Recommendation 39

There is agreement that a mix of technologies is likely to be needed for long-duration energy storage. Hydrogen is likely to be the best solution for storage across multiple weeks and months, but there is a range of competing technologies for storage across hours and days, which can also provide different services to the grid. Long-duration energy storage developers argue that the overall value they provide to the grid in terms of electricity system services is not yet properly incentivised, meaning the revenue stack for projects does not always add up. More information about how the Future System Operator will procure energy system services would encourage investment and healthy competition. Financial support mechanisms and market arrangements should be designed support a mix of storage technologies that provide the services the grid needs.