Draft Proposal Seeks to Exclude Large-Scale Battery Storage from Power Plant Grid Connection Rules

A draft regulatory proposal has sparked debate over the future treatment of large-scale battery systems within electricity network regulation. The proposal suggests removing battery energy storage from existing grid connection rules originally designed for power generation facilities.

The background to this discussion lies in the growing volume of grid connection applications for battery storage projects. In many cases, requested grid capacity exceeds what has been allocated in current grid development plans, creating challenges for network operators and regulators alike.

Battery systems differ fundamentally from conventional power plants, as they primarily provide flexibility rather than continuous electricity generation. For this reason, existing grid connection rules may not fully reflect the technical role of energy storage in modern power systems.

At the same time, concerns have been raised about excluding battery storage from current regulations without introducing a replacement framework. Abrupt changes could increase uncertainty for developers and complicate grid capacity allocation at a time when storage solutions are becoming increasingly important for renewable energy integration.

Sector feedback emphasizes the need for a transparent and non-discriminatory process for grid access. A future regulatory approach for energy storage policy updates should include clear prioritization criteria, favoring projects that enhance grid stability, relieve congestion, and support renewable energy flexibility solutions.

Such an approach would help ensure that large-scale battery systems continue to play a constructive role in electricity network regulation and long-term grid planning.