NEWS COMMENT
THE BIG POWER SURGE: UK’S INVESTMENT IN BESS
The UK is emerging as a hub in the global clean tech transition. Rising energy costs, regulatory ambition, and net zero goals are driving investment in battery energy storage systems (BESS), smart energy management, and renewables integration. This has attracted international capital and technology providers, bringing proprietary energy management solutions (EMS) that boost energy security, manage costs, and support renewables adoption. Mark Duxbury, iwell’s UK Country director, explains.
UK’S CLEAN ENERGY MOMENTUM Rollout of BESS capacity across the UK is steadily growing. By the end of 2024, the UK had 4.7 GW of BESS power and 6.5 GWh of storage operational. Analysts estimate the country will need 23-27 GW by 2030, reflecting the scale of opportunity. Investment sentiment is following, with PwC reporting that UK climate tech funding rose 24% last year to £4.5 billion, even as global levels fell. Surveys of global CEOs place the UK among the world’s most attractive destinations for clean tech capital, highlighting international confidence in the sector. All of this is helping to create a virtuous cycle: strong policy signals (net zero targets, grid capacity incentives, renewable energy subsidies), growing technical capability, and increasing private capital.
CHALLENGES AND OPPORTUNITIES Of course, the UK is not without its obstacles. Grid congestion remains a key issue; many local distribution networks struggle to accommodate large new generation or storage projects without costly upgrades. The intermittency of renewables means that smart control systems are just as important as battery capacity. Policy uncertainties, subsidies or incentives, and planning approvals, continue to slow some projects. Still, where things are working, such as long-term contracts, stable regulatory regimes, and technological innovation, returns are looking more assured. This has helped attract both domestic and international investors, eager to back scalable energy storage, smart grid, and EMS businesses.
IN-HOUSE INNOVATION, INTERNATIONAL AMBITION In such a dynamic market, companies such as iwell offers a compelling case study. Founded
and headquartered in Utrecht, it develops both hardware (modular battery storage / BESS) and software (proprietary EMS) in-house. Its EMS uses AI and predictive algorithms, built from more than ten years of data over 300 sites across the UK, Netherlands, Germany and Belgium. This gives the capability to steer multiple energy assets on site in real time, connecting batteries, solar panels, EV charging and grid interfaces, to optimise for cost, carbon (cleanest kWh), and grid constraints. By controlling both
the hardware and the software, iwell can optimise across both, rather than being constrained by third- party integrations. This vertical integration is increasingly attractive in the UK and something an increasing number of like-minded businesses are committing to, where performance, reliability, and grid compliance matter for both investors and regulators. Through its energy trading solution - buying
“Rollout of BESS capacity across the UK is steadily growing. By the end
of 2024, the UK had 4.7 GW of BESS power and 6.5 GWh of storage operational. Analysts estimate the country will need 23-27 GW by 2030”
for renewable capacity rising, energy storage mandated, climate-tech investment growing, and private sector commitment increasing, the fundamentals are there. As BESS projects scale in both size and number, there will be demand not just for capacity but for intelligence: smart control, forecasting, optimisation and grid services. That is precisely where EMS like those developed by innovative providers will likely play a strategic role. Success in the UK will potentially depend on navigating regulatory incentives (e.g. grid-operator tariffs, a contract for difference schemes, capacity market mechanisms), ensuring their EMS is sufficiently robust to deal with local grid constraints, and integrating with UK supply chains where possible to improve cost and shorten lead times. Collaboration with industrial and
commercial customers with high loads - factories, logistics hubs, data centres, large real- estate portfolios - will offer the early proof cases and revenue.
low, selling high, and supporting the grid when it matters most - iwell is showing how clean tech firms are helping businesses maximise the value of their energy assets through intelligent optimisation and detailed financial modelling, capturing diverse savings and revenue streams to reveal greater profitability than high-level analyses typically show.
UK AS A GROWTH MARKET AND WHAT’S NEXT One thing that is clear is that the UK is primed as a growth market. With government targets
6ENERGY & SUSTAINABILITY SOLUTIONS - Winter 2025
POWERING THE FUTURE Investor confidence is on the up, driven by clear policy, economic pressure to reduce energy costs, and the technological readiness of clean energy solutions. With a focus on energy security, cost savings and renewables integration, forward-thinking EMS providers can align tightly with what UK businesses and policymakers are seeking. The coming years could see them help the UK deliver reliable, clean, and affordable energy systems - and in doing so, cement the UK’s position among top growth markets in global clean tech.
www.iwell.eu www.essmag.co.uk
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