A critical subsidy allocation round for the UK government's ambition to achieve clean electricity by 2030 has granted contracts to offshore wind projects capable of supplying approximately 12 million households with power.

Energy firms competed in Great Britain's most contested renewable energy subsidy tender yet, seeking agreements that lock in prices for every unit of green power they produce.

Eight new offshore wind developments received contracts following a ministerial decision to boost available funding for developers, facilitating projects valued at £22 billion.

Officials anticipate the capital injection will create 7,000 specialized positions, while reiterating their commitment that the clean energy initiative will permanently reduce household energy costs.

The allocated subsidies support offshore wind installations totaling 8.4 gigawatts in capacity, sufficient to supply clean power to over 12 million British households before 2030 concludes.

The approved projects encompass both conventional bottom-fixed turbines and innovative floating installations that enable development in significantly deeper North Sea waters.

Fixed-bottom installations in Scotland received contract prices of £89.49 per megawatt-hour in 2024 values, while English and Welsh projects secured £91.20 per megawatt-hour. The pair of floating developments obtained contracts at £216.49 per megawatt-hour.

Energy Secretary Ed Miliband stated: "We've secured a record-breaking 8.4GW of offshore wind … This is the largest amount of offshore wind procured in any auction ever in Britain or indeed Europe."

He described the outcome as "a significant step towards clean power by 2030", further noting: "The price secured in this auction is 40% lower than the alternative cost of building and operating a new gas plant. Clean, homegrown power is the right choice to bring down bills for good, and this auction will create thousands of jobs throughout Britain."

German energy giant RWE emerged as the leading winner, obtaining agreements for its Dogger Bank South and Norfolk Vanguard developments. SSE secured approval for the initial stage of its substantial 4.1GW Berwick Bank installation located off Scotland's coastline.

While the successful bid prices exceed those from earlier rounds and surpass current wholesale electricity market rates of approximately £81 per megawatt-hour, analysts suggest expanding wind capacity within Britain's energy mix may still reduce consumer costs by decreasing market prices through reduced reliance on costly gas-fired generation.

The tender's outcome was deemed essential for delivering on the government's campaign commitment to double onshore wind capacity, triple solar generation, and quadruple offshore wind by 2030, targeting a nearly carbon-free electricity grid by decade's end.

Nevertheless, authorities must replicate this landmark auction's performance by procuring an additional 8GW of offshore wind capacity at comparable prices in next year's allocation to reach their target of securing between 43GW and 50GW of offshore wind by 2030.

Alon Carmel, an offshore wind specialist at PA Consulting, characterized the allocation round as "a litmus test for the resilience of UK offshore wind after two challenging years".

Carmel noted: "The results will signal whether the sector can regain momentum toward 2030 targets or faces a prolonged slowdown."

The sector has confronted escalating expenses driven by supply chain inflation and elevated financing costs for multi-billion-pound developments. Major developers operating in American markets have additionally encountered growing political opposition under the Trump administration.

Critics have challenged the UK government's decision to accelerate offshore wind investment during a period of heightened costs. Industry advocates counter that rapid investment is essential for replacing Britain's aging nuclear and gas infrastructure, with approximately half scheduled for decommissioning before 2035.

A former Belgian minister has been appointed to lead WindEurope, the industry association announced on January 14, 2026. The leadership change comes as the wind energy sector continues to expand across both onshore and offshore segments throughout Europe.

The appointment marks a significant development for the Brussels-based organization, which represents the wind industry across the European continent. WindEurope serves as the primary voice for wind energy companies, manufacturers, and stakeholders in policy discussions and industry advancement.

This leadership transition occurs during a period of substantial growth for the wind sector, with recent developments including major offshore wind allocations in the United Kingdom exceeding 8.4 GW and Germany awarding 3.46 GW in wind tenders amid unprecedented demand and declining prices.

The selection of a former government minister to helm the trade association reflects the increasing intersection between renewable energy policy and industry leadership. Such appointments typically bring valuable governmental experience and political connections that can prove beneficial in navigating the complex regulatory landscape facing wind energy development.

WindEurope plays a crucial role in advocating for favorable policies, promoting best practices, and facilitating collaboration among wind energy stakeholders across the region. The organization works to advance both land-based and sea-based wind power as essential components of Europe's transition to clean energy.

Great Britain witnessed an unprecedented surge in renewable energy project approvals during 2025, with planning permissions nearly doubling compared to the previous year, new analysis reveals.

Data from Cornwall Insight shows that approved energy capacity across battery, wind, and solar developments reached 45GW in 2025, representing a 96% increase over 2024 figures.

Battery storage applications were the primary catalyst for this expansion, surging from 14.9GW in 2024 to 28.6GW this year, nearly doubling in scale. Meanwhile, offshore wind approvals experienced dramatic growth, skyrocketing more than sevenfold from 1.3GW last year to 9.9GW in 2025.

Over the last five years, planning permissions for battery, wind and solar installations have increased by over 400%.

Energy secretary Ed Miliband commented: "After years of delay and underinvestment, this government is keeping its promise to take back control of Britain's energy with clean homegrown power."

"Every project we approve, every investment we make is about getting the country off the rollercoaster of fossil fuel markets, protecting households and lowering bills for good."

Robin Clarke, a senior analyst at Cornwall Insight, noted that while the unprecedented increase in planning approvals demonstrates genuine progress in the UK's energy transition, numerous projects may still encounter operational delays.

"On paper, the UK's renewables pipeline has never looked stronger," he said. "But approvals don't generate electricity, and we urgently need to move from ambition to actual delivery of these projects. Too much capacity is still stuck in queues or waiting on grid upgrades. Grid bottlenecks remain one of the biggest risks to turning today's approvals into tomorrow's power."

Despite faster approval rates, Cornwall notes that actual project commissioning has not kept pace, primarily due to extended construction periods and grid connection holdups.

Numerous developments have remained trapped in a "first come, first served" connections queue, though recent regulatory changes eliminating "zombie projects" and implementing a "first ready, first needed, first connected" system are anticipated to resolve some obstacles and accelerate Britain's renewable energy expansion.

Earlier this month, Great Britain's energy system operator terminated hundreds of electricity generation projects to address a massive backlog that had prevented numerous "shovel-ready" developments from accessing the power grid.

Over half the queued energy projects will be eliminated to accommodate approximately £40bn worth of schemes deemed most capable of supporting the government's objective to establish a nearly zero-carbon power system by 2030.

The acceleration in Britain's renewables sector during 2025 may also reflect developers hastening to complete their projects ahead of stricter grid connection requirements and forthcoming local elections that could introduce uncertainty regarding future renewable energy planning regulations.

Clarke said: "The recent grid connection reforms are a significant step forward, and should help clear some of the backlog, but they won't solve everything. We need faster decisions, more investment in the grid, and real collaboration between government, regulators and industry. Without that, these record numbers risk becoming just another statistic."

Cornwall emphasized that the swift proliferation of renewable developments will require the UK to substantially strengthen and expand its electricity grid infrastructure.

"The current infrastructure was never designed for such high volumes of intermittent generation and storage, so investment in grid flexibility, transmission upgrades, and smart technologies will be critical to ensure these projects can deliver power where and when it's needed," it said.

A consortium of three financial institutions has successfully completed a 135 million euro funding arrangement supporting Encavis' combined wind and solar energy assets totaling 199MW in northern Spain. NORD/LB, Rabobank and Siemens Bank jointly structured the deal for the renewable energy portfolio located in the Aragón region.

According to the banking partners, the asset collection encompasses three separate wind energy installations delivering 142MW of capacity alongside two photovoltaic facilities contributing 57MW. Some installations within the portfolio have already commenced commercial operations, while remaining projects are scheduled to begin generating power during the first quarter of 2026.

The financial structure incorporates multiple components, including a 117 million euro term loan with a maturity date of 30 June 2044, complemented by a 5 million euro debt service reserve facility and a 13 million euro letter of credit facility.

Each banking institution assumed distinct responsibilities within the transaction. NORD/LB fulfilled roles as mandated lead arranger, hedging bank and letter of credit bank. Rabobank similarly served as mandated lead arranger and hedging bank while additionally taking on security and facility agent duties plus letter of credit bank functions. Siemens Bank participated as mandated lead arranger.

Technical specifications for the portfolio reveal that the wind installations will operate 24 Nordex turbines, while the solar facilities will deploy 98,000 bifacial panels mounted at ground level.

Björn Heinemeyer, senior director at NORD/LB, expressed enthusiasm about extending the bank's established partnership with Encavis through backing this latest Spanish wind and solar portfolio.

Heinemeyer noted that Spain has reached a critical juncture in its renewable energy transformation, emphasizing that this portfolio will contribute significantly toward helping the nation meet its ambitious renewable energy objectives and speed up economic decarbonization efforts.

Mario Schirru, chief executive of Encavis, highlighted the collaborative nature of the transaction, stating that the productive and trustworthy partnership with Rabobank, NORD/LB and Siemens Bank, along with their advisory teams, demonstrates strong confidence in their Aragon initiative in Spain.

