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In its response to EAC’s report, published today, the Government has set out the steps it is taking to remove market barriers so as to support the rollout of energy storage projects at scale, in order to keep the lights on when renewable energy generation is low.
This announcement follows the £32.8 million funding awarded to 5 UK energy storage projects across the country in November 2022 to create first-of-a-kind prototypes of their technology. A total of £69 million of funding has been awarded so far through this programme, helping to drive innovative technologies such as energy storage.
Long Duration Electricity Storage investment support scheme will boost investor confidence and unlock billions in funding for vital projects. The UK is a step closer to energy independence as the government launches a new scheme to help build energy storage infrastructure.
The Department for Energy Security and Net Zero (DESNZ) said the new investment scheme could spur the first major long-duration power storage facilities the country has seen in almost four decades.
Minister for Energy Security and Net Zero Graham Stuart said: Storing energy for longer periods is vital to build a robust and secure energy system and ensure that renewable energy is used efficiently. Fortunately the UK has a wealth of pioneering businesses that are making their mark on this industry.
The new energy storage scheme will include a cap on the revenues of project owners, forcing them to share some or all profits above a set threshold, while a minimum floor price will guarantee certain revenues for operators.
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