Government confirms policy support for electricity storage by 2024
Published August 15, 2022
The UK government has confirmed that by 2024 it will introduce policies to support investment in large-scale, long-duration electricity storage (LLES).
In response to a consultation on the barriers to deployment of LLES, the Department of Business, Energy and Industrial Strategy said BEIS said it would ensure the deployment of sufficient LLES to balance the overall system by developing policy to enable investment by 2024.
The consultation looked at many types of energy storage from batteries to pumped hydro, and from next-gen batteries to liquid air. LLES could provide an important role in decarbonising the UK’s energy system, for example by storing power and discharging it when wind is low.
Despite this, the consultation found that LLES “faces significant barriers to deployment under the current market framework due to their high upfront costs and a lack of forecastable revenue streams. “
The consultation sought to understand what those challenges might be, how they might be addressed and what interventions might be needed to ensure their deployment.
The response paper concluded that “LLES has an important role to play in achieving net zero, helping to integrate renewables, maximising their use, contributing to security of supply and helping manage constraints in certain areas.”
The consultation received 66 responses from developers, investors, trade associations, asset owners and academics. The majority agreed that LLES technologies face barriers to deployment. While most said that there is a need for government intervention to support LLES, a few respondents did not see the need for LLES-specific support.