Source · Select Committees · Environmental Audit Committee
Recommendation 6
6
Accepted
Government lacks clear strategy for long-term energy storage, hindering private investment.
Conclusion
The form that this energy storage should take has not been made clear by the Government. It is by no means clear to us that Ministers have grasped the scale of the storage facilities likely to be required, nor the Government action likely to be necessary either in providing long-term storage or establishing the conditions for it to be developed. The sector therefore lacks strategic direction, inhibiting private investment and delaying the future rollout of grid-scale energy storage. (Paragraph 45) 44 Enabling sustainable electrification of the economy
Government response summary AI-generated
The government and Ofgem are working to accelerate grid connections by granting urgency status to code modification proposals and intending to legislate for connections reform. NESO will submit proposals by end of 2024, with a decision expected in early 2025.
Summary of the government's response below — read the verbatim text to verify.
Government Response
Accepted
HM Government · verbatim extract
Accepted
Government agrees with the importance of long-duration energy storage as a key enabler to a secure, cost-effective and low carbon energy system. Long duration energy storage, for example electricity or hydrogen storage, can help to decarbonise the system by storing excess renewable generation over longer periods of time. This will allow us to replace fossil-fuelled generation with renewable power without losing flexibility from the grid. Long duration electricity storage (LDES) will save consumers money, as it minimises the amount of additional generation and network capacity needed. System modelling estimates savings for the energy system, and ultimately the energy consumer, of £24 billion by 2050 in one scenario1. On 10 October 2024 the Government published its decision to introduce a cap and floor scheme for LDES, with Ofgem as regulator and delivery body. Future procurement ambitions for this scheme will be provided ahead of the first application round, which is expected in 2025. NESO’s Clean Power 2030 analysis contains scenarios for future storage deployment (both LDES and batteries). We will continue to work with NESO to develop projections of future system need, e.g. in preparation for next steps on delivery of the LDES cap and floor scheme. Low-carbon hydrogen can also act as a flexible generating technology and provide long duration energy storage, making use of curtailed electricity. We are committed to designing, by 2025, a new business model for hydrogen storage infrastructure and how best to enable private sector investment and remove market barriers. The Energy Act 2023 provides the legislative framework that will underpin the delivery of the hydrogen transport and storage business models.
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