Key Government Policies and £246m Investment to Support Vital Role of Energy Storage in UK
redT energy plc (AIM:RED), the energy storage technology company, welcomes this morning's announcement from the Department for Business, Energy & industrial Strategy ("BEIS") concerning the launch of the £246m Faraday Challenge and the unveiling of the new Smart Systems and Flexibility Plan, jointly published by BEIS and Ofgem.
The move will provide a welcome injection of funds into the UK's energy storage sector, through the Faraday Challenge, a coordinated programme of competitions, aimed at supporting world class research and innovation within the industry and assisting the 'scale-up' of new energy storage technologies. In tandem, the new Smart Systems and Flexibility Plan will introduce a raft of new measures designed to remove exisiting barriers to energy storage within the UK energy policy framework. This will include an explicit definition of storage as a sub-set of generation within policy terms, the removal of so-called 'double charging' for energy storage and a review of the existing electricity tariff structure, a move widely considered to further inventivise energy storage and flexibility within the UK.
Today's announcement is an important step forward in creating a logical charging regime, harnessing the benefits of energy storage rather than penalising it - which is key to providing increased energy security in this market. Furthermore, redT sees these measures as a key development for the Company's own differentiated energy storage technology, further incentivising customers and creating a more attractive policy environment for widespread adoption of flow machines in the UK. This announcement is a strong statement of intent from the UK government and a key indicator that energy storage will form a core part of UK industrial and energy strategy moving forward.
Scott McGregor, CEO, redT energy commented:
"We welcome today's announcement by the Department for Business, Energy and Industrial Strategy and believe the Faraday Challenge has the potential to be the catalyst the UK renewables market needs to ensure greater adoption of energy storage technologies.
At a time when the UK grid is under increasing pressure, due to large scale power projects being taken offline, and the country's energy security is being called into question, it is vital that industrial-scale energy storage machines are looked at as a serious low cost way to decarbonise the UK economy and support the grid.
We now see the UK as a strong economic market for redT's energy storage machines.
The UK has an abundance of world leading talent and technological know-how when it comes to energy storage technologies, so the time to utilise this resource to provide low cost UK domestic energy security as well as build our technology manufacturing export sector is now.
This is smart government policy embracing the technology competitive advantage the UK has in this sector to provide jobs and a high growth export market."