Tesla’s batteries ‘really important’ to energy sector, says expert

Battery storage technology, such as Tesla’s Powerwall batteries, will be "really important" in allowing distribution network operators (DNOs) to avoid increasing network capacity in the future, energy industry expert Simon Harrison has said.

The Institution of Engineering and Technology Energy Policy Panel chair told Utility Week those who could really benefit from the new technology are DNOs, who could use it to “offset peak demand problems” on parts of their network.

“Potentially, it could be a way through which a network company could avoid having to increase network capacity, so might end up being a way of deferring or avoiding investment,” he said.

He continued that the impact of the technology would “initially be quite small”, on grounds of cost and the types of tariff that typical domestic users have in the UK. However, over time energy suppliers “may start to look at deals where customers install them”.

He continued: “In the longer term I think storage has got to be a really important part of how we decarbonise.”

Electric car manufacturer Tesla Motors last week unveiled its rechargeable lithium-ion energy-storing battery, Powerwall, which are designed to collect and store excess energy from roof-mounted solar panels and small-scale wind turbines. The company claims the technology will “wean the world off fossil fuels”.

The Powerwall is available in 10kWh form, set up for backup applications or as a 7kWh unit, optimised for daily-use applications. Both can be connected with solar or grid and both can provide backup power.

Tesla said it is working with utilities and other renewable power partners around the world to deploy storage on the grid to “improve resiliency and cleanliness of the grid as a whole”. However, details have not yet been released about any possible deals with UK energy companies.

Deliveries of the batteries begin in the US in late summer and Tesla says there are plans for the technology to be available in the UK before for the end of the year, “with more details to follow”.

While the impact of energy storage technology on the UK energy industry could be huge, the Energy Networks Association (ENA) pointed out: “Networks operators are already trialling larger scale battery storage technology to help accommodate increased renewable energy and shifting demand patterns over the coming years.”

The ENA told Utility Week that battery storage technology “could play a role by reducing the load on the electricity network” as the energy system becomes smarter. “However there will still be challenges and innovation in the distribution network will undoubtedly be required to facilitate a low carbon transition,” the group said.

Last May, the Institute of Mechanical Engineers said the government needs to invest in energy storage to deal with “significant technical challenges” posed by variable renewable generation.