Long Duration Energy Storage investment support scheme will boost investor confidence and could unlock billions in funding for UK LDES projects.
Thursday 10 October 2024
Invinity Energy Systems warmly welcomes the UK Government’s confirmation of a cap and floor regime as the investment framework for new large-scale, long-duration electricity storage projects which was announced this morning. The UK Government press release can be read here and the outcome of the consultation here.
The Long Duration Electricity Storage investment support scheme will see a “cap and floor” mechanism guaranteeing a minimum income for investors deploying large scale, long duration energy storage (“LDES”) technologies, including vanadium flow batteries, onto the UK grid. The move aims to boost investor confidence and could unlock billions in funding for projects using vanadium flow batteries and other types of LDES.
Above: Invinity’s vanadium flow batteries at the Energy Superhub Oxford site
The Company views today’s announcement very positively, especially the Government’s assertion that this news should be seen as a “green light” for the next generation of LDES projects in the UK, with flow batteries specifically mentioned as a qualifying technology. Under current proposals, the scheme envisages a minimum project size of 300 MWh which represents support for a material increase in opportunity size for the Company in the UK market. The Company also notes the Government’s objective to support GB businesses, like Invinity, through the scheme and unlock investment in green jobs and opportunities as a result.
“We are delighted to see the announcement this morning from DESNZ. This is a very important step forward in paving the way for LDES technologies to make a large and meaningful impact on our national grid and confirms the Company’s optimistic view on future policy support for Invinity’s products in the UK market.
We look forward to continuing our regular engagement with DESNZ as well as Ofgem and other key stakeholders as the scheme moves through the remaining steps of the process. The support for LDES embodied in this scheme is most welcome and we look forward to our products playing an even greater role in supporting energy security, faster decarbonisation and lower costs for consumers in the UK.”
– Jonathan Marren, Chief Executive Officer, Invinity Energy Systems
This announcement sees the Government appointing Ofgem as the scheme’s regulator and delivery body. A technical decision document addressing any outstanding questions and outlining the final detailed structure of the scheme will be published “this winter” with the first round of the scheme expected to be open to applications next year.