Schirru further explained that the company follows an established methodology of identifying and securing premium projects, then executing them alongside dependable partners through sustainable, long-term project financing structures.

Legal advisory services for the banking consortium were provided by Clifford Chance, while Watson Farley Williams represented Encavis throughout the transaction.

Ørsted has awarded contracts worth £75–100m to UK companies for its Hornsea 3 offshore wind farm, bolstering the UK supply chain. The project, featuring 231 turbines, will generate 2.9 GW of green electricity—enough to power over 3.3 million homes.

Northern England-based firms JDR Cable Systems, Severfield, and Smulders will deliver key components and services. Severfield, in its first offshore renewables contract, will supply foundation components like Suspended Internal Platforms, boat landings, and anode cages to prevent corrosion.

Smulders, operating from Wallsend, will produce secondary turbine foundation structures. JDR will handle cable connection and testing, linking turbines to offshore converter stations.

Ørsted estimates the investment will support over 300 jobs.

Benj Sykes, Head of Ørsted UK, said: “Hornsea 3 is the world’s largest offshore wind farm. As well as generating clean energy, we’re proud to support Britain’s growing offshore wind supply chain and local communities.”

Energy Secretary Ed Miliband welcomed the news, calling it “a vote of confidence in British manufacturing” and key to delivering clean power by 2030 while boosting jobs and industry in the North of England.

Chinese developer ZCGN has completed a groundbreaking 300MW compressed air energy storage (CAES) facility in Feicheng, Shandong province, setting a new record as the world's largest CAES system.

Key Highlights:

• Record-Breaking Scale: This facility surpasses the previous largest CAES project, a 100 MW installation by the Institute of Engineering Thermophysics of the Chinese Academy of Sciences, completed in October 2022.
• Advanced Technology: The plant features a multi-stage wide-load compressor and a high-load turbine expander, complemented by high-efficiency supercritical heat exchanger technology and integrated control systems.
• Cost and Efficiency: Impressively, ZCGN's facility is 30% cheaper than its 100 MW predecessor and achieves an efficiency of 72%.

The project uses an underground salt cavern reaching depths of up to 1,000 meters. The cavern boasts a gas storage capacity of more than 500,000 cubic meters.

Thanks to the country’s advanced permitting regime, the project was completed in only two years at a cost of approx. $210m.

This innovation highlights China’s rapid advancements in energy storage technology, demonstrating significant potential for cost reductions and efficiency improvements in long duration energy storage projects.

Wondrwall, a UK renewable energy firm, has launched an all-in-one battery and inverter system with up to 25.6 kWh capacity. The system comes in 6.4 kWh and 12.8 kWh versions, with stackable additional batteries for scalability.

“The modular design halves installation times, enhancing commercial viability,” the company stated. It includes a compact, untethered EV charger, available in 7 kWh and 22 kWh options, about the size of an A5 notepad.

Using lithium iron phosphate (LiFePO4) batteries, the system provides 3 kW charging power for the smaller model and 6 kW for the larger, with maximum AC outputs of 5 kW and 6 kW. The maximum PV input is 8 kW for the smaller version and 9 kW for the larger. Both models include two MPPT inputs and 99.9% efficiency.

The smaller system measures 73 cm wide, 20.5 cm deep, and 92.9 cm tall, weighing 95 kg. The larger model is 73 cm by 20.5 cm by 1.399 m, weighing 154 kg, with each additional battery adding 59.4 kg.

“Our new AI-powered renewable energy system leverages 20,000 data points, including weather forecasts, to optimise performance and costs,” Wondrwall added. The system can automatically charge cars and home batteries at the lowest or even negative electricity prices.

The entire world now accepts we need to move away from fossil fuels to alternative clean, green energy sources. At COP28 ALL governments agreed to make a just, orderly, and equitable energy transition away from fossil fuels. However, there is an invisible problem looming: insurers have been slow to offer coverage for the types of ambitious renewable energy projects we need to accelerate the energy transition.

Without insurance, it can be hard to secure the financing needed to develop and complete the energy projects. In a recent article in The Financial Times, Cara Eckholm explained the issue. Many insurers are still learning how to price coverage for renewable energy sources such as solar and wind farms. And, for more nascent solutions such as green hydrogen and long duration energy storage (LDES), there are few insurance options.

Instead of continuing to underwrite fossil fuel projects, insurance companies should redirect their expertise towards understanding the many emerging clean energy solutions. McKinsey estimates the insurance market for new energy infrastructure is likely to reach $10bn-$15bn by 2030. These numbers show that the insurers who do focus on the energy transition can reap the financial rewards.

Long Duration Energy Storage (LDES) stands as the pivotal technology driving the integration of renewable energy into our power grids, accelerating the journey towards carbon neutrality. Although the LDES Council lacks a precise duration definition, the US Department of Energy (DOE) identifies long-duration as having a storage capacity of 10 hours or more. LDES offers an affordable, reliable, and sustainable solution, facilitating the transition to renewable energy sources.

While wind, solar, and other renewables emerge as the most cost-effective forms of generation, the challenge lies in aligning their supply with demand, especially during peak periods in the morning and evening, traditionally addressed by burning fossil fuels.  

The recent upheavals in the energy sector have underscored the need for an affordable, reliable, and clean energy system, elevating energy security on the global agenda.

Beyond bridging supply-demand gaps, LDES can play a crucial role in increasing the share of renewables in the energy mix, ensuring resilience in prolonged durations for unreliable grids (such as isolated or off-grid locations), facilitating cost-effective 24/7 renewable power purchase agreements (PPAs), and providing essential stability services to the grid. It is estimated that the world's electricity grids will need to deploy 8 terawatts (TW) of long duration energy storage by 2040, representing a market potential of USD 4 trillion.

Technologies suited to longer durations

The essential attributes of energy storage technologies lie in their energy capacity (the overall stored energy quantity) and power (the discharge rate). These characteristics can either be coupled (linked together) or decoupled within a storage technology. Technologies that enable a more flexible decoupling of power and energy capacity, allowing independent scaling of each without affecting the other, may be better suited for extended-duration applications.

Pumped Hydropower

Pumped hydropower, representing 95% of all energy storage in the United States, involves pumping water to a high reservoir during low power demand and releasing it during high demand. While the technology is mature, construction costs are high, and geographical limitations exist. 

Hydrogen

Hydrogen, currently utilised in fuel cell vehicles, heavy industry, and fertiliser production, can be turned "green" by using surplus renewable electricity for electrolysis. "Power to gas" technology converts water into hydrogen for long-term storage, utilising existing natural gas infrastructure or underground caverns. Developing the hydrogen infrastructure is complex and costly, with an estimated 10-year timeline for full implementation. 

Flow Batteries

Flow batteries, employing liquid electrolytes in battery stacks for electricity generation through redox reactions, offer an alternative. While vanadium chemistry is prevalent, other variations exist. Positioned between shorter-duration Li-ion batteries and seasonal storage, their readiness is still under scrutiny.

Gravity Storage

Energy Vault employs a concept similar to pumped storage, utilising automatic cranes to create a tower of 35-ton blocks that drop when energy is needed. Although gaining attention, the durability of this technology is uncertain due to its novelty.

Compressed Air Energy Storage (CAES)

CAES is a method of converting electrical energy into compressed air during periods of low energy demand or when there is surplus electricity, typically using an electric motor-driven compressor. The compressed air is then stored in underground caverns, large tanks, or other suitable containers.  

Companies like Corre Energy have pioneered hydrogen-based compressed air energy storage (HCAES) as a form of energy storage that combines the principles of CAES with the use of hydrogen as a key component. HCAES has the potential to offer a more versatile and widely applicable solution for large-scale energy storage, contributing to the integration of renewable energy sources into the electrical grid.

Liquid Air

In this method, electricity cools air into a liquid, which, when warmed and released, spins a turbine. Highview Power, a British company, has projects with output durations exceeding 10 hours, but the liquefaction process incurs high costs.

Metal-Air Batteries

Form Energy, a US-based company, introduced an iron-air-exchange battery using iron pellets that rust in oxygen and revert to iron when the oxygen is removed. Claiming to store 100 hours of energy at less than USD 20/kWh, this new technology is still in its early stages of commercial viability.

The Finnish marine and energy technology company Wärtsilä has secured a contract to supply what it describes as "Australia's largest DC-coupled hybrid battery energy storage system (BESS)" for the National Electricity Market (NEM).

This marks Wärtsilä's ninth BESS installation in Australia, bringing the company's total Australian capacity to 1.5GW/5.5GWh. The energy storage facility is scheduled to become operational by 2028, with Wärtsilä recording the order in Q4 2025.

The contract follows Wärtsilä's earlier DC-coupled initiative in Australia - the 64MW/128MWh Fulham Solar Battery Hybrid project for Octopus Australia. That project, revealed in April 2025, was among the first major DC-coupled hybrid battery installations in the NEM.

