Kiwi Power, a global energy technology company that is simplifying distributed energy, has announced that Distributed Energy Resource (DER) owners risk losing almost half of potential revenues if they continue to rely on a traditional fast frequency response (FFR)-only approach to asset optimisation.
The warning comes as Kiwi Power formalises its “Co-optimisation” offering, a revolutionary alternative to traditional optimisation services which is estimated to unlock up to 41% of additional revenue for battery storage and DSR owners.
Co-optimisation refers to the use of multiple market verticals including ancillary and wholesale markets, switching between them so that the asset is always in the right market at the right time. This dynamic and flexible approach also allows asset owners to capitalise on electricity price volatility and other system stress events, generating almost double the projected returns of a traditional revenue stacking approach.
According to National Grid’s 2019 Future Energy Scenarios report, UK storage capacity reaches around 7.5 GW by 2025, an increase of roughly 50%, and increases to around 13 GW by 2030 as increased penetration of intermittent renewables creates greater system flexibility requirements.
Thomas Jennings, Head of Optimisation, Kiwi Power says, “No asset owner wants to leave money on the table and our co-optimisation approach signals a huge revenue opportunity for asset owners. The rise in renewables has created a greater need for flexible assets and so the value is migrating away from the supply of power and towards the supply of flexibility to the grid.”
The latest National Grid ESO Power Responsive annual report notes that electricity system requirements are evolving at both a transmission and distribution level, and additional sources of flexibility are required to meet these needs.
Thomas continues, “As competition grows, an effective battery and DSR management strategy will be key to maximising revenues without being restricted to a single market where competition sees the price pressured. By engaging in co-optimisation, battery storage and DSR owners will position themselves to be in the right market at the right time as the grid continues to change and different flexibility services are needed.”