British Hydropower Association points out investment in long duration energy storage (LDES) technologies will “unleash billions in private investment and create thousands of jobs.”
The British Hydropower Association (BHA) has today welcomed the UK Government’s decision to support vital investment in long duration energy storage (LDES) technologies, including pumped storage hydropower.
The announcement by the Department for Energy Security and Net Zero follows a consultation held earlier this year which proposed a ‘cap and floor’ scheme to encourage LDES investment.
The BHA says the government’s support for the introduction of a ‘cap and floor’ mechanism represents a significant step forward in unlocking the potential of LDES and strengthening the UK’s position as a clean energy leader.
Kate Gilmartin, CEO of the British Hydropower Association, said: “This announcement marks a pivotal moment for the UK’s clean energy future. The cap and floor mechanism will provide the certainty needed to unleash billions of pounds in private investment, creating thousands of jobs and accelerating our path to net zero.
“The BHA and our members are eager to work closely with Ofgem to ensure this mechanism is implemented swiftly. Time is of the essence in the global race towards clean energy leadership, and the UK has a significant early mover advantage on which we must capitalise.
“Our sector is poised to move forward rapidly, leveraging our global supply chain, world-class skills, and ability to attract international capital. With the right framework in place, we can secure the UK’s position at the forefront of this crucial technology.”
The BHA has been campaigning for a ‘cap and floor’ mechanism to bring forward the pipeline of pumped storage Hydropower projects and has urged immediate action following today’s announcement, including:
1. Accelerated Implementation: We urge Ofgem and the government to bring forward the mechanism at an accelerated pace. Swift action is crucial to maintain the UK’s competitive edge.
2. Global Opportunity: The LDES sector represents a global opportunity. The UK must attract investment, skills, and supply chain from around the world.
3. Job Creation: Rapid development of LDES projects will create thousands of skilled jobs across the UK, supporting the government’s agenda to bring forward high quality jobs.
4. Energy Security: LDES technologies, particularly pumped storage hydropower, are vital for enhancing the UK’s energy security, reducing reliance on fossil fuels in volatile international markets and avoiding costly curtailment.
The BHA looks forward to engaging closely with Ofgem and the government in the coming weeks to ensure the cap and floor mechanism is designed and implemented effectively, enabling the sector to move forward at pace.
