Mr. Bobby Smith:

Ms Doyle mentioned the forum. We are talking about projects with high levels of capital and operating expenditure. They need long-term revenue support to deliver. We have had success so far in the DS3 market in respect of short-duration batteries because there was a framework of five to six years in which people had some visibility and a stable revenue they could build on. Right now, it is a lot more uncertain for multi-area projects. The only long-term contract that those associated with storage can get right now is through the capacity option. It is a ten-year contract. We recently saw in the T-3 option that there was around 1 GW or more of de-rated gas capacity to be cleared compared with approximately150 MW of de-rated battery capacity. It goes back to why that is the case and how we can change the capacity market to deliver more low-carbon capacity. That entails emissions limits and treating the storage and demand-side response more fairly in the markets so those concerned can compete and secure the long-term supports, because that is essential.

Ms Doyle mentioned congestion products. If we are looking to build storage in constrained areas of the grid, there is no locational signal right now to do so. Given the circumstances on storage and building, sending a clear signal to build in a given region of the grid to receive a contract with a given price support will incentivise development.