Battery Energy Storage: Why Flexibility Is Becoming Central to Business Energy Strategy
Updated: Sep 10
Battery energy storage is becoming one of the most important technologies in the UK’s changing energy system. As more renewable generation connects to the grid, electricity demand increases and businesses face greater pressure to manage cost, carbon and resilience, Battery Energy Storage Systems, often referred to as BESS, are moving from a specialist infrastructure topic to a mainstream energy strategy consideration.
For commercial and industrial organisations, battery storage should not be viewed simply as a way to store electricity. It should be assessed as part of a wider approach to energy procurement, solar generation, demand management, data visibility and long-term operational planning.
The UK battery energy storage market is growing quickly
The UK Government’s Clean Power 2030 Action Plan set out an expectation that 23GW to 27GW of battery storage will be needed by 2030 to support clean power. At the time of the plan, Great Britain had around 4.5GW of battery storage capacity, meaning a significant increase is required over the rest of the decade.
That growth is already underway. The Government’s July 2026 Clean Flexibility Roadmap update reported that UK grid-scale battery storage power capacity reached 7.5GW by the end of 2025, with a record 2.3GW energised during 2025 alone.
For businesses, this matters because battery storage is becoming a more established part of the energy landscape. As the market matures, businesses will increasingly need to understand how storage interacts with energy purchasing, network charges, onsite generation, carbon reporting and future electricity demand.
Long-duration storage has reached a major milestone
One of the most significant recent developments is Ofgem’s progress on Long Duration Electricity Storage, known as LDES. In June 2026, Ofgem announced that 16 long-duration electricity storage projects had been provisionally selected to move forward under the LDES cap and floor scheme. The selected projects include pumped storage hydro, compressed air energy storage, lithium-ion batteries and vanadium redox flow batteries.
Long-duration electricity storage is defined by Ofgem as storage that can release electricity for eight hours or more. It is designed to help balance supply and demand when renewable generation is low, such as during still, cloudy or high-demand periods.
The July 2026 Clean Flexibility Roadmap update also reported that the first LDES cap and floor window is supporting 7.6GW across 16 projects, representing 137GWh of electricity storage capacity, subject to final consultation and confirmation.
This is important because it shows that storage is no longer only about short-duration balancing. The UK energy system is increasingly looking at different types of storage for different roles: short-duration batteries for rapid flexibility, and longer-duration assets for extended periods when supply and demand need to be managed.
Grid connections remain a major issue
While battery storage is growing, the market is also facing challenges. In April 2026, the Department for Energy Security and Net Zero and Ofgem published an open letter on connections reform. The letter confirmed that 221GW of projects had been moved out of the main connection queue because they were either not needed for 2035 or were no longer progressing. However, it also highlighted a high volume of battery storage projects advancing through the reformed process.
Even after reform, the letter stated that there was still 14.8GW of battery storage above the top of the Clean Power 2030 battery capacity range for 2030, and 61.7GW above projected battery system need in 2035.
This does not mean battery storage is no longer needed. It means location, viability, connection timing and commercial structure are becoming increasingly important. For businesses considering onsite battery storage, this reinforces the need for proper feasibility work, grid review and commercial modelling before committing to any project.
Battery storage must be used effectively, not just installed
The value of battery storage is not determined only by how much capacity is built. It depends on how well that storage is used.
The Government’s Clean Flexibility Roadmap states that storage must be dispatched efficiently and that the right economic signals are needed so storage is built, located and operated in a way that benefits energy users. The same update also reported battery “skip rates” as one of the metrics being tracked, with a battery skip rate of 35% recorded in May 2026.
For businesses, the message is clear: buying or installing a battery is only one part of the decision. The wider value depends on usage patterns, control strategy, tariff structure, solar generation, site demand, market access, optimisation and ongoing monitoring.
A poorly specified or poorly operated battery may not deliver the expected commercial benefit. A well-assessed system, aligned to real site data and operational requirements, can support a more flexible and resilient energy strategy.
What does this mean for businesses?
Battery energy storage may support a range of commercial and operational objectives, but it is not suitable for every site. Businesses should consider BESS where there is a clear link to one or more of the following:
High or variable electricity demand
Significant peak demand periods
Existing or planned commercial solar PV
Future EV charging requirements
Grid capacity constraints
Operational resilience requirements
Exposure to electricity price volatility
Decarbonisation or Scope 2 reporting objectives
Multi-site energy optimisation
A need for greater control over energy use
The strongest battery storage opportunities are usually data-led. Before considering system size or cost, businesses should understand when electricity is used, how demand changes throughout the day, what generation may be available onsite and how the battery would be controlled.
Battery storage and solar should be reviewed together
For many businesses, battery storage becomes more relevant when assessed alongside commercial solar PV. Solar can reduce reliance on grid electricity during daylight hours, but not every site uses all generated electricity at the time it is produced. Battery storage can help store excess generation for later use, improving the practical value of onsite renewable energy.
This is particularly relevant for organisations with large roof space, high daytime electricity use, demand outside solar generation periods or future electrification plans.
The Government’s July 2026 roadmap also highlights work to make it easier for storage to co-locate with renewable generation, including solar and battery projects sharing infrastructure more effectively.
For businesses, this means solar and battery storage should not be assessed in isolation. The commercial case is often strongest when procurement, consumption, generation and flexibility are considered together.
Why energy data is essential
Battery storage decisions should be based on accurate data, not assumptions.
Key information includes:
Half-hourly electricity data
Peak demand periods
Site operating hours
Import and export profile
Existing electricity contract structure
Capacity and network charges
Solar PV generation potential
Planned operational changes
EV charging or electrification plans
Site constraints and grid connection position
Without this information, it is difficult to know whether a battery will create meaningful value or simply add complexity.
This is where energy management becomes critical. BESS should sit within a wider strategy that includes procurement, risk management, energy monitoring, invoice validation, supplier coordination and renewable energy planning.
How Smarta Energy can help
Smarta Energy supports organisations in assessing battery energy storage as part of a wider energy strategy. We help businesses review whether BESS is commercially and operationally suitable by looking at:
Electricity consumption and half-hourly data
Site demand and peak usage
Solar PV suitability
Current and future electricity contracts
Energy cost exposure
Grid and infrastructure considerations
Funding and delivery routes
Long-term decarbonisation objectives
Our role is to help organisations understand whether battery storage is the right solution, what value it could create and how it should connect to wider energy management activity.
For large, complex and multi-site organisations, this joined-up approach is essential. Battery storage should not be treated as a standalone technology purchase. It should be part of a clear plan for how the organisation buys, uses, generates, stores and manages electricity.
Battery storage is becoming strategic
The latest market developments show that battery energy storage is becoming a central part of the UK’s future energy system.
Government targets, Ofgem’s long-duration storage programme, grid connection reform and the growth of flexible energy services all point in the same direction: electricity users will need to think more carefully about flexibility, resilience and control.
For businesses, the opportunity is significant, but only where the right sites, data and commercial conditions exist.
Battery storage can support smarter energy management, but the starting point should always be a clear assessment of your organisation’s energy profile, operational needs and long-term strategy.
Assess Your Battery Storage Opportunity
Battery energy storage could support a more flexible and resilient approach to electricity management, but every project should begin with a clear review of site data, commercial objectives and operational requirements.
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