Government lacks 'clear plan' for navigating future energy supply risks, Science and Technology Committee warns
Peers on the Science and Technology Committee have urged the government to "act fast" to scale up long-duration energy storage technologies, in order to protect the British economy from future energy shocks.
The report, titled Long-duration energy storage: Get on with it, argues that a "coordinated effort" is needed to unlock investment in the technology, which the Peers note is required both to achieve climate goals and reduce the impact future supply shocks will have on energy billpayers.
Specifically, the Lords called on the government to develop a "strategic reserve" of energy storage capacity, which would be operated under different arrangements to commercial projects, so as to ensure it is available during a crisis.
"Relying on the market to deliver energy security in a crisis will immediately pass on the costs of future energy shocks to the consumer in an uncontrolled way, as the UK has experienced recently," the report notes. "Failure to prepare a strategic reserve would jeopardise energy security and net zero."
The report comes just a day after the government launched a consultation on its Review of Electricity Market Arrangements (REMA), which included proposals to reform the Capacity Market to deliver new back up gas power plants and cleaner forms of capacity, including long duration energy storage projects.
However, Energy Security and Net Zero Secretary Claire Coutinho faced criticism from green groups for appearing to prioritise the delivery of new gas projects.
The Lords Select Committee today cautioned the government to not rely on gas as a strategic reserve, noting that "cheaper, renewable energy, stored in forms such as hydrogen, offers more independence and security".
"Relying on gas as a strategic reserve would leave us again dependent on expensive, volatile imports," the report notes.
Baroness Brown of Cambridge, chair of the Committee, said long-duration energy storage technologies were "essential" to allow the UK to maintain security of supply as the proportion of renewables generation on the grid grew.
"The combination of renewables with energy storage will enable the UK to build an economy insulated from dependence on volatile energy markets and imported fossil fuels," she said. "But storage isn't just about batteries. Long duration storage that can store energy for days, weeks and even years will be key, and offers the prospect of the UK being able to build an energy storage industry."
Brown said the government did not have a "clear plan" for navigating future energy crises. "In light of the huge economic damage the recent energy crisis has caused, it is distressing to see that the government lacks a clear plan for energy supply risks and indeed is still deliberating over investment in long-duration storage to prevent future crises," she said. "A strategic reserve of electricity storage is a critical investment to secure the UK's energy supply against future shocks, but the government is still equivocating over whether it is necessary to invest in one."
She added: "Since 2023, the government has had a Department for Energy Security and Net Zero (DESNZ). Long-duration energy storage is critical for ensuring the UK can have both, so it must be a key priority for the Department."
Elsewhere, the Select Committee's report calls on the government to commit to a minimum target for long-duration energy storage, and to set out the details of its long-duration storage business model. It also calls on Ministers to "urgently" make key decisions and coordinate the delivery of its energy system plan, and clarify its intended role for the use of hydrogen fuel in storage.
"Key decisions about transmission infrastructure for hydrogen and electricity must be made to allow developments to go ahead," the report notes. "The UK cannot wait for decisions in 2025 and 2026 to invest in storage if the commitment to a secure decarbonised electricity system by 2035 is to be realised."
DESNZ was considering a response at the time of going to press.
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