TheLonger Departmentsduration forstorage Energy(across Securitydays, weeks, and Netmonths) Zerocould (DESNZ),help andreduce previouslythe Business,cost Energyof andmeeting Industrialnet Strategyzero (BEIS), haveby awardedstoring £69.5excess millionlow incarbon fundinggeneration for innovative longer durationperiods energyof storagetime, projectshelping throughto the Longermanage Durationvariation Energyin Storagegeneration Demonstrationsuch (LODES)as Programmeextended Streamperiods 1of (Phaselow 1wind.
This could reduce the amount of fossil fuel and Phaselow 2)carbon generation that would otherwise be needed and Streamoptimise the output from renewables (rather than paying to turn off generators when there is excess supply).
Over £69 million of capital funding was made available across 2 (Phasecompetition 1streams. Technologies in scope included electric, thermal and Phasepower-to-x.
Technologies 2).out of scope were solutions with widely deployed UK commercial demonstrations such as lithium ion, pumped hydro or large water tanks.
Stream 11: actual demonstration
Stream 1 aimsaimed to accelerate commercialisation of innovative longer duration energy storage projects through to actual demonstrations.demonstrations in operational environments. During Phase 1, projects willwere be expected to mobilise their proposed technologies (at TRL 6/7) to prepare for potential deployment on the UK energy system.
Around £37 million innovation funding was to be awarded in the form of capital grants, with a requirement to secure matched private investment. Delivery was to be phased, with down-selection after Phase 1 (mobilisation).
| Phase |
Indicative timeline |
Indicative available funding (per project) |
| Phase 1: Mobilisation: including FEED, securing planning permission, final investment decision |
November 2021 to October / November 2022 |
Up to £1 million |
| Phase 2: Build and commission |
December 2022 to March 2025 |
circa £11 million |
5 projects were funded through Stream 1 Phase 1, covering 2 out of the 3 potential technology areas that were in scope of the competition:
- power-to-X energy storage
- and electrical energy
storage
storage.
No projects were awarded funding through the thermal energy storage technology category.
One project was funded through Stream 1 Phase 2.
See the application details for Stream 1
Stream 22: prototype demonstration
Stream 2 aimsaimed to accelerate commercialisation of innovative longer duration energy storage projects through to first-of-a-kind (FOAK) full-system prototypes.prototypes in relevant or operational environments. Phase 1 projects willwere be expected to deliver a feasibility study report for their proposed technology and contribute to knowledge dissemination and sector capacity-building.
Around £30 million innovation support was to be awarded through Stream 2 in the form of Small Business Research Initiative (SBRI) contracts, requiring risk-sharing.
Delivery was to be phased, with down-selection after Phase 1 (feasibility).
| Phase |
Revised Indicative timeline |
Indicative available funding (per project) |
| Phase 1: Feasibility Studies |
December 2021 to May 2022 |
Up to £150,000 |
| Phase 2: Build and commission |
October 2022 to September 2024 |
Up to £9.45 million |
19 projects were funded through Stream 2 Phase 1, covering all 3 technology areas:
- thermal energy
storage
- storage, power-to-X energy storage
- and electrical energy
storage
storage.
7 projects were funded through Stream 2 Phase 2, covering all 3 technology areas.
See the application details for Stream 2
The guidance covered both streams.