UK investment scheme to boost energy storage infrastructure

Posted by Admin October 10, 2024 Infra

LDES technologies include pumped storage hydro. Credit: David Pimborough / Shutterstock.

The government of the UK has launched a new investment support scheme aimed at bolstering the country’s energy storage infrastructure.

The initiative aims to encourage the development of long-duration energy storage (LDES) facilities, which have not seen significant investment in nearly four decades.

LDES technologies, including pumped storage hydro, are essential for maintaining a consistent supply of clean energy.

Such projects are critical for storing renewable energy and ensuring its availability on the grid as needed, acting as giant batteries.

Despite low operational costs, the high upfront costs of these technologies have historically impeded investment.

The newly announced scheme is designed to enhance investor confidence and unlock billions in funding for these vital projects.

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It is expected to create thousands of jobs and contribute to the nation’s clean power supply as it progresses towards its net zero goals.

The announcement precedes the government’s International Investment Summit, which aims to re-establish the UK’s position on the global stage and stimulate a decade of economic renewal.

The scheme’s introduction follows a consultation proposing a “cap and floor” model to incentivise LDES investment.

This model would guarantee a minimum income for developers while capping revenues. Ofgem, the UK’s energy regulator, has agreed to oversee the scheme, with the first round for applicants expected to open in 2025.

Great Britain currently has 2.8GW of LDES capacity across four pumped storage hydro schemes in Scotland and Wales.

Other technologies, such as liquid air energy storage, compressed air energy storage and flow batteries, could also benefit from the scheme.

Studies suggest that deploying 20GW of LDES could save the electricity system £24bn between 2025 and 2050, potentially reducing household energy bills as reliance on costly natural gas decreases.

The National Electricity System Operator estimates that achieving net zero by 2050 will require between 11.5GW and 15.3GW of LDES. Several projects under development are expected to become operational by 2030, and the new investment support scheme is set to facilitate their delivery.

UK Energy Minister Michael Shanks stated: “We are wasting no time in unlocking Britain’s vast renewable potential by expanding wind and solar power. But we also need to increase our ability to store this energy for when the sun isn’t shining, or the wind isn’t blowing.

“With these projects storing the surplus clean, homegrown energy produced from renewable sources, we can boost our energy security by relying less on fossil fuels, protect household bills and help deliver our key mission to make Britain a clean energy superpower.”

In September 2024, the UK government acquired the National Grid’s Electricity System Operator for £630m to enhance energy security, reduce bills, and expedite its clean energy objectives.