Will desnz support long-duration energy storage projects?

The Department for Energy Security and Net Zero (DESNZ) has reconfirmed its intention to  introduce financial support for long-duration energy storage (LDES) projects by way of a cap and floor mechanism, following consultation at the start of 2024.

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.

Could 20 GW of LDEs save the energy system £24 billion?

Analysis has found that deploying 20 GW of LDES could save the electricity system £24 billion between 2025 and 2050, reducing household energy bills as additional cheaper renewable energy would be available to meet demand at peak times, which would cut reliance on expensive natural gas.

Will the UK be a step closer to energy independence?

The UK is a step closer to energy independence as the government launches a new scheme to help build energy storage infrastructure. This could see the first significant long duration energy storage (LDES) facilities in nearly 4 decades, helping to create back up renewable power and bolster the UK’s energy security.

How will the energy transition affect the UK?

In the coming years, the United Kingdom will need to ensure the continued buildout of low-emissions generation to displace unabated gas, replace nuclear closures and keep up with load growth driven by electrification. Moreover, the energy transition will necessitate an unprecedented buildout of grid infrastructure.

Why is the UK reviewing its energy transition strategy?

The review came at a timely moment, as the United Kingdom is in the process of reviewing its energy transition strategy to align with industrial and energy security goals. The United Kingdom was one of the first major economies to legally establish a net zero target in 2019.