The UK on Thursday announced a new support scheme for renewable energy storage projects that guarantees a minimum income to developers of long-term energy storage (LDES) facilities.
The UK government expects to open up the first round of the scheme to applicants next year, based on a so-called “cap-and-floor” model that guarantees developers a minimum income in exchange for income limits. The government said energy regulator Ofgem had agreed to act as the regulatory and supply agency.
The UK currently has 2.8 gigawatts (GW) of LDES across four existing pumped hydro schemes in Scotland and Wales.
Other LDES technologies that could be included in the new scheme include liquid air energy storage, compressed air energy storage, and flow batteries. These are currently in development and will benefit from investor support.
The government cited analysis showing that deploying 20GW of LDES could save the electricity system $31.4bn (£24bn) between 2025 and 2050. Energy storage also has the potential to reduce household utility bills, as additional, cheaper renewable energy is available to meet demand. This reduces dependence on expensive natural gas.
Energy Minister Michael Shanks said: “We are reversing a 40-year tradition of no new long-term storage facilities being built and taking steps to unlock private investment in both established and new technologies.” said.
In a further boost to emerging technology, the UK government last week announced around £22bn of funding to build carbon capture facilities in the north. The total amount is equivalent to approximately $29 billion.
The announcement confirmed that up to £21.7bn of funding is available over 25 years to make the UK an early leader in carbon capture, utilization and storage (CCUS) and hydrogen.
The Government has announced major funding for two carbon capture sites. These sites will drive growth in the industrial heartlands of the North West and North East of England, creating 4,000 jobs directly and supporting 50,000 jobs in the long term.
Written by Tsvetana Paraskova, Oilprice.com
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