The UK government has announced a new investment support scheme to accelerate the development of long duration electricity storage (LDES) technologies, including pumped storage hydropower. The initiative is aimed at increasing the country’s renewable energy storage capacity and enhancing energy security. By unlocking billions in private investment, the scheme will help develop infrastructure that stores surplus renewable energy for use during periods of high demand.
Energy Minister Michael Shanks highlighted the importance of expanding LDES capacity as part of the UK’s transition to renewable power. “We are wasting no time in unlocking Britain’s vast renewable potential by expanding wind and solar power,” said Shanks. “But we also need to increase our ability to store this energy for when the sun isn’t shining, or the wind isn’t blowing.”
The investment support scheme is expected to remove barriers that have prevented large-scale energy storage projects from being built for nearly 40 years. By offering a “cap and floor” mechanism, the scheme will provide financial support to developers, helping to create thousands of jobs and reducing the UK’s reliance on global fossil fuel markets. “With these projects storing the surplus clean, homegrown energy produced from renewable sources, we can boost our energy security by relying less on fossil fuels, protect household bills, and help deliver our key mission to make Britain a clean energy superpower,” Shanks added.
The British Hydropower Association (BHA), which has been campaigning for a cap and floor mechanism to support pumped storage projects, welcomed the announcement. Kate Gilmartin, CEO of the BHA, called for swift implementation of the scheme: “We urge Ofgem and the government to bring forward the mechanism at an accelerated pace. Swift action is crucial to maintain the UK’s competitive edge.”
The cap and floor model guarantees a minimum income for developers, providing financial stability while limiting excessive profits. Ofgem will act as the regulator and oversee the scheme, with the first round of applications expected next year. This follows consultations held earlier this year to encourage investment in LDES projects.
Currently, the UK has 2.8GW of LDES capacity from existing pumped storage hydro schemes in Scotland and Wales. Expanding this capacity is expected to create thousands of skilled jobs, boost energy security, and support the country’s efforts to achieve net zero by 2050. Gilmartin noted that LDES technologies, especially pumped storage hydropower, are essential for reducing the UK’s reliance on fossil fuels and ensuring energy security.
The scheme is part of a broader government effort to enhance energy security and accelerate the transition to clean energy. It follows recent investments in carbon capture projects and the lifting of the ban on onshore wind developments.