While Wärtsilä has not revealed the specific project or developer for this battery storage system, the most substantial announced DC-coupled hybrid battery storage facility in the NEM currently is Lightsource bp's 49MW/562MWh Goulburn River solar-plus-storage development, which has recently commenced construction.

This aligns with Wärtsilä's characterization of the new project as "nearly four times the scale" of the Fulham Solar Battery Hybrid project. Energy-Storage.news has reached out to Wärtsilä for project clarification and will provide updates accordingly.

"This project is significantly larger than our earlier DC-coupled project, underscoring the need for this type of technology in expanding at scale," said David Hebert, vice president of global sales management at Wärtsilä Energy Storage.

"It's particularly exciting to work on the largest DC-coupled project in the country; DC-coupled technology is a breakthrough for hybrid renewable energy plants and a critical step towards establishing a financially viable renewable energy future."

Wärtsilä has confirmed the battery installation will incorporate a digital energy management and controls platform called GEMs, which has been implemented across multiple utility-scale BESS projects throughout Australia, including Amp Energy's 150MW/300MWh 2-hour duration Bungama BESS in South Australia. The platform will also be utilized across different phases of the 2.8GWh Eraring BESS project in New South Wales.

DC-coupled configurations connect solar generation and batteries directly via a DC/DC converter, reducing energy losses and capturing solar power that would otherwise be wasted.

When compared to conventional AC-coupled setups, the hybrid arrangement substantially enhances project economics, system efficiency, and overall grid stability.

Australia's hybrid solar-battery sector has accelerated as developers acknowledge the operational and economic benefits of co-located installations. GPG's Western Australia hybrid project showcased early implementation of hybrid configurations beyond the NEM, pairing 10.2MW of solar capacity with 2MW/1MWh of battery storage at the Kalbarri Microgrid.

The GPG project, launched in 2023, marked Western Australia's first grid-connected large-scale hybrid solar-battery facility and demonstrated the capability of hybrid systems to deliver grid services while optimizing renewable energy utilization. The project's achievements helped create technical and commercial frameworks for larger hybrid developments throughout Australia's diverse electricity markets.

The magnitude of Wärtsilä's newest DC-coupled project demonstrates the technology's advancement and increasing adoption among Australian energy market stakeholders. Although detailed capacity specifications for the new project remain undisclosed, it is anticipated to surpass the company's earlier DC-coupled installations and support Australia's renewable energy transformation goals.

Long-duration energy storage (LDES) technologies are critical for addressing the intermittency of renewable energy sources like wind and solar by storing energy for extended periods—ranging from several hours to days, weeks, or even seasons—and releasing it when needed. Unlike conventional short-duration storage technologies, such as lithium-ion batteries that typically provide power for 1–4 hours, LDES is designed to provide energy over much longer timescales, ensuring grid reliability during periods of low renewable generation or high demand. Several key technologies are being developed and deployed to meet this need.

1. Pumped Hydro Energy Storage (PHES)

Pumped hydro storage is the most established form of LDES, accounting for the majority of global energy storage capacity. It involves pumping water from a lower reservoir to a higher one when surplus electricity is available and releasing it to drive turbines when energy is needed. Pumped hydro can provide energy for hours or days and is valued for its large-scale capacity and long discharge times. However, its deployment is geographically limited to areas with suitable topography and water availability.

2. Compressed Air Energy Storage (CAES)

CAES systems store energy by compressing air into underground caverns or tanks when electricity is abundant. The compressed air is later released and heated to drive turbines when power is required. Traditional CAES uses natural gas to reheat the air, but newer designs such as adiabatic CAES aim to capture and reuse the heat from compression, making the process more efficient and environmentally friendly. CAES can provide several hours to days of storage, with large-scale potential, but like PHES, it is limited by geographical factors.

3. Thermal Energy Storage (TES)

Thermal energy storage involves storing excess electricity as heat in materials such as molten salts, rocks, or phase-change materials, which can then be converted back into electricity when needed. Concentrated solar power (CSP) plants often use molten salt thermal storage, allowing energy collected during the day to be dispatched at night. Another variation, known as “grid-scale TES,” stores energy in insulated containers of heated materials that can later drive turbines. TES systems can offer long-duration storage, are relatively cost-effective, and can be integrated with industrial heat processes, but they typically have lower round-trip efficiency compared to batteries.

4. Hydrogen Energy Storage

Hydrogen energy storage involves using surplus renewable electricity to split water into hydrogen and oxygen through electrolysis. The hydrogen can then be stored and used later in fuel cells, gas turbines, or industrial applications to produce electricity or heat. This technology is highly scalable and can provide seasonal storage—storing energy for weeks or months at a time. Hydrogen can also be transported via pipelines and stored in large quantities, making it suitable for both energy storage and decarbonising other sectors like transportation and industry. However, it is currently expensive, and efficiency losses occur during conversion from electricity to hydrogen and back to electricity.

5. Flow Batteries

Flow batteries store energy in liquid electrolytes contained in external tanks, with the size of the tanks determining the energy storage capacity. Common types include vanadium redox flow batteries and iron flow batteries. Flow batteries offer flexibility in energy capacity, long cycle life, and the ability to provide several hours of storage. They are particularly suited for grid applications where long-duration, daily cycling is needed. However, their upfront costs are still higher than conventional lithium-ion batteries, and they are generally less energy-dense, making them more suited for stationary, large-scale applications.

6. Gravitational Energy Storage

Gravitational energy storage systems store energy by raising heavy objects—such as blocks, water, or rocks—when electricity is plentiful and lowering them to generate electricity when power is needed. One example is Energy Vault’s system, which uses cranes to lift and lower massive concrete blocks. These systems offer long-duration storage with the potential for many charge-discharge cycles, minimal energy degradation, and relatively low operational costs. While this technology is still in early stages of development and deployment, it is attracting attention due to its scalability and potential for providing multi-hour storage.

7. Liquid Air Energy Storage (LAES)

Liquid air energy storage (LAES) uses excess electricity to cool and compress air into a liquid state at cryogenic temperatures. When energy is needed, the liquid air is re-gasified, expanding to drive turbines and generate electricity. LAES is capable of storing energy for days to weeks and can be scaled up for large grid applications. It offers long-duration storage with high energy density and can be sited flexibly compared to CAES or pumped hydro. LAES systems are still in the development phase, but they offer significant potential for large-scale energy storage.

8. Advanced Battery Chemistries (e.g., Sodium-ion, Zinc-air, and Solid-state Batteries)

New battery chemistries are being developed to provide long-duration energy storage with improved safety, cost, and energy density compared to conventional lithium-ion technology. Sodium-ion batteries, for example, use abundant materials like sodium and have the potential to offer lower-cost, longer-duration storage. Zinc-air and aluminum-air batteries use metal oxidation to store energy, offering high energy densities and the ability to store energy for several days. Solid-state batteries, which use solid electrolytes instead of liquid ones, promise improved energy density, safety, and longevity, although they are still in the research and development phase.

9. Mechanical Energy Storage

Mechanical energy storage technologies, such as flywheels, store energy in the form of rotational kinetic energy. Flywheels can provide short bursts of power for grid balancing and frequency regulation but are being developed for longer-duration applications by using high-speed, low-friction designs. They offer fast response times, high cycle life, and are well-suited for applications requiring frequent cycling.

10. Chemical Energy Storage

Chemical energy storage technologies convert electricity into chemicals like ammonia, methane, or synthetic fuels. These solutions can store energy for long durations and be used in multiple sectors, including transportation, heating, and electricity generation. Ammonia, for example, can be stored for long periods and used in fuel cells or turbines to produce electricity. Power-to-X solutions offer flexibility and scalability, although they are less efficient than direct electrical storage technologies.

Challenges and Future Outlook

The main challenges for LDES include high upfront costs, lower round-trip efficiencies (particularly for hydrogen and thermal storage), and the need for further technological development to improve scalability and performance. Additionally, long-duration storage must be integrated into markets and policies that currently favour short-duration solutions like lithium-ion batteries.

Despite these challenges, LDES technologies are essential for achieving deep decarbonisation, ensuring grid resilience, and enabling the full integration of renewable energy. As costs decline and policies shift towards supporting clean energy, the role of LDES will likely expand, with some estimates suggesting that hundreds of gigawatts of long-duration storage will be needed by 2050 to fully decarbonise power systems.

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A recent study conducted by LUT University in Finland suggests that the United Kingdom (UK) and Ireland have the potential to harness 27 gigawatts (GW) of wave energy capacity, paving the way for a complete transition to a 100% renewable energy system by 2050.

The comprehensive investigation explored various scenarios for the successful adoption of renewable energy in the UK and Ireland. The study identified the most efficient scenario, emphasising the need for the UK to tap into a wave energy capacity of 27GW. Given the projected threefold increase in electricity consumption by 2050, the research indicates that this wave energy contribution is essential to achieving the most cost-effective and net-zero energy system.

The research paper from LUT University concludes that a diverse mix of renewables, coupled with storage, sector coupling, and flexibility, is necessary to achieve the ambitious goal of 100% renewable energy. This multifaceted approach would encompass wind, solar, wave, tidal, geothermal, biomass, and hydropower.

