This month, the UK government released a series of initiatives and industry reports to accelerate the transition to renewable energy, focusing on energy storage, carbon capture, and floating wind technologies.
Investment Program In Renewable Energy Storage
The UK government has launched a new investment support program to support long-term electricity storage (LDES) projects aimed at improving energy security and reducing costs. LDES technologies, such as hydraulic storage pumps, function like large batteries, storing renewable energy for later use. The government said: “By ensuring a sustainable supply of clean, domestically produced energy, these projects aim to strengthen the UK’s energy independence and protect consumers from unpredictable global gas markets.”
The investment program, announced on October 10, aims to remove obstacles to investment. It is expected to attract billions in funding, create thousands of jobs, and support the goal of reaching zero emissions by 2050. As part of this plan, the UK government will finalize the design and deployment of a cap and minimum investment framework to encourage LDES deployment.
The system guarantees that developers’ incomes are maintained if their gross annual profit — the difference between the revenue from selling electricity back to the grid and the cost of charging — falls below a set minimum known as a “minimum.” The announcement follows a consultation on the LDES investment which ended in March 2024. Ofgem will manage the project and the first round of applications will start next year.
Energy Secretary Michael Shanks said: “We are rapidly unlocking Britain’s huge renewable potential by expanding wind and solar power. At the same time, we must increase our ability to store energy for times when the sun is not shining or the wind is not blowing. “We’re tackling a legacy that hasn’t seen new long-term storage for 40 years, and paving the way for private investment in both established and new technologies.”
SSE Renewables is currently promoting Coire Glas, a hydroelectric project in the Scottish Highlands near Loch Lochy in the Great Glen. This project could provide 30 GWh of LDES, enough to supply 3 million homes with renewable energy 24 hours a day. Renewable energy company Drax Group is also exploring the possibility of expanding the existing Cruachan hydro storage facility in Scotland by building a new 600MW plant. The UK currently has 2.8 GW of LDES across four hydroelectric power stations in Scotland and Wales. SSE and Drax welcomed the government’s initiative.
SSE Renewables’ hydro director Robert Bryce called the cap and cap framework “a significant step forward in delivering the flexible domestic energy the UK needs as we move towards zero energy”. He added: “SSE’s Coire Glas has the potential to lead the way in delivering the necessary large-scale, long-term electricity storage, providing a vital backup to our increasingly renewable energy system and enhancing energy security.”
Drax’s director of Scottish assets, Ian Kinnaird, said the announcement was “a crucial step in addressing one of the key challenges developers face in building the next generation of hydro storage”. He added: “We look forward to working with the government and other stakeholders to advance this process, aiming for a clean energy system by 2030 that will strengthen energy security and benefit consumers.”
The British Hydropower Association noted that investing in LDES technologies will “unlock billions in private investment and create thousands of jobs.” However, it urged the government and Ofgem to provide clearer timelines for implementing the proposed scheme.
Carbon Capture Projects
The government has confirmed funding for the first large-scale carbon capture and storage (CCS) sites in Teesside and Merseyside. These projects aim to capture CO2 emissions before they enter the atmosphere and store them beneath the seabed. The sites are expected to create 4,000 direct jobs, support 50,000 jobs, and attract £8 billion in private investment. The government has indicated that these CCS sites will remove over 8.5 million tons of CO2 emissions annually.
In March, Costain and Balfour Beatty were among nine contractors chosen for £4 billion worth of construction contracts on CCUS projects in the northeast, known as the East Coast Cluster, including the Net Zero Teesside Power station in Redcar. The announcement on 4 October confirmed that up to £21.7 billion in funding is available over 25 years for new carbon capture and CCUS-enabled hydrogen projects.
The government remarked, “The UK’s commitment, first made in 2009, has seen progress with today’s funding confirmation marking a major win for British industry.” The announcement follows last month’s quashing in the High Court of planning permission to build a new metallurgical coal mine in west Cumbria. The new UK government under Kier Starmer decided not to defend the planning permission decision.
Costain Group CEO Alex Vaughan described the government’s funding announcement for CCUS projects as “a truly pivotal event” and “a decisive and ambitious step on the UK’s path to net zero.” He added: “Maintaining momentum is crucial, with a clearer direction now for scaling up blue and green hydrogen infrastructure, positioning the UK as a leader globally.”
Intera UK managing director Patrick Cox praised the government’s announcement for CCUS projects, saying it was “widely supported by all involved, including the ground engineering sector.” He noted that many geotechnical engineers are already involved in these projects through ground investigations, and the design of onshore and nearshore pipelines, processing facilities, and infrastructure. “These are complex sites with various challenges due to intricate ground conditions and proximity to businesses.” Cox added, “Carbon capture relies on the natural asset of geology, and geotechnical experts will significantly contribute to supporting geological storage infrastructure foundations, characterization, modeling, and interpretation.”
The UK requires geological storage to complement efforts to reduce carbon emissions and has a natural edge due to the favorable geology and proximity of the North Sea Basin, according to Cox. Policies, commitment, and funding need to align with this advantage. “Ground engineering is crucial for geological storage and CCUS to succeed,” he emphasized.
Floating Offshore Wind Prospects
A government-industry report has highlighted the UK’s potential to become a global leader in the production of floating offshore wind energy. A report by the Floating Offshore Wind Taskforce, published on October 9, estimated the sector could add £47 billion to the economy and create 97,000 jobs by 2050. Many opportunities will emerge in ports in Scotland and Wales.
The report predicts that by 2050, floating turbines could provide one-third of the UK’s offshore wind capacity, with a total operating capacity of 40 GW. It concluded that the cost of building floating wind farms could fall by 30% by 2030 to less than £100 per megawatt hour. The UK currently boasts two operational floating wind farms and one of the largest floating pipelines in the world.
However, the report points to challenges facing the industry, including a lack of suitable ports and competition from European suppliers. It calls for urgent action to scale up projects and reduce costs to fully exploit the potential of floating wind energy.
Renewable Energy UK chief executive Dan McGrail, co-chair of the Floating Offshore Wind Task Force, said: “Floating wind is poised to become a major global industry in the 21st century. The UK has an unprecedented chance to lead the way by scaling up this innovative technology. “But swift action is needed, with industry and government working together to transform ports across the country into manufacturing hubs for high-value turbine components, particularly in areas such as north-east Scotland and south Wales, which need new industrial opportunities as the transition to clean energy “.
Renewable UK, formerly known as the British Wind Energy Association, represents the UK wind, wave, and tidal energy industry. Energy Secretary Ed Miliband said: “Floating offshore wind is central to the Government’s mission to establish Britain as a clean energy source. “The recently launched partnership between Great British Energy and the Crown Estate will help us seize a unique opportunity to win the global race for floating offshore wind. This report demonstrates what government and industry can achieve together.”