UK Government Launches Energy Storage Investment Scheme

The UK government has launched an investment support scheme to enhance long-duration energy storage (LDES) infrastructure, marking the first significant investment in nearly 40 years. This initiative aims to address historical barriers such as high upfront costs, promoting technologies like pumped storage hydro, which function as giant batteries to store renewable energy. Energy Minister Michael Shanks emphasized the need for increased storage capabilities alongside expanding wind and solar power to ensure energy security and reduce reliance on fossil fuels. The scheme will provide developers with a 'cap and floor' revenue model, ensuring a guaranteed minimum income while limiting excess revenues. Additionally, the energy regulator Ofgem plans to implement this model with the first application round expected in 2025. Overall, this effort is part of the UK's broader strategy to achieve net zero emissions by 2030 and boost the economy through renewable energy projects.