The Transition Finance Council has published a roadmap calling for tens of billions of pounds of investment in long-duration energy storage in the UK.
The council said large-scale deployment of long-duration energy storage, or LDES, is critical to meeting net zero targets and supporting the rollout of artificial intelligence.
LDES includes technologies such as large batteries and pumped-hydro storage that can discharge energy for eight hours or longer, according to the roadmap.
The council said £10bn-£15bn of investment will be required by 2030, with a further £30bn-£60bn needed by 2050.
It said scaling LDES could reduce system costs, lower consumer bills, ease grid congestion and support job creation in previously left-behind regions.
The roadmap calls for coordinated action from government, regulators and industry to unlock private investment.
It recommends that government provides revenue parity or a minimum revenue floor for LDES projects to improve bankability.
The council also said the National Wealth Fund should continue investing in LDES and increase the use of concessionary and catalytic capital.
Lord Alok Sharma (pictured), chair of the Transition Finance Council, said long-duration energy storage is vital to the UK’s energy transition.
“Developing long duration energy storage at scale is going to be vital in helping the UK transition to a decarbonised and stable energy supply system, enhance energy security, insulate our economy against energy supply shocks and ultimately help bring down electricity bills,” said Sharma.
“This Long Duration Energy Storage Roadmap aims to set out a practical guide to mobilising the finance required to enable the scaling-up of this sector,” he added.
Chris Skidmore, chair of the council’s pathways, policies and governance working group, said LDES can unlock the full potential of clean energy.
“Long duration energy storage is the key that can unlock the true potential of the clean energy revolution in the UK,” said Skidmore.
Irem Yerdelen, the City Corporation’s lead member for sustainable finance, said long-duration storage is now a necessity for secure and affordable power systems.
“This roadmap sets out how smart financing structures can unlock investor confidence and drive deployment at scale for these new technologies,” Yerdelen said.