Electricity storage

Electricity storage in the UK

Government support, growing electricity demand and ambitious deployment targets are creating opportunities for investment in UK electricity storage. The UK government has outlined its plans for the deployment of battery storage in the Clean Power 2030 Action Plan and the Clean Flexibility Roadmap. This includes setting an ambition of 23 to 27 GW by 2030 (compared with 7.5 GW deployed in June 2026).

Short duration electricity storage

Grid-scale battery storage consists mostly of large lithium-ion batteries connected directly to the electricity transmission and distribution networks. As we shift from a fossil fuel-based energy system to a renewable-based system, grid-scale batteries enable us to store energy for times when the sun shines less, the wind does not blow or for prolonged periods of cold weather. They are the first port of call for keeping our electricity system at the right frequency, while ensuring there is enough power in the right place at the right time, covering shortages from a few milliseconds to a few hours.

Great Britain’s grid-scale battery deployment relies on private investment, with support from the Capacity Market, our main mechanism for ensuring security of supply. The UK government remains confident that there is sufficient financing available to deploy grid-scale batteries at the scale required. We monitor battery deployment and engage with external stakeholders to keep our position under review.

Long duration electricity storage

When fully charged, LDES can provide full power for eight hours or longer before needing to recharge. This gives it a special role in managing high and low electricity demand, akin to the part played by unabated gas under the current system. For many decades, the dominant form of LDES in Great Britain and internationally has been pumped storage hydropower (PSH). PSH uses excess electricity to pump water up a mountain, and then releases that water to generate electricity when needed. The government expects a variety of sources of LDES to complement further PSH, including lithium-ion batteries operated at longer durations. More novel technologies at an advanced stage of development include liquid air and compressed air energy storage, as well as new forms of batteries such as flow batteries.

Cap and floor scheme to support LDES developers

The UK government's cap and floor scheme is technology neutral. It provides revenue support to developers should their returns fall below a set threshold known as the floor. It provides additional confidence to investors that debt costs will be recovered. In return, if profitability is above a defined cap, developers will have to return most or all the returns above the cap to energy consumers. This gives the market confidence to deliver the LDES we need without undue risk to consumers. Under this cap and floor scheme, a floor has never been engaged. A cap has been, which has allowed energy consumers to share in high revenues.