Daily News
New Funding Scheme Unveiled to Attract Investment in Energy Storage Projects
The UK is moving closer to achieving energy independence as the government introduces a new initiative aimed at developing energy storage infrastructure. This initiative could lead to the construction of the first major long-duration energy storage (LDES) facilities in nearly 40 years, providing backup for renewable energy and enhancing the country’s energy security.
These technologies function like massive batteries, storing renewable energy and releasing it into the grid and homes when needed. This includes pumped hydro storage, which stores electricity by pumping water into a reservoir for later use. With a reliable supply of clean, domestically produced energy, these projects would boost the UK’s energy independence and shield consumers from the volatility of global gas markets.
Under the revenue stabilisation system, already applied to electricity interconnectors, energy storage developers are guaranteed a minimum income, ensuring they can meet debt repayments. However, any profits beyond a certain threshold must be shared. This approach helps overcome the high upfront costs that often deter investors, which is essential for expanding energy storage capacity.
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.” He continued, “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.”
The announcement precedes the upcoming International Investment Summit, where the newly elected Labour government aims to attract significant capital. Government analysis indicates that up to 15.3 gigawatts (GW) of long-duration energy storage will be required to achieve net zero by 2050.
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Sources:
https://www.gov.uk/government/news/new-scheme-to-attract-investment-in-renewable-energy-storage