Source · Select Committees · Environmental Audit Committee
Recommendation 7
7
Deferred
Paragraph: 46
Address urgent barriers to long-term energy storage through government investment and policy reforms.
Recommendation
The Government must address as a matter of urgency the barriers to long term energy storage for the UK to ensure it can provide its citizens with clean and reliable energy during periods of limited renewable generation. This can be delivered through direct Government intervention and investment in infrastructure, as well as through regulatory and policy reforms, such as cap and floor mechanisms or a reformed capacity mechanism, that signal to the market the value of long-term energy storage.
Government response summary AI-generated
The government's response focuses on Ofgem's work with the ENA to make connections queue data publicly available monthly, which does not directly address the broader policy and investment barriers to long-term energy storage or the suggested regulatory reforms.
Summary of the government's response below — read the verbatim text to verify.
Paragraph Reference:
46
Government Response
Deferred
HM Government · verbatim extract
Deferred
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.
Read the full response on Parliament ↗