Professor Christian Breyer, the lead researcher and expert in solar economy at LUT University, highlighted the global, European, and regional potential of wave power, emphasising the economic attractiveness of incorporating wave energy into the overall energy system. Breyer emphasised the importance of establishing the right framework to enable the widespread adoption of wave power.

Richard Arnold, policy director at the Marine Energy Council, echoed the significance of wave energy in the UK's energy transition. Arnold commended LUT University's report, emphasizing the UK's expertise in maritime and offshore engineering, suggesting that the country is poised to lead in harnessing wave energy. He stressed the need for the UK government to provide a clear market pathway and support for the wave energy industry, ensuring investments in coastal communities and beyond.

CorPower Ocean, a wave energy company, recently celebrated an industry breakthrough with the completion of the first cycle of ocean commissioning for its commercial-scale device off the coast of northern Portugal. Arnold pointed to this development as evidence of wave energy's readiness to play a crucial role in a secure and cost-effective transition to net zero.

In advocating for governmental support, Arnold called for a consistent route to market for wave energy, with ambitious targets of deploying at least 300MW by 2035. The Marine Energy Council recently presented evidence to the UK government's Energy Security and Net Zero Select Committee inquiry, emphasising the opportunity to embed UK content in marine energy projects, both domestically and globally.

LUT University's research findings were recently published by the Institute of Engineering & Technology, providing valuable insights into the potential of wave energy for a sustainable and renewable future in the UK and Ireland.

A record-breaking 3.8GW/9.9GWh of energy storage was deployed in the US during Q3 2024, according to Wood Mackenzie’s US Energy Storage Monitor. The deployment represents an 84% annual growth in megawatts (MH) and a 60% increase in megawatt-hours (MWh), based on the report produced in collaboration with the American Clean Power Association (ACPA).

The majority of deployments (over 90%) came from the grid-scale segment, while residential storage accounted for around 9% and commercial & industrial (C&I) made up approximately 1%.

Grid-scale installations totalled 3,431MW/9,188MWh, with Texas and California dominating the market. California alone accounted for two-thirds of the total, while Texas contributed a quarter. Arizona followed with 180MW (about 1% of the total), with smaller contributions from other states. In the residential segment, California, Arizona, and North Carolina led installations.

For 2024, total energy storage deployments across all segments are projected to reach 11.9GW/34.4GWh—an increase of 29% in GW and 26% in GWh compared to last year’s 7.8GW/20.6GWh, based on ACPA’s earlier figures.

While the report does not specify technology types, most installations are expected to rely on lithium-ion battery energy storage systems (BESS). Looking ahead, Wood Mackenzie’s five-year forecast suggests GWh growth will outpace GW growth, likely due to increasing project durations.

The firm also noted the potential impacts of Donald Trump’s recent presidential election victory. While a full repeal of the Investment Tax Credit (ITC) for energy storage is not anticipated, certain provisions may be at risk.

Kit Carson Electric Cooperative (KCEC), a utility in New Mexico, has been awarded $231 million from the U.S. Department of Agriculture (USDA) to develop green hydrogen and solar energy facilities integrated with long-duration energy storage (LDES).

This funding is part of the USDA’s $6 billion investment under the Empowering Rural America (New ERA) and Powering Affordable Clean Energy (PACE) programs, as reported by PV-Tech.

KCEC plans to allocate the grant to its Questa Green Hydrogen Project, focusing on green hydrogen production in Taos County, New Mexico, including the Picuris and Taos Native American Pueblo communities.

The initiative includes custom hydrogen facilities and co-located solar plants at closed mine Superfund wastewater treatment sites, along with LDES installations capable of up to 16 hours of storage. While the technology specifics were not disclosed, KCEC confirmed plans for battery energy storage systems (BESS).

This project aligns with New Mexico’s Energy Transition Act (ETA), which mandates rural electric cooperatives to achieve 100% carbon-free resources by 2050, with at least 80% from renewables. It also supports the Tri-State Responsible Energy Plan aimed at eliminating coal emissions in New Mexico and Colorado.

KCEC CEO Luis A. Reyes Jr. expressed gratitude for the USDA grant, stating, “This will be a game-changer for KCEC, ensuring a reliable power supply even during emergencies like wildfires or extreme natural disasters.”

The USDA’s funding is part of its broader initiative, which includes $4.37 billion in rural utility investments under the New ERA program, benefiting 10 rural electric cooperatives, six of which are incorporating BESS into their grids.

The US Department of Energy (DOE) has reported that the country's energy storage pipeline has grown by 300% since the passing of the Investment Tax Credit (ITC) and the Inflation Reduction Act.

These acts have provided financial incentives and reduced the cost of energy storage projects, leading to a surge in the number of planned projects. The increase in the energy storage pipeline is expected to enhance the reliability of the electric grid and promote the integration of renewable energy sources.

The DOE's report highlights the positive impact of government policies in driving the growth of the energy storage industry. In addition to the growth in the energy storage pipeline, the DOE's report also emphasizes the significance of Long Duration Energy Storage (LDES) technologies in achieving a sustainable and resilient energy system.

LDES technologies have the potential to store large amounts of energy for extended periods, which can help balance the intermittent nature of renewable energy sources and provide backup power during grid disruptions. The report highlights the need for continued research and development in LDES technologies to unlock their full potential and further accelerate the transition towards a clean and reliable energy future.

The U.S. Department of Energy (DOE) has issued a conditional commitment to IceBrick Energy, a subsidiary of Israeli thermal energy storage firm Nostromo Energy, for a loan of up to $305.54 million. Announced on December 9, the loan will support the financing of Project IceBrick, a virtual power plant (VPP) comprising up to 193 cold thermal energy storage (TES) installations across commercial buildings in California.

The DOE’s Loan Programs Office (LPO) will provide $303.69 million in principal and $1.85 million in capitalised interest under its Title 17 Clean Energy Financing Program. This program focuses on innovative clean energy technologies, including projects that significantly reduce greenhouse gas emissions.

Project IceBrick aims to address California's energy challenges, particularly the high evening electricity demand for air conditioning when solar generation decreases. Nostromo’s IceBrick system creates ice using a water and glycol solution during off-peak hours and uses it to cool circulated water during peak energy demand, reducing reliance on energy-intensive chillers.

The modular TES cells are produced in Texas, Iowa, and California, offering scalability across various building types. At full deployment, the project could deliver approximately 170MW/450MWh of behind-the-meter energy storage capacity, integrated and controlled through Nostromo’s Cirrus software.

This loan aligns with the Biden-Harris administration’s Investing in America agenda, which includes the CHIPS Act and Inflation Reduction Act (IRA). It also supports the Justice40 initiative, ensuring 40% of benefits from federal investments in clean energy reach disadvantaged communities.

Previous Justice40 projects include Project Maharu in Puerto Rico, which received $861.3 million for solar PV and battery energy storage installations.

If finalised, the IceBrick loan will further DOE’s efforts to scale innovative clean energy technologies and enhance grid reliability while reducing emissions. Nostromo had previously entered due diligence for a $176 million DOE loan in 2023, marking the agency’s growing activity under the Biden-Harris administration.

Vast salt caverns designed to store hydrogen are to be excavated under Britain’s biggest former naval base as part of plans to bolster the country’s energy security

UK Oil & Gas (UKOG), the company behind the scheme, has said it will seek planning permission within months. 

Each the size of St Paul’s Cathedral, the 19 caverns will be dug under Portland Harbour in Dorset and filled with enough hydrogen to fuel a power station for days. The hydrogen contained in the caverns will be reserved for emergency use and called upon when wind and solar farms are not generating enough energy to keep Britain’s lights on.

Stephen Sanderson, UKOG’s chief executive, said: “Portland Port is ideally situated for the construction of large salt caverns as it overlies a 450-metre thick, high-quality rock salt.”

The harbour’s anticipated new role storing hydrogen relies on a rock known as halite or rock salt. 

A massive layer of this has been found two miles beneath the surface – where it has been buried for at least 200 million years. Salt is highly soluble so the fact it has lasted so long shows the rock has no water running through it –  making it highly stable and suitable for storing hydrogen.

Matt Cartwright, UKOG’s commercial director, said the caverns would be created by drilling wells into the salt and then injecting fresh water to dissolve the rock. UK Energy Storage, a wholly-owned subsidiary of UKOG, will oversee the project.

Each cavern is set to be 85 metres in diameter and 90 metres high with a capacity of 320,000 metres cubed, which is roughly twice the volume of St Paul’s Cathedral.

A spokesman for UKOG said the company was moving away from oil and gas and saw a much bigger future in renewable energy.

Two major solar projects in England, totaling nearly 1 GW of capacity and including co-located storage, have received approval from the UK government. The 480 MW West Burton Solar Farm and the Heckington Fen Solar Farm, with a reported capacity of around 500 MW, have been granted development consent orders, allowing construction to proceed.

