for smart tariffs in 2017.

Speaking to Utility Week, Powervault’s chief executive Joe Warren said the time for investing in energy storage is now. “I think in a year or two it will be too late,” he warned.

Powervault is in the middle of its latest round of funding on crowdfunding platform Crowdcube. It aimed to raise £750,000, but has already surpassed its target by amassing £931,840 of investment from 445 investors with 9 days left to go.

The announcement by major automotive manufacturer Nissan that it is entering the domestic storage market also “indicates that there is a great market opportunity”, Warren said.

“It’s great that lots of organisations are confident in the opportunity in the market, we should think about this market as being really big and growing and not think about it being a small pie, there is room for everyone,” he added.

Powervault has been working with Nissan for the last 18 months to develop a product using second-life electric vehicle batteries.

Warren said the company intends to “launch the cheapest and greenest storage product later in the year” using second-life batteries.