National Grid confirmed the T1 auction in January will see more than 2.1GW of batteries competing for contracts next winter, when they will be used to ensure security of supply and keep the lights on across the UK.
The T4 auction, which will take place in February next year, will see 227 battery storage projects representing around 4.8GW of capacity trying to secure project contracts from 2021 for the following 15 years.
Other technologies to boost energy resilience to be featured in the auctions include pumped hydro, interconnectors and nuclear power stations.
However, BEIS has announced it will lower the de-rating factor for half-hour duration batteries from 96% to 18% for the T4 auction and 21% for the T1 auction.
This will cut the level of backup power payments for energy storage projects.
A spokesperson for BEIS said: “We are satisfied that it is robust and represents the best basis upon which to de-rate storage in the upcoming auctions.”