West Burton Solar Farm, located near a former coal-fired power station, will feature a 480 MW solar plant and a co-located battery energy storage system (BESS). Developed by Island Green Power, the project follows the company’s 600 MW Cottam Solar Project, which gained consent in September 2024.

Heckington Fen Solar Farm, developed by Ecotricity, is also a solar-plus-storage project. Approval was delayed due to disputes over the cable route to the nearby Bicker Fen substation. In August 2024, Ecotricity requested an extension from Secretary of State for Energy Ed Miliband to negotiate further with local landowners.

The West Burton Solar Farm faced its own delays, with a decision initially expected in November 2024. In May 2024, the Planning Inspectorate recommended withholding consent unless Island Green Power amended the project to reduce its impact on a nearby national heritage site.

These approvals continue a recent trend of large-scale solar developments securing consent. Since July 2024, the UK government has approved several projects, adding over 1.3 GW of new capacity within weeks of taking office.

The government has announced a £420 million reduction in energy bills for some of the country's most energy-intensive businesses, including those in the steel, glass, and cement industries. Speaking to the BBC, Business Secretary Peter Kyle explained that around 500 companies will benefit from a 90% discount on their electricity network charges, up from the previous 60% discount. However, Unite's secretary general Sharon Graham expressed concerns, stating that the savings would be "quite small" and that energy providers' profits were "obscene".

The announcement comes less than a month before the Budget, as the government faces questions about how to stimulate economic growth while maintaining its commitments on employment rights. Last year, the UK had the highest energy costs among the G7 group of developed nations, with industrial energy costs nearly double the average across the International Energy Agency's member countries.

At Encirc Glass in Chester, Peter Kyle said the funding aims to "level the playing field" with international competitors, and that the bill reduction will be financed through existing government tax revenue. "The savings we have made for it, we have targeted to make businesses like this more competitive, so therefore creating more jobs, more wealth, more revenue for our country," he stated.

The scheme applies across England, Wales, and Scotland, and will benefit companies such as Tata Steel in Port Talbot and INEOS in Grangemouth. The 90% reduction in network costs, which make up around 20% of a company's energy bill, translates to an 18% overall energy bill reduction.

Reacting to the news, UK Steel welcomed the increased compensation, but noted that it would only mean a £14 million cut for the struggling industry, and that firms would not see the benefit until 2027. "It is frustrating that the steel industry must face yet another year of uncompetitive electricity prices," said UK Steel's director general, Gareth Stace.

Speaking at Unite's headquarters in London, Sharon Graham criticized the energy sector's profitability, stating that research found £30 billion in profits were made in 2024, while industrial energy bills are made up of about 29% energy company profits. She also noted that roughly a third of household energy bills, around £500, goes towards energy company profits, and urged the government to nationalize the industry.

While the energy bill relief will provide some respite for heavy industry, there are broader concerns in the business community about the impact of the Employment Rights Bill, one of Labour's flagship policies. The bill, which is currently making its way through Parliament, would grant workers certain rights from their first day of employment, including protection against unfair dismissal and the right to guaranteed hours. Businesses argue that this could make hiring riskier.

Peter Kyle stated that he does not see improved worker rights as being "in contention with" business interests, and said the legislation would be implemented in a way that contributes to businesses' ability to generate profits by increasing productivity and providing workers with security and rights suited to the modern era. However, he acknowledged that he is "listening very closely" to employers and workers to ensure the right balance is struck, including through a probationary period.

For Sharon Graham, the Employment Rights Bill as it stands is "a burnt out shell" with "more holes than Swiss cheese." She criticized the bill's provisions, particularly around the ability of employers to claim financial difficulty as a justification for firing and rehiring workers.

The rapid expansion of renewable energy is transforming global power systems, but a critical challenge looms: the infrastructure to deliver that energy where it’s needed. As wind farms push further offshore and countries look to trade electricity across borders, the demand for long-distance transmission cables is surging. However, industry experts warn that by the second half of this decade, a shortage of high-voltage cables could slow progress, making connecting clean energy to the grid a bigger hurdle than generating it.

Under current policies and market trends, global renewable energy capacity is projected to reach 7,300 gigawatts by 2028. But as the world races to scale up wind and solar power, the challenge isn’t just generation - it’s transmission. Offshore wind farms are being developed farther out at sea for stronger, more consistent winds, while nations seek to import renewable power from regions with better natural resources. Cross-border energy trading can help balance supply fluctuations and reduce costs, but it requires robust, high-voltage direct current (HVDC) cable networks to transfer power efficiently across vast distances.

A prime example is the proposed Xlinks project, which aims to deliver Moroccan solar and wind energy to the UK by 2030 via a 3,800km undersea cable. The cable alone will make up nearly half of the project’s £20 billion budget. Even the most advanced HVDC cables experience some power loss - around 3% per 1,000 kilometres - but they remain the most efficient solution for long-range energy transmission.

A Looming Cable Shortage

The next decade will bring an unprecedented surge in demand for high-voltage cables. While China has developed a robust domestic cable industry, supplying mainly its own market, global supply chains remain heavily dominated by a few key players. Consultancy firm 4C Offshore estimates that with the rapid expansion of offshore wind farms and rising demand for cross-border interconnectors, a shortage of HVDC cables (outside of China) could emerge by the late 2020s.

Currently, just three European companies dominate the market, controlling over 75% of the supply for these essential cables: NKT, Prysmian and Nexans. Efforts are underway to address this bottleneck, with new cable manufacturing plants planned in the UK and other countries. However, expanding production capacity is neither simple nor immediate. Building HVDC cable factories requires high capital investment, specialized infrastructure, deep-water port access, and a skilled workforce. These challenges mean that while the world accelerates renewable energy deployment, delivering that power to consumers may become the most pressing obstacle.

As governments and investors push forward with clean energy targets, securing the infrastructure to connect and distribute this power must become a top global priority. Without sufficient transmission capacity, the green energy transition risks stalling—not from a lack of renewable resources, but from the inability to efficiently deliver them.

President Donald Trump has announced plans to declare a national energy emergency to enhance U.S. oil and gas production while reducing energy costs for American consumers. This initiative is part of a larger strategy to strengthen domestic energy industries and counter prior efforts to accelerate the transition to electric vehicles.

Trump highlighted America’s unmatched oil and gas reserves and pledged to use these resources to revitalize the nation’s manufacturing sector. While his predecessor, Joe Biden, oversaw record energy production amid global market challenges, Trump criticized the focus on shifting away from fossil fuels.

Under the emergency declaration, Trump could relax environmental regulations on power plants, expedite permits for energy infrastructure, and open federal lands for industrial and energy development. Additionally, he announced plans to revoke what he referred to as an "electric vehicle mandate," claiming this would protect the U.S. automotive sector.

The growing energy demands of artificial intelligence and data centers were also flagged as a priority, with Trump citing the need to ensure the power supply aligns with national technological advancements.

Trump committed to refilling the Strategic Petroleum Reserve (SPR) to its maximum capacity, following significant drawdowns under the previous administration to stabilize fuel prices. Further initiatives include expanding resource development in Alaska, leveraging the state's oil, gas, and critical minerals, while rolling back policies targeting gas-powered appliances.

These actions underscore Trump’s commitment to energy independence, prioritizing traditional energy resources while asserting U.S. dominance in global energy markets.

The global energy transition is at a crossroads. As geopolitical shifts and changing investment priorities threaten to stall progress, the need for steadfast commitment to renewable energy has never been greater. While some investors retreat in response to uncertainty, Chair Capital remains resolute in its mission: accelerating the energy transition through strategic investment in renewable energy storage.

The Changing Landscape of Renewable Energy

The recent policy shifts in the United States and a renewed focus on fossil fuels by some governments have raised concerns about the future of clean energy investment. However, Europe remains at the forefront of the renewable energy transition, with the European Union doubling down on security of supply through sustainable alternatives.

Chair Capital has been approached by multiple European governments seeking solutions to strengthen energy security. The firm has emerged as a pivotal player in addressing one of the most pressing challenges of our time: ensuring a reliable, resilient, and sustainable energy infrastructure through long-duration energy storage (LDES).

A Market in Demand: Chair Capital’s $3.1 Billion Investment Pipeline

The need for energy storage has never been greater. Renewable sources such as wind and solar are inherently intermittent, making efficient storage solutions critical to maintaining a stable energy supply. Chair Capital is currently engaged with 18 projects globally, representing a total investment requirement of $3.1 billion.

“There is a huge demand for investment in energy storage,” says Darren Green, CEO of Chair Capital. “Governments and corporations alike recognise that without significant storage capacity, we cannot fully transition to renewable energy. That’s why we are focused on funding and developing large-scale projects that provide long-term energy security.”

The Rise of Long-Duration Energy Storage (LDES)

The next big leap in renewable energy infrastructure is LDES. Unlike traditional battery storage, which is limited to short duration applications, LDES enables energy to be stored for days or even weeks, providing a critical buffer during periods of low generation.

“LDES is the key to true energy independence,” says Green. “We believe nations that invest in this technology will secure their future energy supply, reduce reliance on fossil fuels, and create a more resilient power grid.”

