Development of decentralised energy and storage systems in the UK

Development of decentralised energy and storage systems

This report was commissioned by the REA to assess key economic and market issues relating to the deployment of decentralised energy and storage.

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KPMG in the UK

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Development of decentralised energy and storage systems in the UK

Key findings:

  • The cost of some decentralised energy technologies is falling rapidly, and demand for more flexible energy supplies is growing with increased penetration of variable renewables.
  • Decentralised energy solutions offer consumers, businesses and communities an opportunity to participate in new existing and emerging energy markets.
  • We have undertaken economic case studies, showing:
    • Small scale – decentralised energy and storage may soon be economic for some domestic and commercial ‘prosumers’.
    • Large scale – large scale storage and demand response are already economic in some circumstances.
  • But there are barriers to market participation for decentralised energy and storage - existing markets, market rules, and institutions are built for a world of large incumbent generators; rules and regulations need to be clear, proportionate and enable investment.
  • Looking ahead, growth of decentralised energy will have far reaching impacts on the sector 

This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG in the UK.

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