Source · Select Committees · Business and Trade Committee
Recommendation 34
34
Deferred
Paragraph: 158
Long-duration energy storage deployment faces barriers and lacks sufficient policy prioritisation
Conclusion
The deployment of long-duration energy storage is essential to ensuring that a zero- carbon power system can operate 24/7, 365 days a year. These projects are capital intensive and face barriers to deployment due to a lack of long-term market signals. The Government’s 2024 ambition to develop appropriate policy to enable investment in these technologies is welcome, but we are concerned that this has not been made enough of a policy priority.
Government response summary AI-generated
The government's response highlights Ofgem's RIIO-ED2 price control mechanisms, including flexible funding and enabling strategic investment for network needs. However, it does not directly address the committee's concern about the prioritisation of specific long-duration energy storage policy.
Summary of the government's response below — read the verbatim text to verify.
Paragraph Reference:
158
Government Response
Deferred
HM Government · verbatim extract
Deferred
107. The Government recognises the need for long-duration energy storage (LDES) to support a fully decarbonised, secure and reliable electricity system, and the crucial role that LDES technologies will play in addressing system reliability and efficiency as the grid transitions to net zero. 108. The Government has committed to enable investment in LDES by 2024, and intends to consult in Autumn 2023 on policy proposals for LDES, including considering new business models. This consultation will allow the Government to gather stakeholder views on how best to provide targeted support to accelerate LDES deployment, to deliver on our commitment of enabling investment in LDES by 2024. The Government plans to then publish an LDES policy decision document in Spring 2024, ahead of potentially implementing a new business model from 2025 onwards. The Government continues to engage extensively with developers and investors to assess the barriers to LDES deployment, and the current market conditions. The Government considers that the proposed policy pathway and timeline outlined above is appropriate to ensure that the policy and business models are carefully considered to maximise the benefits of LDES, whilst ensuring value for money for consumers, and that this is progressing as a policy priority.
Read the full response on Parliament ↗