The UK government has unveiled nearly £7 million in funding to help “turbocharge” long duration storage.
It forms part of a £68 million competitive funding opportunity launched by the Department for Business, Energy and Industrial Strategy (BEIS) in June 2021 through the national Net Zero Innovation Portfolio (NZIP).
Announced this morning — as BEIS innovation programme manager Georgina Morris prepares to join speakers at the Energy Storage Summit 2022 in London today and tomorrow, hosted by our publisher, Solar Media — a total of 24 projects have now received £6.7 million funding through the Longer Duration Energy Storage Demonstration Programme.
“Driving forward energy storage technologies will be vital in our transition towards cheap, clean and secure renewable energy,” said energy and climate change minister Greg Hands.
“It will allow us to extract the full benefit from our home-grown renewable energy sources, drive down costs and end our reliance on volatile and expensive fossil fuels. Through this competition we are making sure the country’s most innovative scientists and thinkers have our backing to make this ambition a reality.”
The awards are split into two streams: Stream 1 is for demonstration projects of technologies considered close to commercialisation and aiming to accelerate that process so that they can be deployed on the UK energy system. Stream 2 seeks to accelerate the commercialisation of innovative projects through building “first-of-a-kind” prototypes of full systems.
The five awarded Stream 1 projects are a membrane free green hydrogen electrolyser, gravity-based energy storage, vanadium redox flow battery (VRFB), advanced compressed air energy storage (A-CAES) and a bundled solution of pressurised seawater and compressed air.
Thermal storage technologies were eligible, but none have received funding.
Stream 1 projects will receive funding ranging from £471,760 to £1 million per project.
There are however six thermal energy storage technologies among the 19 Stream 2 awardees. Stream 2 winners must deliver feasibility study reports for their proposed technologies and contribute to knowledge sharing and “sector capacity-building,” BEIS said.
Stream 2 funding ranging from £79,560 to £150,000 went to the six thermal storage projects, four power-to-x category projects and nine electrical energy storage projects.
Awardees
Stream 1
Stream 2
After launching the competition last year, BEIS opened up a three-month Call for Evidence on long-duration energy storage in July, assessing how best to enable long-duration technologies at scale.
A recent report from energy industry consultancy Aurora Energy Research found that up to 24GW of energy storage with a duration of four hours or greater could be needed to enable a net zero energy system in the UK by 2035.
This would enable the integration of variable renewable energy generation and also lower household energy bills by £1.13 billion a year in 2035. It could also reduce the country’s reliance on gas by 50TWh each year and lead to a 10MtCO2 reduction in emissions.
Aurora said however that high upfront costs, long lead times as well as a lack of revenue certainty and market signals are resulting in long-duration energy storage being underinvested into. Policy support and market reforms were recommended in the group’s report.
Another report by KPMG published a few weeks ago said that a cap and floor mechanism would be the best way to reduce investor risk while encouraging operators of long-duration facilities to respond to electricity system requirements.
In the US, the Department of Energy is hosting the Energy Storage Grand Challenge, a policy-driven effort to reduce costs and accelerate the adoption of energy storage, including a similar competitive funding opportunity for long-duration technologies and projects. Its aims include reducing the cost of long-duration energy storage 90% by 2030.
Meanwhile a cluster of European trade associations made a recent plea for the European Union (EU) to take a similarly proactive stance to support long-duration energy storage, particularly in the European Green Deal package.
This article originally appeared on Energy Storage News