The renewables industry has given thumbs up to the UK government’s proposal to help build energy storage infrastructure, including the first significant long duration energy storage facilities in nearly 40 years.
Describing it as “a major win for its members and the wider industry”, the Association of Renewable Energy and Clean Technology (REA) welcomed DESNZ’s announcement that a ‘cap and floor’ scheme will be implemented to attract investment in long-duration energy storage.
Mark Sommerfeld, Deputy Director of Policy, REA (Association for Renewable Energy and Clean Technology), said: “Long-duration energy storage is essential for meeting future low-carbon energy demands in a cost-effective way while ensuring the security of supply.
“Today’s announcement finally confirms a scheme the REA long advocated for to unlock private investment in several ready-to-go projects, allowing construction to begin.
“The initiative will create high-quality jobs, enhance UK skills, and highlight the country’s world-leading expertise in this field. The inclusion of a revenue cap also ensures that the scheme will deliver value for money for us all.
“We are also encouraged by the government’s initial focus on pumped hydro storage and pleased to see a clear pathway for other innovative long-duration storage solutions that are also ready for deployment and can deliver additional benefits to our power system.
“The REA looks forward to continued collaboration with the government to advance this important sector.”
RheEnergise is developing a new and advanced form of long-duration hydro-energy storage system, and its chief executive Stephen Crosher (right) said: “RheEnergise welcomes the support scheme announced today by the UK government to attract investment in renewable energy storage.
“In particular, we are pleased to note a stream dedicated to new innovation technologies, like our High-Density Hydro solution.”
“We anticipate that under a cap and floor mechanism, our particular type of long-duration energy storage will be financed and built in the UK, providing a highly cost-effective alternative to traditional pumped hydro energy storage and other forms of storage – such as liquid air energy storage, compressed air energy storage and flow batteries.”
RheEnergise’s demonstrator project is currently under construction near Plymouth, Devon and the project has received financial support from DESNZ.
Renewables player Drax, which is progressing an option to expand its existing Cruachan pumped storage facility in Scotland through the construction of a new 600MW plant, also welcomed the news.
Drax’s Scottish assets director Ian Kinnaird (left) said: “Today’s announcement is a critical step forward to removing one of the key hurdles developers face in building a new generation of pumped storage hydro plants.
“I would like to thank the new government for moving at speed to do this within their first 100 days in office.
“Pumped storage stabilises the electricity system, helping to balance supply and demand through storing excess power.
“When Scotland’s wind turbines are generating more power than we need, Drax’s Cruachan steps in to store the renewable electricity so it doesn’t go to waste.
“We look forward to working constructively with the UK government and other stakeholders on the next steps of this process so we can deliver in partnership a clean power system by 2030 which strengthens our energy security and delivers for consumers.”
Head of economics and markets at Scottish Renewables Andrew MacNish Porter added:
“We are pleased that DESNZ has confirmed a cap and floor scheme will be introduced to support investment in long-duration electricity storage, such as pumped storage hydro.
“As we deploy more renewable energy, long duration storage is essential for ensuring clean power generated by renewables can be stored for when we need it most.
“The cap and floor scheme will bring forward investment in these vital projects so they can begin delivering benefits to consumers and providing new jobs and economic growth across Scotland.
“We are encouraged that Ofgem has been appointed as the delivery partner for the cap and floor as we recommended in our response to the UK Government’s consultation earlier this year.
“We now urge Ofgem to move swiftly in developing the details of the cap and floor scheme. With support from industry, Ofgem must act with urgency to ensure that cap and floor is implemented as soon as possible to allow shovel ready pumped storage hydro projects in Scotland to begin construction.”
Meanwhile, SSE is progressing its flagship pumped storage hydro Coire Glas project in the Scottish Highlands which could deliver up to 30GWh of storage capacity if built, doubling the total electricity storage capacity in Great Britain today. When commissioned, it would become the UK’s largest natural battery, providing vital back up for renewable power.
The developer hopes to make a final investment decision on the 1.3GW project pending successfully securing a cap and floor agreement in an appropriately designed scheme.
SSE Renewables’s director of hydro Robert Bryce said: “Today’s announcement on a cap and floor investment framework is a massive step forward in delivering more of the flexible homegrown energy the UK needs in our transition to net zero.
“SSE’s Coire Glas has the potential to be at the forefront of delivering much needed large-scale long duration electricity storage – providing vital back up to an increasingly renewables-led system and bolstering energy security.
“The flagship project in the Scottish Highlands can shift the dial on pumped hydro storage – harnessing the power of wind and water to become Britain’s biggest natural battery, storing excess renewable energy at times of low demand and supporting a future clean electricity system with instant power.
“We now need to harness momentum from this decision and accelerate at pace with a clear timetable to implement the new framework so clean energy investors like SSE can take positive decisions to unlock investment in these nation building projects.
“SSE will continue to work closely with government and Ofgem as the regulator and delivery body to support a speedy implementation so we can unlock investment in Coire Glas and other large scale storage projects to secure the benefits to UK consumers and society that they bring.”