New scheme to attract investment in renewable energy storage in UK

The UK is a step closer to energy independence as the government launches a new scheme to help build energy storage infrastructure.  

This could see the first significant long duration energy storage (LDES) facilities in nearly four decades, helping to create back up renewable power and bolster the UK’s energy security.  

By having a steady supply of clean, home-grown energy, these projects would strengthen the UK’s energy independence, and protect consumers from volatile global gas markets.  

However, barriers including high upfront costs – despite low operating costs – have held back investment in this critical infrastructure.   

The investment support scheme announced today will boost investor confidence and unlock billions in funding for vital projects which will help create thousands of jobs and deliver clean power as the country accelerates to net zero.     

The announcement follows a consultation held earlier this year which proposed a ‘cap and floor’ scheme to encourage LDES investment. A cap and floor model would provide a guaranteed minimum income for developers, in return for a limit on revenues. 

Great Britain currently has 2.8 GW of LDES across four existing pumped storage hydro schemes in Scotland and Wales, which already play a significant role in powering the country.  

Other technologies include liquid air energy storage, compressed air energy storage and flow batteries, which are currently in development and would benefit from investor support.  

Analysis has found that deploying 20 GW of LDES could save the electricity system £24 billion between 2025 and 2050, reducing household energy bills as additional cheaper renewable energy would be available to meet demand at peak times, which would cut reliance on expensive natural gas.  

Meanwhile, the National Electricity System Operator has estimated that a total of 11.5 to 15.3 GW of LDES will be required by 2050 to achieve net zero.  

Energy Minister, Michael Shanks, said:  

“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.  

We’re reversing a legacy that has seen no new long duration storage built for 40 years - and taking steps to unleash private investment in both established and new technologies.   

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.” 

Find out more here.