Recommendation 13

The economics of long-duration energy storage projects are challenging and they will require additional financial support mechanisms. Our witnesses generally favoured a cap and floor mechanism, and we are pleased to see the Government is actively consulting on introducing one. The Government has also stated that it is “minded to” provide a revenue floor for hydrogen transportation and storage but how this will interact with the proposed long-duration energy storage cap and floor subsidy is unclear. Hydrogen and electricity policies should be considered and designed together.