34
Deferred
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
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.
Paragraph Reference
158
Government Response
Deferred
Government Response
Deferred
HM Government
Deferred
107. Ofgem will work to ensure RIIO-ED2 is an agile price control, allowing flexibility in funding to suit network needs as they arise. It has made changes designed to increase the flexibility and speed at which contingent funding through its uncertainty mechanisms can be accessed, so that companies get additional funding above baseline quickly when required. 108. In addition, Ofgem is enabling strategic investment in this price control by allowing for investment ahead of need, taking into account demand forecasts beyond the 2028 date when the price control ends. RIIO-ED2 will also incentivise speeding up the connections process.
Source
Committee
Business and Trade Committee
Report
Eleventh Report - Decarbonisation of the power sector
28 Apr 2023
HC 283
Addressee Bodies
Department for Business and Trade
Timeline
Recommendation age
3.1 yrs
Report published
28 Apr 2023