okay, so build more batteries
Octopus are an energy company, are they not allowed to build their own storage? Or do they just grift off the National Grid and are asking the government to do it
this post was submitted on 05 Jul 2025
24 points (100.0% liked)
UK Energy
286 readers
2 users here now
A place to post links and discussions around the UK's energy production, National Grid, energy consumption, and green energy news.
See https://grid.iamkate.com/ for the UK's current energy production and sources.
Created 23/07/23
founded 2 years ago
MODERATORS
This is part of Octopus's push for regional pricing so that demand can be encouraged local to the generation by dropping the local price. They argue that the saved money on curtailment and repurchasing power in a different location would mean prices could drop across the country
Are they not a for profit company?
Yes. What's that matter?
I guess I'm just wondering why a for-profit company would want to incentivize price drops for consumers
Octopus was set up because they felt they could use technology to out-compete other energy companies by under-cutting them. Their model of operating is to find ways they can drop prices.
It's a model that has served them very well, going from zero to a multi-national energy supplier in about 10 years with more customers than nearly anyone else.
I guess whilst they're in the consumer-friendly phase of their business growth cycle, I'm rooting for them, I just wonder about the future once they've cornered the market
Amazingly, they're huge now and still consumer friendly. Just watch out for when the current CEO leaves.
Just watch out for when the current CEO leaves.
Oof, amen.
Partly, it will be they do care. But also, them appearing to care brings in more customers. This isn't going to change prices anyway, directly, because of the way energy is priced by the most expensive source, gas. Renewable companies already have a great profit margin because they are so much cheaper than gas, but with more storage, it could be cheaper still. I.e. more profit.
Yes, but also greater transmission capacity. And dinorwig style hydro batteries are also super cool.
We haven't got many geographical sites that support pumped storage. They got surveyed back in the 50 and 60s and the ones that were suitable got built.
I don’t think Octopus are a DNO so don’t have any infrastructure. Aren’t they merely a reseller of electricity?
There are a number of projects to add additional HVDC links for power sharing and also a couple of battery storage stations.
The issue with National Grid is that it is subject to funding cycles, currently 5 years and the next one starting April 2026, so have to present justification for government money to improve the grid. They can present white papers during the funding cycle for re openers and sometimes money is spent at risk.
There is a £60bn investment going in to the grid over the next 5 years.
The flow of electricity is now controlled by NESO who are now a government entity, and currently in a separation period from National Grid.
Also, NESO just switched the queue for grid connection applications from "First Come, First Served" to "First Ready, First Connected" because the backlog is so long for DNOs (Distribution Network Operators) that there's a lot of zombied projects that rushed to get the application without planning permission or funding because the wait is so long.
Hopefully this coupled with additional funding and planning reform will be enough to get the extra transmission capacity that is so desperately needed, even for energy storage sites.
So a private company is shaming the government into building infrastructure in their next funding, in the name of public good and wasted sales - that's fair enough
National Grid is a private company
They are funded via OFGEM, and infrastructure building doesn’t happen overnight.
Having a bleeding edge grid would be bad. There is lots of approval and testing that adds to delivery timelines, along with the funding
National Grid is a private company
well shut me up...!