The UK government is aiming to revolutionise their energy landscape through a new Long Duration Electricity Storage (LDES) investment support scheme
This scheme will address longstanding issues that have delayed the development of energy storage infrastructure, particularly in technologies like pumped storage hydro, liquid air energy storage, compressed air storage and flow batteries.
UK’s energy security
The scheme aims to attract private investment by providing a stable financial framework.
This includes a ‘cap and floor’ model, where developers receive a guaranteed minimum income in exchange for capped revenues. This approach, similar to the one used by electricity interconnectors, is designed to mitigate the risk associated with high upfront costs, further incentivising investors to participate in energy projects.
The benefits of this initiative
These initiatives boost the UK’s energy security by reducing reliance on volatile global energy markets, particularly natural gas. By storing excess renewable energy during periods of high production and releasing it during peak demand, these technologies help stabilise the grid and lower household energy bills over the long term.
The government estimates that deploying 20 GW of LDES could save the electricity system £24 billion by 2050, highlighting significant potential cost savings for consumers.
Cleaner energy production
The scheme aligns with wider environmental goals, accelerating the country’s transition to net zero emissions by 2050. This not only supports cleaner energy production but also creates a fertile ground for job creation and economic growth.
The introduction of new storage facilities is expected to create thousands of jobs, particularly in construction and maintenance, while positioning the UK as a leader in clean energy innovation globally.
The scheme will be important in facilitating the development of both established and emerging technologies in energy storage. By diversifying the energy mix and enhancing the resilience of the national grid, the UK aims to strengthen its energy independence and reduce its carbon footprint.
The launch of the LDES investment support scheme represents a pivotal moment in the UK’s energy policy. It signals a proactive approach towards leveraging renewable energy sources more effectively, promoting economic revitalisation, and safeguarding against future energy crises.
