What is the long duration energy storage Investment Support Scheme?

Long Duration Electricity Storage investment support scheme will boost investor confidence and unlock billions in funding for vital projects. The UK is a step closer to energy independence as the government launches a new scheme to help build energy storage infrastructure.

How will the new energy storage scheme work?

The new energy storage scheme will include a cap on the revenues of project owners, forcing them to share some or all profits above a set threshold, while a minimum floor price will guarantee certain revenues for operators.

What is a 'cap-and-floor' energy storage scheme?

The UK government has today launched a new scheme designed to leverage investment in long-term energy storage capacity, which will operate as a ‘cap-and-floor’ mechanism.

How much government funding has been given to energy storage projects?

This was published under the 2022 to 2024 Sunak Conservative government Over £32 million government funding has been awarded to UK projects developing cutting-edge innovative energy storage technologies that can help increase the resilience of the UK’s electricity grid while also maximising value for money.

Could a new energy investment spur the first long-duration power storage facility?

The Department for Energy Security and Net Zero (DESNZ) said the new investment scheme could spur the first major long-duration power storage facilities the country has seen in almost four decades.

How will a £750 million battery energy storage scheme work?

The £750 million battery energy storage scheme (BESS) will strengthen the ‘security and resilience of the energy system’ in the North West of England, said the firm. It will also support the growth of renewable power generation in the region, it added. Construction is expected to begin in Q1 2024, subject to a final investment decision.