Investing in the Future

While some investors hesitate, Chair Capital is taking action. By focusing on scalable, long-term energy storage solutions, the firm is not only addressing immediate energy security concerns but also laying the foundation for a cleaner, more sustainable future. As the world grapples with shifting energy priorities, Chair Capital remains a beacon of stability and progress. The firm’s unwavering commitment to renewable energy storage ensures that the energy transition continues, because the future of energy security depends on it.

For investors looking to be part of the next wave of renewable energy innovation, the message is clear: the time to act is now.

Following the successful deployment of time-dependent transmission right (TDTR) contracts that freed up over 9 GW of high-voltage network capacity during low-demand periods, Dutch grid operator Tennet is preparing to assign approximately two-thirds of these connection opportunities to battery energy storage facilities.

The implementation of TDTR agreements by Tennet this year brought renewed optimism to over 70 GW worth of clients - predominantly utility-scale battery storage developments - that have been waiting in the grid connection backlog. Recent data indicates that battery storage projects will receive the majority of this newly available network capacity.

Tennet's assessment shows that as much as 9.1 GW of transmission capability exists on the high-voltage network during non-peak periods - infrastructure that can be efficiently harnessed through TDTR arrangements.

These contracts provide clients linked to Tennet's high-voltage infrastructure with transmission access for a specified annual duration, guaranteed for no less than 85% of operating hours. The arrangement covers both electricity procurement and delivery. For the remaining 15% of time, Tennet retains authority to partially restrict electricity purchases or injections, particularly during anticipated demand surges. The operator must provide customers with at least 24-hour advance notice of such limitations.

This framework proves especially valuable for organizations capable of flexible energy consumption, including battery storage facilities, industrial processors, and businesses operating backup power systems. Tennet's analysis suggests that adaptable grid customers could achieve savings of up to 65% on transmission fees by combining TDTR agreements with strategic utilization of time-variable pricing structures.

During his presentation at the Energy Storage Global Conference in Brussels last week, Bob Ran, business developer flexibility, strategy and partnerships at TenneT, disclosed that approximately two-thirds of TDTR allocation will support battery storage, enabling roughly 6 GW of developments. Nevertheless, over half of the battery project applications might not secure their complete requested allocation, potentially requiring developers to reduce project scales.

Numerous project developers continue awaiting confirmation from Tennet regarding their TDTR approval status. Ran indicated that clarity on these decisions should emerge by year-end.

Ran further highlighted that TenneT's Netherlands connection pipeline currently encompasses approximately 60 GW of battery storage capacity, while the country's existing peak demand reaches about 20 GW. His September 1, 2025 pipeline update showed 4.1 GW of projects advancing to the implementation stage - where developers have commissioned TenneT to construct grid connections at costs reaching millions of euros. An additional 29 GW of battery storage developments remain in preliminary design phases.

Tennet projects that 5-7 GW of battery storage capacity will achieve economic viability by 2030. The company's 2050 projections anticipate between 14-27 GW of transmission-connected battery systems throughout the Netherlands.

While TDTRs offer encouraging prospects, the Dutch battery storage industry confronts substantial obstacles, including missing national storage objectives, absent capacity markets, and insufficient financial incentives. Project developers also navigate severe grid congestion, elevated transmission costs, and no special provisions for battery systems, creating expensive and complicated large-scale implementation conditions. However, roughly 1 GW of battery storage facilities currently operate, reflecting the industry's measured yet consistent expansion.

According to new analysis by BloombergNEF, thermal and compressed air technology are already cheaper energy storage solutions than battery storage.

The latest research shows the growing competition faced by lithium-ion batteries from emerging long duration energy storage (LDES) solutions. Despite being in the early stages, certain LDES options, like thermal energy and compressed air energy storage (CAES), are demonstrating cost advantages over lithium-ion for longer durations.

Thermal energy storage and CAES, for example, have an average capital expenditure of $232/kWh and $293/kWh, respectively. Lithium-ion batteries meanwhile came in at $304/kWh for four-hour duration systems.

Experts highlight the crucial role of supportive policies and continuous technological advancements in promoting the broader adoption of LDES and boosting their competitiveness with lithium-ion batteries.

The news of the adoption of the Net Zero Industry Act by Governments across the EU will certainly help here too. Julia Souder, CEO of the Long Duration Energy Storage Council, said "It’s clear LDES technologies have entered into a virtuous cycle where growing market adoption is spurring increasing innovation and cost efficiencies.".

The exponential growth of artificial intelligence (AI) has revolutionised numerous industries, but its hunger for computing power comes at a cost. The extensive use of AI technologies, such as deep learning and data processing, has led to a surge in electricity consumption.

Long Duration Energy Storage (LDES) systems, particularly Compressed Air Energy Storage (CAES), offer a promising solution to mitigate this energy-intensive challenge.

The computational demands of AI applications, coupled with the need for powerful hardware infrastructure, have significantly increased electricity usage. Data centres, where AI algorithms are trained and executed, consume massive amounts of energy, contributing to carbon emissions and straining power grids. As AI continues to advance and find applications in various sectors, it becomes crucial to address the environmental impact of its energy consumption.

Enter LDES, a game-changing approach to storing and utilising electricity efficiently over extended periods. CAES stands out as one of the best LDES solutions that can alleviate the electricity demand associated with AI computing power. CAES enables the storage of excess renewable energy, such as wind or solar power, by compressing air and storing it in underground salt caverns.

By coupling AI computing power with CAES, we can optimise electricity usage in two significant ways. Firstly, during periods of high AI activity and abundant renewable energy, CAES captures and stores the surplus electricity that would otherwise go to waste. This stored energy can then be released during peak demand periods, powering data centres and reducing strain on the grid.

Secondly, CAES enhances grid stability by providing backup power to critical AI systems during blackouts or emergencies. As the stored compressed air can be rapidly converted into electricity, it ensures uninterrupted operation and safeguards against the potential loss of valuable data or AI-enabled services. This resilience not only contributes to a more reliable AI infrastructure but also reduces reliance on fossil fuel-powered backup generators, leading to a greener energy ecosystem.

CAES offers cost-effectiveness for long duration energy storage, making it an ideal fit for addressing the electricity consumption of AI computing power. Compared to alternative storage technologies like lithium-ion batteries, CAES boasts longer lifespans and lower maintenance costs. Its utilisation of existing infrastructure, such as natural gas pipelines or underground caverns, minimises the need for significant capital investments.

However, the potential of CAES as an LDES solution for AI computing power consumption can be further enhanced through ongoing research and development. Innovations in advanced air compression techniques, heat recovery systems, and integration with renewable energy sources can optimise the efficiency, cost-effectiveness, and environmental impact of CAES.

By efficiently storing and utilising excess renewable energy, CAES optimises electricity usage, enhances grid stability, and contributes to a greener energy ecosystem. Embracing the power of LDES, we can ensure that AI continues to advance sustainably, minimising its environmental footprint while driving innovation and progress.

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Spain installed 1,182 MW of new rooftop PV systems in 2024, bringing its total rooftop PV capacity to 8.137 GW, according to UNEF. This represents a 31% decrease from 2023.

Of the new capacity, industrial PV systems accounted for 674 MW, while commercial and residential sectors added 207 MW and 275 MW, respectively. UNEF attributed the slowdown to the end of key growth drivers like high energy prices and subsidies from the Next Generation program.

“To achieve the National Energy and Climate Plan (PNIEC) target of 19 GW of self-consumption by 2030, Spain must install an average of 1.8 GW annually,” said José Donoso, UNEF’s general director.

UNEF emphasized the need for increased public awareness of self-consumption as a cost-saving solution. It also proposed measures for national and regional institutions, such as exempting systems from access and connection permits if they inject no more than 15 kW for low-voltage or up to 100 kW for medium/high-voltage systems. Additionally, UNEF called for raising simplified processing limits from 100 kW to 450 kW.

SSE Renewables unveiled ambitious plans on Monday (22 May) to transform what it hails as Britain’s largest conventional hydro power plant into a pumped hydro storage facility.

The energy provider disclosed its intentions to convert the 152.5MW Sloy hydroelectric power station, nestled on the banks of Loch Lomond in Argyll and Bute, central Scotland, into a pumped hydro energy storage (PHES) system.

Pending final project design, SSE projects that the revamped Sloy scheme could offer up to 25GWh of long-duration electricity storage capacity. This translates to the provision of flexible renewable energy for up to 160 continuous hours.

Finlay McCutcheon, SSE Renewables' Director of Onshore Europe, emphasized the significance of repurposing the Sloy facility, stating, “In converting our existing Sloy conventional hydro power plant to a pumped hydro storage facility, we can provide the additional large-scale, long-duration electricity storage we need as part of the country’s future energy mix.”

He added, “The development of pumping capability at Sloy also complements our development plans for our other pumped hydro storage project at Coire Glas. Taken together and if approved for delivery, Coire Glas and Sloy can treble Britain’s current flexible electricity storage capacity.”

