Our website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

Britain sets out funding model for renewable energy storage projects

by Uma Rajagopal
0 comments
2024 10 09T231107Z 1 LYNXMPEK980V3 RTROPTP 4 BRITAIN CLIMATE

 

By Susanna Twidale

LONDON (Reuters) – Britain will offer developers of renewable energy storage projects, such as pumped hydro, a guaranteed minimum income to spur investment in technologies that help the country meet its climate targets.

Britain is aiming to decarbonise its power sector by 2030. Meeting this target will require a large increase in renewable energy, such as wind and solar, as well as projects that store energy when there is insufficient wind or sun.

“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,” Energy Minister, Michael Shanks said in a statement.

Under the scheme, developers of long duration energy storage projects can apply for “cap and floor” contracts that provide a guaranteed minimum income in return for a limit on revenues.

A similar scheme is already used to help pay for interconnector power links with other countries.

Pumped hydro plants work by pumping water to a higher reservoir before releasing it to enable water to flow downhill through turbines to produce electricity when it is needed.

Developers of the technology say it can help to even out the renewable electricity on the power grid by pumping water uphill when demand is low so it can be released when demand is high.

Other long duration energy storage technologies include liquid air energy storage, compressed air energy storage and flow batteries.

Britain’s energy regulator Ofgem will design the scheme with the first round to be open for applicants next year, the government said.

 

(Reporting By Susanna Twidale; Editing by Christina Fincher)