Energy Storage’s Role in Public Sector Decarbonisation

Hello, Champions of Net Zero!

As we venture deeper into the 21st century, the urgency of achieving net zero emissions by 2050 has never been more pronounced. The UK government has set a bold interim target of a 75% reduction in emissions by 2037, using 2017 as the baseline year. This ambitious commitment is galvanising action across the public sector, particularly in enhancing the energy efficiency of public buildings.

So, how do we embark on this transformative journey? The primary strategy lies in improving the building fabric, implementing effective controls, and adopting behavioural strategies to reduce energy consumption. A critical component of this strategy is the installation of low carbon heating systems, such as heat pumps. While these interventions promise to lower direct carbon emissions, they can also introduce uncertainty for building users concerning system optimisation and the potential for increased energy bills. To safeguard public finances and ensure that funds are directed towards essential services rather than soaring energy costs, energy storage solutions must be explored as a buffer against high expenses by shifting energy demand away from peak times.

The UK’s Heat and Building Strategy, unveiled in 2021, underscored the necessity of energy storage in creating a flexible energy system—one that is not only cost-effective and efficient but also secure. The anticipated role of energy storage is clear: through thermal stores, which retain hot water in tanks or district heating systems, and battery storage, which captures energy as electricity. However, the full potential of these technologies remains largely untapped in the UK. According to the Climate Change Committee’s Seventh Carbon Budget, we need to deploy a staggering 35 GW of short-duration battery storage by 2050—a more than tenfold increase from current levels. This stark statistic highlights the significant journey ahead if we are to develop the flexible energy system required for large-scale decarbonisation.

Energy storage will be pivotal in operationalising the decarbonisation of heating across the public sector. Research from CIBSE AM17 (2022) and CIBSE CP1 (2020) points to the numerous economic, technical, and environmental advantages of thermal stores for heat pump systems and district heating. These benefits include system stability, resilience, and, crucially for the public sector, peak-lopping. Peak-lopping allows substantial storage volumes to meet demand during peak times, offering the potential to reduce both the size of electrical grid connections and peak demand charges, ultimately optimising energy expenditures. Given that public sector organisations often face delays and unexpected costs when seeking upgrades from their Distribution Network Operator (DNO) as part of decarbonisation efforts, the advantages of thermal stores should undoubtedly be given serious consideration.

Moreover, the forthcoming Heat Network Technical Assurance Scheme (HNTAS) is expected to build upon the standards established in CP1. Currently, heat networks supply approximately 2-3% of the UK’s heating demand but are projected to account for 20% by 2050 in order to meet net zero targets. With the anticipated integration of low carbon heating plants in energy centres, thermal stores will enhance the flexibility of heat networks, thereby improving the consumer experience. Designers of new or extending existing heat networks would be wise to incorporate thermal stores early in the planning process to avoid unforeseen costs or delays in achieving HNTAS certification.

Battery storage, too, will play a crucial role in enabling the public sector to decarbonise its building stock. When paired with on-site renewable energy sources, such as rooftop solar panels, the energy generated can be either consumed immediately or stored for later use. This capability reduces reliance on the grid, delivering significant cost savings for building users. Additionally, depending on demand, batteries can store electricity imported from the grid during off-peak hours, making it available for use during peak periods or enabling it to be sold back to the grid when prices are favourable.

As with any energy initiative, a thorough appraisal should be conducted to evaluate the specific benefits and limitations of energy storage tailored to each building. It is essential to consider design, spatial, and planning requirements early in the design process to ensure the feasibility of installation.

At Salix, we are proud to manage the Public Sector Decarbonisation Scheme on behalf of the Department for Energy Security and Net Zero. This initiative allows public sector organisations to apply for grant funding for heat decarbonisation and energy efficiency projects, with new schemes typically running on an annual basis. We encourage applicants to adopt a holistic approach to decarbonisation, ensuring that low carbon heating systems are designed effectively while maintaining the thermal comfort of building occupants. Furthermore, projects must demonstrate good value for public money. To facilitate this comprehensive approach, applicants are eligible to seek funding for thermal stores and battery storage alongside the installation of low carbon heating measures in each proposed building. While there are some restrictions on utilising grant funding for commercial gain—such as a prohibition on exporting electricity to the grid—the inclusion of these measures in the eligible technologies list signifies a robust technical justification and political commitment to implementing these technologies as part of a broader suite of decarbonisation measures.

As we strive towards net zero amidst a backdrop of financial constraints across the public sector, it is imperative that public organisations harness their expertise, enthusiasm, and available funding to invest in low carbon solutions that promise long-term value. Energy storage is poised to be a crucial tool in this endeavour, not only for its potential financial savings but also for its growing significance in our collective journey towards net zero.

For more information and resources, please visit www.salixfinance.co.uk.

This article originally appeared in the June 2025 issue of Energy Manager magazine. Subscribe here.

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