UK Government Reaffirms Commitment to Large-Scale Electricity Storage by 2025

The UK government has reiterated its dedication to establishing a business model for large-scale long-duration electricity storage by 2025, focusing on onshore pipeline infrastructure for hydrogen transport. This ambitious plan aims to mitigate high user costs through a Regulated Asset Base (RAB) and external subsidy mechanism.

The development of large-scale electricity storage is crucial for the widespread adoption of renewable energy sources, which is essential for reducing greenhouse gas emissions and mitigating climate change. As the UK government takes steps to establish a business model for this technology, it sets a precedent for other countries to follow, potentially accelerating the global transition to a low-carbon economy.

The government's commitment to large-scale long-duration electricity storage is crucial for achieving its renewable energy goals. The focus on onshore pipeline infrastructure for hydrogen transport highlights the importance of developing a comprehensive energy storage system.

Although the government has faced criticism for diluting or delaying some of its key climate policies, many significant new policy measures are still imminent. The government has confirmed its intention to lay legislation before Parliament this year to enable new Extended Producer Responsibility (EPR) rules for packaging to come into force from January 1st, 2025.

Why this matters: These EPR rules will have significant implications for packaging companies and consumer goods giants, with businesses asked to pick up more of the tab for the cost of recycling waste packaging. As political commentator Matthew D'Ancona argues, "Whether politicians and the public like it or not, we are entering an era of big government." The climate crisis and energy transition require more interventionist governments.

The UK government's reaffirmed commitment to providing a business model for large-scale long-duration electricity storage by 2025, with a focus on onshore pipeline infrastructure for hydrogen transport, is a significant step forward. The proposed Regulated Asset Base and external subsidy mechanism aim to mitigate high user costs. As the government lays the groundwork for new Extended Producer Responsibility rules for packaging, it is clear that bold action is needed to address the climate crisis and accelerate the energy transition.

Key Takeaways

• UK government aims to establish business model for large-scale electricity storage by 2025.
• Focus on onshore pipeline infrastructure for hydrogen transport to reduce user costs.
• Regulated Asset Base and external subsidy mechanism to mitigate high user costs.
• New Extended Producer Responsibility rules for packaging to come into force from 2025.
• Government intervention crucial for addressing climate crisis and energy transition.