The operators of electricity storage batteries are emerging as rare winners from the UK energy crisis, as the need to prepare for the threat of blackouts this winter intensifies and market volatility increases.
The batteries help the electricity grid function, providing more energy when demand outstrips supply and storing excess power. Gresham House and Pivot Power are among the companies benefiting from rising volatility in the electricity market as they sell the power to the grid when prices are high and charge up the batteries when they are lower.
“There’s a huge advantage of being active now,” said James Bustin, investment manager at Gresham House, the UK’s largest battery storage operator. “As a result of the energy crisis, we’ve had volatility reach record levels, and batteries make money off of the highs and lows.”