Britain is on the brink of gaining a series of massive ‘water batteries’ in the near future, as revealed by Wales Online. The country has been given the go-ahead by Ministers to facilitate the development and investment in pumped storage hydropower, a method of energy storage using reservoirs. These hydropower sites operate by purchasing electricity at lower rates, such as when wind turbines are generating power, to pump water uphill from rivers or lakes, where it is stored at the top. The stored water can then be released downhill to generate more power for the grid during peak demand or higher-priced electricity periods.
While this technology is not new and Britain already has four such sites in operation in Scotland and Wales – including the well-known Electric Mountain in Snowdonia – the last new site was constructed almost 40 years ago due to the high development costs. However, several new sites are now in progress, with plans for additional projects underway, like one at Loch Ness in the Scottish Highlands. Government officials estimate that roughly five times more long-duration energy storage is needed for the country to achieve its net-zero targets by 2050.
To attract more investment in these projects, a new approach known as the ‘cap-and-floor’ scheme is being introduced. This model guarantees a minimum income for companies involved in project development in exchange for placing a limit on the revenue they can earn from the sites. Energy Minister Michael Shanks expressed optimism about the potential of these projects to enhance energy security by reducing reliance on fossil fuels, controlling household energy costs, and advancing Britain’s objective to become a clean energy superpower.
Energy regulator Ofgem will oversee the implementation of this scheme, with the first round of project applications expected to open in 2025. Additionally, the model aims to support investment in alternative long-duration energy storage technologies such as liquid air energy storage, compressed air energy storage, and flow batteries. A similar mechanism has been successfully used to encourage investments in electricity interconnectors linking Britain’s grid with other nations. This initiative follows a consultation held under the previous Conservative government earlier this year, indicating the government’s commitment to decarbonising the power system and fostering sustainable energy solutions.