The UK on Thursday announced a new support scheme for renewable energy storage projects, which will offer developers of long-duration energy storage (LDES) facilities a guaranteed minimum income.
The UK government expects to open to applicants next year the first round of the scheme under the so-called ‘cap and floor’ model, which would provide a guaranteed minimum income for developers, in return for a limit on revenues. Energy regulator Ofgem has agreed to act as regulator and delivery body, the government said.
Currently, Great Britain has 2.8 gigawatts (GW) of LDES across 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 findings of an analysis that deploying 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 as additional cheaper renewable energy would be available to meet demand at peak times, which would cut reliance on expensive natural gas.
“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,” Energy Minister Michael Shanks said.
In another boost to emerging technologies, the UK government last week announced funding of some 22 billion pounds for the buildout of carbon capture facilities in the North. The sum is equal to some $29 billion.
The announcement confirmed up to £21.7 billion of funding available, over 25 years, to make the UK an early leader in carbon capture, utilization, and storage (CCUS) and hydrogen.
The government announced major funding for two carbon capture sites, which are set to drive growth into the industrial heartlands of the North West and North East of England – directly creating 4,000 jobs and supporting 50,000 jobs in the long term.
By Tsvetana Paraskova for Oilprice.com