The conversion process for the Sloy project will entail refining the project design to transition from conventional hydro power to pumped hydro storage technology. This will be followed by a period of public consultation later this year. SSE anticipates that a planning application could be submitted to the Scottish Government by late 2023 or early 2024, with a final investment decision expected by late 2025 and full commissioning targeted for 2028.

Scottish Government Cabinet Secretary for Net Zero, Energy and Transport, Humza Yousaf, emphasized the potential role of hydro power and long-duration energy storage technologies in the transition to net zero, urging the UK Government to provide appropriate market mechanisms to realize this potential fully.

SSE's venture into pumped hydro storage aligns with its broader commitment to renewable energy flexibility in Scotland. Earlier reports indicated the company's allocation of £100 million to bolster the Coire Glas pumped hydro storage project, poised to significantly enhance Britain’s electricity storage capacity. Located near Loch Lochy, the Coire Glas project has the potential to deliver 30GWh of long-duration energy storage, with an estimated construction investment exceeding £1.5 billion.

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Outlined in the "Long-duration Energy Storage: Get on with it" report is the pressing need for swift governmental action to facilitate the scaling up of long-duration energy storage (LDES) technologies. The aim is to integrate these technologies into the electricity system's decarbonisation efforts within a mere 11 years.

This committee, a constituent of several select committees established by the House of Lords, is tasked with examining and delving into overarching issues impacting the nation. The report underscores the necessity for a coordinated approach to catalyse investment in LDES and ensure the provision of a strategic reservoir of storage. Such measures are vital not only for achieving net zero emissions but also for shielding the UK from potential energy supply disruptions - an assertion echoed by stakeholders across the energy sector.

One prominent concern raised by industry players in response to the government's consultation on LDES technologies revolves around the exclusion of lithium-ion batteries from the LDES framework. Notably, Luke Gibson, COO of battery developer-operator Field, argued that the exclusion of lithium-ion technology for durations of up to 6 hours warrants reconsideration.

The committee's report addresses this issue, emphasising that the predominant emphasis on lithium-ion batteries has posed a significant impediment to the advancement of LDES technologies. It asserts, "One of the key barriers is that there is still too much focus on lithium-ion.". Despite expressing appreciation for the government's recent energy system reforms, such as the commitment to crafting a Strategic Spatial Energy Plan, the report raises concerns regarding the ambiguity surrounding the plan's implementation and the management of future energy supply crises.

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US-based sodium-ion BESS startup Peak Energy has launched a battery cell engineering centre in Broomfield, Colorado, in collaboration with the Colorado Office of Economic Development and International Trade (OEDIT).

The centre, set to become operational this month, aims to advance the US sodium-ion battery supply chain and similar technologies. Peak Energy plans to begin manufacturing sodium-ion battery cells by 2027, with a fully domestic supply chain targeted for 2030.

The company intends to use sodium-ion technology to support Colorado's goal of achieving 100% renewable energy by 2040, as outlined by Governor Jared Polis. In July, Peak Energy secured $55 million in Series A funding, led by Xora Innovation, along with support from Eclipse, TDK Ventures, and other investors. Anil Achyuta of TDK Ventures noted sodium-ion's potential, stating, "Lithium-ion will be the foundation of electrification, but sodium-ion offers significant advantages for grid-scale energy storage."

Sodium-ion technology is gaining traction as a cost-effective and safer alternative to lithium-ion batteries. A report from BCC Research forecasts demand for sodium-ion batteries to grow from $318 million in 2023 to $838.5 million by 2029, driven by its suitability for grid-level applications and advancements in safety and performance.

The US Department of Energy (DOE) has committed $50 million over five years to establish the Low-cost Earth-abundant Na-ion Storage (LENS) Consortium, led by Argonne National Laboratory. This initiative is part of the DOE's Energy Earthshots program, which focuses on accelerating R&D and commercialization of sustainable energy storage technologies, including sodium-ion.

The Ontario government is launching a new rebate program to support home energy efficiency upgrades. The Home Renovation Savings Program, starting Jan. 28, will provide rebates covering up to 30% of costs for heat pumps, rooftop solar panels, battery storage, and energy-efficient windows, doors, and insulation.

Later this year, the program will expand to include rebates for energy-efficient appliances such as refrigerators and freezers. This initiative is part of a CAD 10.9 billion ($7.6 billion), 12-year investment in energy efficiency, which the provincial government describes as the largest in Canadian history.

Among the additional measures is the expansion of the Peak Perks Program, which offers virtual prepaid credit cards to small businesses for each eligible smart thermostat connected to central air or heat pump systems. The government is also continuing the Retrofit Program, which provides incentives for businesses to upgrade energy efficiency equipment. Other programs will extend support to low-income households, municipalities, institutions, the agricultural sector, industry, and on-reserve First Nations communities.

The government estimates that the expanded energy efficiency programs will reduce Ontario’s peak energy demand by 3 GW by 2036, equivalent to removing three million homes from the grid. In September, Ontario announced plans for large-scale energy procurement, including solar, bioenergy, and wind projects. The Independent Electricity System Operator (IESO) has recommended acquiring 5 GW of new resources by 2034 and is finalizing a framework for implementation.

The New York Public Service Commission (PSC) has approved a plan to guide the state toward its 2030 energy storage target, including proposals for large-scale battery storage.

Governor Kathy Hochul announced on June 20 that the Energy Storage Roadmap 2.0, created by the New York Department of Public Service and the New York State Energy Research and Development Authority (NYSERDA), has been approved. On the same day, she also announced a new competitive solicitation for onshore renewable energy resources, administered by NYSERDA.

Both renewable energy and energy storage are critical to achieving the state's targets, which include 70% renewable energy on the New York grid and the deployment of 6GW of energy storage by 2030. These targets are central to the state’s Climate Protection and Community Leadership Act (CPCLA), initiated by former Governor Andrew Cuomo and expanded by Hochul when she took office in early 2023.

Hochul highlighted that increasing energy storage would help New York transition to 100% emissions-free electricity by 2040, improve air quality, and reduce electricity system costs by about $2 billion. As of April, the state had awarded approximately $200 million in incentives for 396MW of battery energy storage systems (BESS) in operation, with an additional 581MW in development. However, New York lags behind leading states like Texas and California, with California having over 10GW of batteries connected to its grid.

The Energy Storage Roadmap 2.0, published just before 2023, includes six main proposals. Among these are NYSERDA-led solicitations for 4.7GW of storage across utility-scale, commercial and industrial (C&I), community storage, and residential systems. Utility-scale storage procurement will use an 'Index Storage Credit' mechanism similar to New York’s Renewable Energy Certificate (REC) scheme, aiming to mitigate merchant risk for storage developers while balancing profits.

The Index Storage Credit mechanism is set to account for 3GW of utility-scale storage. Existing NYSERDA block incentive programs will support the development of 1.5GW of community storage and 200MW of residential storage. The roadmap also includes provisions for 35% of program funding to benefit disadvantaged communities and reduce reliance on fossil fuel-powered peaker plants.

Furthermore, electric utilities will be required to conduct comprehensive studies on the value of investing in energy storage as alternatives to costly transmission and distribution upgrades. Research and development in areas such as long-duration energy storage (LDES) will be prioritized at the state level. Workers on projects qualifying for state programs will need to be paid prevailing wages.

Despite a slow start and setbacks such as fires at BESS projects in 2023, the state's efforts, including new fire safety recommendations, aim to accelerate progress. Dr. William Acker, executive director of New York BEST, remarked that the new roadmap would create a strong market for energy storage in the state.

Governor Hochul stated, "Expanding energy storage technology is a key component to building New York’s clean energy future and reaching our climate goals. This new framework provides New York with the resources it needs to speed up our transition to a green economy while ensuring the reliability and resilience of our grid."

A revolutionary project combining solar energy generation and battery storage to deliver 1GW of continuous, dispatchable power was announced during Abu Dhabi Sustainability Week (ADSW). Dr. Sultan Al Jaber, UAE Minister of Industry and Advanced Technology and Chairman of Masdar, revealed plans for the state-of-the-art renewable energy plant at the event's opening ceremony on Monday, January 12.

The facility will pair 5.2GWdc of solar PV generation with a 19GWh battery storage system, enabling it to supply up to 1GW of reliable ‘baseload’ power 24/7. Highlighting the project’s significance, Al Jaber stated, “For decades, the biggest challenge facing renewable energy has been intermittency. Today, we have an answer. This is the world’s first renewable energy facility capable of providing energy at scale, around the clock.”

The announcement, attended by dignitaries including UAE President Sheikh Mohamed bin Zayed Al Nahyan, underscored the UAE’s commitment to advancing clean energy solutions. Located in Abu Dhabi at an undisclosed site, the project is a joint effort by Masdar and the Emirates Water & Electricity Company (EWEC), with additional partners yet to be disclosed. Details on the technology providers, battery types, and project timelines remain under wraps.

Mohamed Hassan Alsuwaidi, UAE Minister of Investment and CEO of Abu Dhabi Developmental Holding Company PJSC (ADQ), remarked, “The integration of solar power with advanced battery energy storage sets a new benchmark for clean energy, driving sustainability and significantly reducing carbon emissions.”

