Auma-Solutions for a world in motion
Auma-Solutions for a world in motion

UK to unlock investment for new storage

On 10 October, the UK Government announced a new scheme to attract investment in renewable energy storage, including pumped storage. A ‘cap and floor’ mechanism should help improve investor confidence, to unlock billions of pounds to fund long duration energy storage.

It is nearly 40 years since the UK built major pumped-storage schemes, and if successful, the new framework will enable a series of new storage projects in Scotland, and also Wales, to be built soon.
The long-awaited announcement followed a consultation held earlier this year. A cap and floor model would provide a guaranteed minimum income for developers, in return for a limit on revenues. The energy regulator Ofgem will act as the delivery body; and the scheme’s first round is expected to open to applicants in 2025.

Utilities that are planning major new pumped-storage projects, such as SSE and Drax, have welcomed the announcement. More than 25 projects are being studied, with several at an advanced stage of planning and with consents in place. As well as major new projects, such as Coire Glas (1300 MW and up to 30 GWh storage capacity), there are plans to convert existing large hydro plants into pumped storage schemes.