The UK’s shift towards renewable power is creating a clear investment issue.
Drax argues that battery storage has an important role in solving this problem. Wind and solar power are essential to reducing reliance on fossil fuels, but they are variable. Output depends on weather, time of day and season. That creates periods when renewable power is plentiful but not fully usable, and other periods when supply falls just as demand rises.
The UK spends more than £1 billion a year on curtailment, where renewable generators are paid to reduce output because the grid cannot use or transport the electricity being produced. From a capital allocation perspective, that points to an inefficient system with clear room for improvement.
Battery storage addresses this by capturing surplus electricity when generation is high and releasing it when the grid needs support. This helps reduce waste, smooth price pressure and strengthen reliability. It also gives renewable assets a more practical route to market by making their output more flexible and easier to manage.
The timing of electricity matters. Solar output may be strongest in the middle of the day, while household demand often rises in the evening. Wind generation can also fluctuate across days or weeks. Without storage, the system remains exposed to these gaps, which can require more costly backup generation and increase pressure on grid operators.
Reliable baseload generation still has a role, particularly as coal exits the system and demand becomes more complex. Natural gas and sustainable biomass are cited in the source as part of that supporting mix. However, battery storage is presented as a practical tool for improving flexibility rather than a distant concept.
Renewable power is growing, but the grid must become more capable of handling intermittency. Battery storage can help turn variable generation into a more dependable asset by shifting electricity from times of surplus to times of need.
Drax Group plc (LON:DRX), trading as Drax, is a power generation business. The principal downstream enterprises are based in the UK and include Drax Power Limited, which runs the biomass fuelled Drax power station, near Selby in North Yorkshire.
