The UK government has unveiled a new initiative aimed at attracting significant investment in long-duration electricity storage (LDES) technologies, which are essential for strengthening energy independence and supporting the country’s net zero goals. This new support scheme is expected to unlock billions of pounds in funding for critical energy storage projects, helping the UK transition to clean energy and create thousands of jobs.

The scheme will tackle long-standing barriers that have prevented the construction of new LDES facilities for nearly 40 years. These technologies, such as pumped storage hydro, work like "giant batteries" by storing excess renewable energy and releasing it when demand is high, ensuring a reliable supply of clean energy.

Energy Minister Michael Shanks highlighted the importance of the scheme, stating, “We are wasting no time in unlocking Britain’s vast renewable potential by expanding wind and solar power. But we also need to increase our ability to store this energy for when the sun isn’t shining, or the wind isn’t blowing.”

The new scheme will focus on boosting investor confidence by providing financial incentives, including a proposed “cap and floor” model that would guarantee a minimum income for developers. Ofgem will oversee the scheme, ensuring that it supports both established technologies and new innovations. According to Shanks, "With these projects storing the surplus clean, homegrown energy produced from renewable sources, we can boost our energy security by relying less on fossil fuels."

Beatrice Filkin, Director of Major Projects at Ofgem, welcomed the move, saying, “Unlocking investment in this important technology is another significant step towards decarbonisation of the power system.”

Currently, Great Britain has 2.8GW of LDES across four existing pumped storage hydro schemes in Scotland and Wales, which already play a significant role in powering the country.

Other technologies include liquid air energy storage, compressed air energy storage and flow batteries, which are currently in development and would benefit from investor support.

The initiative comes as part of the government’s broader mission to secure energy independence and protect consumers from volatile global gas prices. Analysis suggests that deploying 20GW of LDES could save the UK’s electricity system £24 billion by 2050, reducing household bills by increasing the availability of cheaper renewable energy during peak times.

The scheme's launch coincides with the upcoming International Investment Summit, a platform designed to showcase the UK’s commitment to becoming a clean energy superpower.