The British Hydropower Association (BHA) says today’s Ofgem decisions mark the biggest step forward for Pumped Storage Hydropower in decades, but warns that the next allocation round will be critical if Britain is to build the long-duration electricity storage needed for a secure, resilient energy system.
Sixteen projects, providing 7,645MW of long-duration electricity storage, have been selected under the first window of Ofgem’s Long Duration Electricity Storage (LDES) Cap and Floor scheme.
Three are Pumped Storage Hydropower (PSH) projects, representing almost 4GW of new capacity – more than half of all the storage capacity backed through today’s announcement.
Kate Gilmartin, Chief Executive of the British Hydropower Association, said:
“Today’s announcement is the biggest boost for Pumped Storage Hydropower in decades. It confirms that long-duration electricity storage is now recognised as essential national infrastructure for a secure, renewable electricity system.
“We congratulate the projects that have reached this milestone. Years of engineering, environmental assessment, community engagement and investment have gone into getting them to this point.”
The BHA said today’s decisions should mark the beginning, not the end, of Britain’s investment in long-duration electricity storage.
While three PSH projects have secured support through Window 1, the Association said the schemes that were not selected remain a vital part of the UK’s long-term storage pipeline.
Gilmartin added:
“The UK will need far more long-duration storage than can be delivered through this first allocation round alone. Window 2 will be critical if Britain is to build the pipeline of projects needed to support a secure, flexible electricity system for decades to come.
“The projects not selected today are no less important to Britain’s long-term energy resilience. They represent the next generation of nationally significant infrastructure, and it is vital that Window 2 provides a clear, investable pathway to bring them forward.”
Unlike other storage technologies, Pumped Storage Hydropower is major national infrastructure.
Schemes take years to build but can operate for well over a century, providing the flexibility needed to balance renewable generation, strengthen energy security and reduce the cost of running the electricity system.
Gilmartin points out:
“These are once-in-a-generation infrastructure projects. They will still be delivering value long after today’s energy technologies have been replaced.
“Alongside strengthening Britain’s energy resilience, they will create thousands of skilled jobs, support UK engineering and construction supply chains, and bring long-term investment into communities across the country.”
The BHA said the focus must now turn to finalising an investable Cap and Floor regime and ensuring Window 2 builds on the momentum created by today’s announcement.
“Today’s decisions are a major milestone, but they are only the first step. Getting Window 2 right will determine whether the UK delivers the long-duration storage needed to underpin a secure, affordable and resilient net zero electricity system,” says Gilmartin.