The UK government has launched a new Long Duration Electricity Storage (LDES) support initiative. This is a crucial step towards achieving net zero emissions and reducing reliance on fossil fuels.
Technologies such as pumped hydroelectric storage, compressed air energy storage, and flow batteries allow LDES to store excess renewable energy generated for later dispatch when required. It enables a great deal of supply-demand matching, diminishes dependency on fossil fuels, and minimizes vulnerability to potentially unstable energy markets.
By investing in LDES, the UK is attempting to shield consumers from rising and variable energy prices while also creating thousands of new jobs—all helping the government meet its net-zero emissions goals. The scheme is expected to attract billions of pounds in private investment and could help the UK achieve its ambitious climate goals.
Energy Minister Michael Shanks stated that “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.”
The government’s announcement follows a consultation earlier this year that proposed a “cap and floor” scheme to encourage LDES investment. Under this model, developers would receive a set minimum income in return for capping their revenue. Ofgem, the UK’s energy regulator, will administer the scheme, which is expected to start accepting applications for its first round next year.
Great Britain currently has 2.8 GW of LDES capacity from 4 pumped storage hydro schemes in Scotland and Wales. These programs are critical to grid balancing and ensuring system reliability. However, to reach the target of net zero by 2050, a substantial scale-up of LDES is needed.
It has been estimated that £24 billion will be saved over the next 25 years if the electricity system deploys 20 GW of LDES. That would cut households’ energy bills, yes, but it also might help to get us off the hook of gas prices that are as high or even higher at certain peak times.
This investment support scheme is a significant part of the UK government’s broader strategy to decarbonize the energy sector and shift to a low-carbon economy. By investing in LDES, the government is demonstrating its commitment to a clean energy future and its ability to attract private investment in innovative technologies.
LDES has numerous environmental benefits, which it can also leverage to support economic development in the UK. Building and operating an LDES plant will create employment in the engineering, construction, as well as maintenance industries. Also, LDES can help to reduce the UK’s dependence on imported energy, which can improve the country’s trade balance and make it more robust as a nation.
For the UK, this shift is vital in creating a sustainable future for its power supply, and this latest government decision supporting LDES development represents an important step towards that goal. Investing in the essential pillar of this technology will contribute to an economy that is cleaner, greener, and more prosperous.
Source: gov.uk