Statement
Today I am announcing the next steps the Government is taking to create a policy framework to encourage investment in long-duration electricity storage. This delivers on commitments we have made in the British Energy Security Strategy and Powering Up Britain: Energy Security Plan.
The Government has today published a consultation which proposes a cap and floor investment framework to address the barriers to the deployment of long-duration electricity storage. The consultation seeks views on our approach, including the eligibility criteria for assessing applications, the design of the cap and floor mechanism and our proposed options for delivering the scheme.
Long-duration electricity storage technologies will be central to a secure, cost-effective and low carbon energy system. External analysis indicates that deploying long-duration electricity storage could save billions of pounds for consumers, making sure that we reach net zero in a proportionate and pragmatic way.
Pumped hydro storage is the most mature example of long duration energy storage. Novel technologies including hydrogen, liquid air and compressed air storage, are also emerging. The Government’s £69m Longer Duration Energy Storage competition, part of the £1bn Net Zero Innovation Portfolio, is supporting the commercialisation of these technologies.
In the Powering up Britain: Energy Security Plan, we committed to put in place an appropriate framework to enable investment in long-duration electricity storage which will contribute to balancing the electricity system. The consultation follows a Call for Evidence in 2021 to understand the barriers to the deployment of long-duration electricity storage.
A copy of the consultation will be deposited in the Libraries of the House.
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This statement has also been made in the House of Lords