October 10, 2024: The UK government is set to unlock investment opportunities in crucial renewable energy storage technologies, aiming to boost energy independence, create jobs, and position Britain as a clean energy leader. This new investment support scheme will address barriers that have hindered the development of new storage capacity for nearly 40 years, facilitating the creation of backup renewable energy sources.

By enhancing long-duration storage capacity, the initiative could generate billions in system savings, ultimately lowering energy bills. These advanced technologies function like massive batteries, storing renewable energy for later release into the grid and homes when needed. Methods such as pumped storage hydro—where electricity is harnessed by moving water into a reservoir—are among the key solutions being promoted.

Currently, Great Britain has 2.8 GW of long-duration energy storage (LDES) through four existing pumped storage hydro schemes in Scotland and Wales. Other technologies, including liquid air energy storage, compressed air energy storage, and flow batteries, are under development and stand to benefit from this new support.

Research indicates that implementing 20 GW of long-duration energy storage (LDES) could lead to savings of £24 billion for the electricity system from 2025 to 2050. This would lead to lower household energy bills by providing cheaper renewable energy during peak demand and reducing reliance on costly natural gas. The National Electricity System Operator projects that between 11.5 and 15.3 GW of LDES will be needed by 2050 to meet net-zero targets.

Several projects are already in progress, with some anticipated to be operational by 2030. The launch of this investment support scheme will help speed up their completion. Ofgem will design the scheme, which will feature two application routes: one for established technologies and another for innovative new solutions. A similar cap-and-floor mechanism has successfully supported electricity interconnectors since 2014, allowing developers to share revenues with consumers.

In a government press release, Energy Minister Michael Shanks emphasised the urgency of unlocking Britain’s renewable potential, stating, “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, we can boost our energy security, rely less on fossil fuels, protect household bills, and help deliver our mission to make Britain a clean energy superpower.”

This initiative is part of a broader government strategy that includes the launch of Great British Energy, the lifting of the onshore wind ban, and a record number of clean energy projects through its renewables auction. Together, these efforts aim to protect consumers from volatile energy prices driven by fossil fuels while positioning the UK as a leader in sustainable energy solutions.

The UK government's new investment support scheme for renewable energy storage marks a significant milestone in achieving energy independence and sustainability. By addressing key challenges in storage capacity, this initiative will help reduce energy costs, generate jobs, and establish Britain as a frontrunner in clean energy, contributing to net-zero goals and building a more resilient energy infrastructure for the future.