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REA publishes ‘Longer-Duration Energy Storage: The
missing piece to a Net Zero, reliable and low-cost energy
future’
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Report estimates that UK will need at least 30GW of
longer-duration energy storage by 2050, a target which is
currently undeliverable in the present framework
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REA call on BEIS to issue a Call for Evidence with a
view to implementing a new market mechanism to unlock
investment
The Association for Renewable Energy and Clean Technology (REA)
has published a report which has found that future
longer-duration energy storage needs will be left unmet without
significant change. The findings have led to calls for a new
market mechanism to unlock investment in a range of
longer-duration energy storage technologies.
The ‘Longer-Duration Energy Storage: The missing piece to a Net
Zero, reliable and low-cost energy future’ estimates that the UK
will need at least 30GW of longer-duration energy storage by
2050, a target which is currently undeliverable based on the
present market and regulatory framework.
The REA’s analysis found that an Income Floor would be the best
market mechanism for supporting this category of storage, but
that a Regulated Asset Base model could be a suitable
alternative.
Highlighted barriers included the relatively short length of
contracts for capital intensive projects and a ‘salami sliced’
procurement of services. While welcoming the Government’s
announcement of a £68m demonstration competition for first of a
kind energy storage projects, the REA say that this will not
resolve the barriers to deployment that affect all
longer-duration energy storage technologies.
Frank Gordon, Director of Policy at the Association for
Renewable Energy and Clean Technology (REA), said:
“Longer-duration energy storage will be vital to supporting
our grid through the energy transition in the drive to net zero.
However, as our report shows, we are a long way from meeting our
targets on current trends.
“While I welcome the government’s announcement of a £68m
demonstration competition for first of a kind energy storage
projects, this will not resolve the barriers to deployment that
affect all longer-duration energy storage technologies.
“It’s clear that, in order to drive investment in this area,
a new market mechanism is needed. We see an income floor as the
most appropriate option, however with a Regulated Asset Base
model being the next best alternative. We will work with BEIS to
push for change in this area and hope they respond by issuing a
Call for Evidence alongside the Smart Systems & Flexibility
Plan update.”
Will Gardiner, Drax Group CEO, said:
“Britain’s pumped hydro storage stations have never been more
important to the country’s decarbonisation. They play a vital
role in keeping the grid stable and enabling more wind power to
come online.
“Flexible and responsive power generation and storage
capacity from pumped hydro projects like Cruachan are essential
for delivering the UK Government’s net zero by 2050 target. With
the right support framework from Government a new generation of
pumped hydro storage power stations can be built, supporting new
jobs and helping the country decarbonise faster.”
—ENDS—
Link to the report: https://www.r-e-a.net/resources/rea-longer-duration-energy-storage-report/
Notes to editors:
Technologies looked at as part of the report include (but are not
limited to):
- Compressed Air Energy
Storage (CAES);
- Liquid Air Energy Storage
(LAES);
- Pumped Hydro energy storage;
- Gravity batteries;
- Flow batteries;
The REA’s Energy Storage Forum covers a wide range of
technologies including batteries at all scales from those used in
the home to those at grid scale, heat batteries, marine energy,
green gas, and longer-duration energy storage technologies.
