UK unveils investment support for renewable energy storage

Britain on Thursday announced a new support scheme for renewable energy storage projects that will give developers of long-term energy storage (LDES) facilities a guaranteed minimum income.

The UK government expects to open the first round of the scheme to applicants next year under a so-called “cap and floor” model, which would provide a guaranteed minimum income for developers in exchange for an income cap. Energy regulator Ofgem has agreed to act as regulator and delivery body, the government said.

The UK currently has 2.8 gigawatts (GW) of LDES in four existing pumped storage hydro schemes in Scotland and Wales.

Other LDES technologies that could be included in the new scheme include liquid air energy storage, compressed air energy storage and flow batteries, which are currently in development and would benefit from investor support.

The government cited the findings of an analysis that the deployment of 20 GW of LDES could save the electricity system $31.4 billion (£24 billion) between 2025 and 2050. Energy storage could also reduce household energy bills, because additional cheaper renewable energy would be available to meet peak demand, which would reduce reliance on expensive natural gas.

“We’re taking back a legacy that wasn’t built by us for 40 years of long-term storage – and taking steps to unleash private investment in both established and new technologies,” said Energy Minister Michael Shanks.

In another boost to emerging technologies, the UK government last week announced around £22bn of funding to build carbon capture facilities in the north. The amount is equal to about 29 billion dollars.

The announcement confirmed up to £21.7bn of funding available over 25 years to make the UK an early leader in carbon capture, use and storage (CCUS) and hydrogen.

The Government has announced major funding for two carbon capture sites which are set to boost growth in the industrial heartland of North West and North East England – creating 4,000 jobs directly and supporting 50,000 jobs in the long term.

By Tsvetana Paraskova for Oilprice.com

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