The world is powered by energy. Every sector of life depends on one form of energy or another to function effectively. Battery storage, or battery energy storage systems (BESS), enable energy from renewable sources, like solar and wind, to be stored and then released when the power is most needed.
The energy generation and consumption issue is not new to the United Kingdom. There have been working systems in place for the generation of energy. However, the issue lies in the effective storage, utilisation of the energy generated, and sustainability of the sector.
Though the energy sector is quite large, while doing the annual review of our Real-Time Industrial Classification (RTIC) for energy storage, the battery energy systems caught my eye. This article looks into the status of BESS in the UK, its benefits, and the investment opportunities available in this sector.
BESS in the UK
The UK has made tremendous progress and is one of the leading countries in battery energy storage technology and deployment in the world. These UK companies are key industrial players in driving the expansion of the BESS market both nationally and internationally.
According to our data, a total of about 2,600 companies are actively engaged in BESS initiatives in the UK. Noteworthy locations include: the City of London, Westminster, the Vale of White Horse, Barnsley, Lambeth, and Glasgow City. These all serve as vibrant hubs for BESS innovation and implementation.
*This graph does not take into account company deaths.
- 0 Active Companies
Of the Energy Storage companies that are active today, 899 were trading in 2013. We are working on adding company deaths to our platform, and we strive to one day have historical classification so that we can know exactly how many companies were active in 2013, and not just the ones that are still trading today. This is currently in the scoping phase.
Benefits of BESS for the UK
BESS offers several benefits to the UK, including:
- Balancing the grid: BESS can help to balance the grid by storing electricity generated from renewable sources when it is not needed and then releasing it when demand is high.
- Supporting renewable energy: BESS can help support the deployment of renewable energy sources by providing a way to store their output.
- Creating jobs: The UK’s BESS industry is creating jobs in a variety of sales, technical, and engineering roles. Below is a list of some of the most common jobs in the industry, based on data from Lightcast.
- Direct positive impact on the nation’s GDP: The BESS industry has continued to grow, which, in turn, has created job opportunities, as well as increased investment and export opportunities. All these contribute to growth in the UK’s GDP.
The UK’s BESS market is the next big thing
As of 2022, there were over 2,600 active companies in the BESS industry. This resulted in an annual total turnover of £7.4 billion in 2022 and a projected turnover of £8.6 billion by the year 2024.
Several UK-based companies, such as Connected Energy, Renewables UK, and Anesco, provide valuable services within the BESS industry. For example, Anesco has designed and built 144 solar farms and battery energy storage systems.
The BESS market in the UK is growing rapidly, and BESS companies are well-positioned to benefit from the UK government’s investment in renewable energy and the transition to a net-zero economy. BESS companies are also profitable and sustainable, which makes them interesting investment opportunities. Our platform can help to identify these opportunities.
Seizing the Future
The battery energy storage systems market in the UK is not only expanding but has also emerged as a key player in the world’s energy landscape. The BESS industry is experiencing phenomenal growth because of the country’s commitment to renewable energy and the move towards a Net-Zero economy.
The advantages of this sector go far beyond economics, as BESS is crucial to grid balance and the spread of renewable energy sources. Additionally, it is creating job openings in a variety of industries, boosting the GDP of the country. Cities such as Glasgow and London have become thriving centres for innovation and implementation.
Those wishing to become involved in the exciting field of energy storage have a lot to gain by investing in the BESS sector. There are many opportunities, from buying shares in established BESS businesses to investigating specialised funds. With the continued support of the government and all relevant stakeholders in this industry, this market is poised to become the next major development in the rapidly changing energy landscape.