Dr. Al Jaber emphasized, “This project will, for the first time, transform renewable energy into baseload energy, marking a significant step forward in the global energy transition.”

Australian investment bank Macquarie Asset Management (MAM) has agreed to acquire a substantial minority stake in U.S. independent power producer D.E. Shaw Renewable Investments (DESRI) in a deal valued at up to US$1.73 billion.

DESRI, which develops, owns, and operates large-scale solar PV, wind, and battery energy storage systems across the U.S., has a development pipeline exceeding 25GW, with 6GW already in operation or under construction.

The company holds long-term power purchase agreements (PPAs) with a diverse range of off-takers, including corporations, utilities, and cooperatives in 24 states. This acquisition complements MAM’s existing portfolio of 12GW of operational capacity and more than 90GW of green energy assets in development.

MAM's funds include the Macquarie Global Infrastructure Fund (MGIF), Macquarie Green Energy and Climate Opportunities Fund (MGECO), and the Macquarie Energy Transition Infrastructure Fund International (METI).

D.E. Shaw is also advancing a 260MWh solar-plus-storage project in New Mexico, following its 200MW San Juan solar project and 28MW Alta Luna solar project, both of which contribute to its growing portfolio.

David Zwillinger, CEO of DESRI, expressed excitement about the partnership, stating it would help accelerate their growth in the renewable energy sector.

Vanadium flow battery manufacturer Invinity Energy Systems, a long duration energy storage (LDES) company, has raised £56 million via a share placing and subscription. This follows the subscription with UK Infrastructure Bank (£25 million) and Korea Investment Partners (£3 million) conditionally raised gross proceeds of £28 million through the subscription of 121,739,130 new ordinary shares at the issue price.

“Invinity’s vanadium flow batteries are a crucial form of long duration energy storage – unlocking the power of renewables by filling in the ‘missing hours’ when the wind does not blow and the sun does not shine,” a statement said.

Larry Zulch, CEO at Invinity said: “We believe that long duration energy storage has an essential role to play in the global transition to a sustainable electricity system. This investment provides Invinity with the opportunity to scale up to help meet the significant global demand for batteries with the characteristics that make our vanadium flow battery unique: high performance, long asset life, compelling total ownership economics, and no propensity to catch fire.”.

Invinity has 75 MWh of batteries either deployed or contracted for delivery across 82 projects in 15 countries on five continents. The company has operations in the UK, Canada, USA, Australia and China.

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Former Australian Prime Minister and current president of the International Hydropower Association (IHA), Malcolm Turnbull, has issued an open letter to Rishi Sunak, urging for the swift implementation of the cap and floor mechanism for long-duration energy storage (LDES). In the letter, Turnbull highlights that the UK possesses nearly 7GW of shovel-ready pumped storage hydropower projects, boasting over 135GWh of storage capacity. These projects stand poised to significantly contribute to the UK's decarbonisation efforts while bolstering energy security.

Should these projects come to fruition, the UK's energy storage capacity would undergo a five-fold increase. Turnbull applauds the recent LDES government consultation, recognising it as a step forward in establishing a policy framework conducive to the rapid deployment of LDES technologies like pumped storage hydropower (PSH).

Turnbull underscores the critical role of technologies like PSH in the UK's transition to net zero emissions. With the rapid proliferation of variable renewable energy sources such as solar and wind, energy storage technologies become imperative to ensure supply security, particularly during periods of low generation.

Traditionally, gas peaker plants have served as a fallback to ensure supply security, but their carbon footprint undermines net zero goals. Turnbull argues that PSH and battery technologies offer viable alternatives to replace these carbon-intensive plants.

Drawing from his experience, Turnbull cites a case study from South Australia, where a state-wide electricity blackout occurred in 2016 due to insufficient firming of renewable energy sources, predominantly wind. This incident prompted the Australian government to prioritise storage and pumped hydro, leading to the development of projects like Snowy Hydro 2.0.

Turnbull emphasises that pumped storage has since played a pivotal role in Australia's energy transition, with projects like those in Queensland rivaling the scale of Snowy 2.0.

In his letter, Turnbull offers recommendations to the UK government to support LDES technologies. He advocates for expeditious delivery of the LDES scheme, aiming for the first application window to open by early 2025, focusing on mature projects to bolster investor confidence.

Additionally, Turnbull suggests guaranteeing future application windows, setting soft targets for LDES, and ensuring long-term contract visibility. Coupled with comprehensive reforms of the electricity market, including the Capacity Market, these measures would enhance remuneration for grid services and foster investor certainty.

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Highview Power has secured the backing of the UK Infrastructure Bank and energy leader Centrica with a £300 million investment for the first commercial-scale liquid air energy storage (LAES) plant in the UK.

The £300 million funding round was led by the UK Infrastructure Bank (UKIB) and the British multinational energy and services company Centrica, alongside a syndicate of investors including Rio Tinto, Goldman Sachs, KIRKBI and Mosaic Capital.

Richard Butland, Co-Founder & CEO of Highview Power said: “There is no energy transition without storage. The UK’s investment in world-leading offshore wind and renewables requires a national long duration energy storage programme to capture excess wind and support the grids transformation.”.

The investment will enable the construction of one of the world’s largest long duration energy storage (LDES) facilities in Carrington, Manchester, using Highview Power’s proprietary LAES technology.

Once complete, it will have a storage capacity of 300 MWh and an output power of 50 MWs per hour for six hours. Construction will begin on the site immediately, with the facility operational in early 2026, supporting over 700 jobs in construction and the supply chain.

Developer-operator GridStor has acquired a 200MW/800MWh battery energy storage system (BESS) project in development in Oklahoma, US, from Black Mountain Energy Storage (BMES).

The Southwest Power Pool (SPP), the Regional Transmission Organization (RTO) overseeing electric grid operations across 14 states, including Oklahoma, has highlighted the urgent need for new power resources by 2030 to maintain grid reliability and meet increasing demand from data centers and industrial customers.

The newly acquired BESS will be developed in two phases in Eastern Oklahoma, where multiple data centers are either operational or under development, placing growing demands on regional power infrastructure.

This project marks GridStor’s second major BESS acquisition within the past year. In 2024, the company acquired a 220MW/440MWh standalone BESS project in Galveston County, Texas, which commenced construction in October.

GridStor, backed by Goldman Sachs Asset Management, began commercial operations of its first project, the 60MW/160MWh Goleta BESS facility in California, in late 2023.

Chris Taylor, CEO of GridStor, commented on the acquisition: “Battery storage is a scalable and near-term solution to enhance SPP system reliability and support its largest customers.”

“Batteries provide energy to stabilize the grid and meet peak demand hours daily across multiple US regions. This acquisition reaffirms GridStor’s commitment to rapidly integrating battery energy storage into the SPP grid to meet the evolving needs of businesses and residents.”

Gore Street Energy Storage Fund has completed the energisation of Big Rock, a 200 MW / 400 MWh battery storage project in California, increasing the fund’s total energised capacity to 621.4 MW / 792.1 MWh across five grids.

Big Rock, Gore Street’s largest asset to date, represents a 47% boost in its energised capacity. The project has secured a 12-year fixed-price Resource Adequacy (RA) contract valued at over $165 million. The RA is stackable, allowing multiple revenue streams. While RA revenue begins in June 2025, the asset is expected to generate merchant revenue earlier.

Big Rock is also eligible for an investment tax credit (ITC) of up to 30% of qualifying capital expenditures under the Inflation Reduction Act.

Meanwhile, construction at Dogfish, a 75 MW / 75 MWh asset in Texas, is progressing well, with major cabling work complete and energisation on track for February. However, the 57 MW / 57 MWh Enderby project in the UK has been delayed due to last-minute transformer inspections required by National Grid Electricity Transmission (NGET). Gore Street is working with suppliers to complete energisation in the coming weeks.

Alex O’Cinneide, CEO of Gore Street Capital, stated: “With Enderby and Dogfish set to energise soon, our portfolio is on track to reach 753.4 MW / 924.1 MWh. We expect this to drive increased revenue and free cash flow to support dividend cover.”

Germany's Ministry of Economics and Climate is formulating a long-term strategy to achieve negative emissions, including substantial CO2 removal from the atmosphere. In a draft document set to be presented later this year, the ministry underscores the need for a strategy beyond achieving the country's net-zero greenhouse gas emissions target by 2045. The draft highlights the urgency of continuous CO2 removal, given the depletion of the global CO2 budget to limit warming to 1.5°C by 2030, as indicated by the Intergovernmental Panel on Climate Change (IPCC).

While aiming for CO2 neutrality, the ministry acknowledges that residual emissions in sectors like industry and agriculture will persist under a net-zero strategy. Approximately 5% of greenhouse gases from 1990 levels, estimated at 63 million tonnes of CO2 equivalent annually, must be removed. The draft proposes using direct air carbon capture, utilization, and storage (DACCU/S), along with traditional methods like enhanced natural carbon sinks, soil management, biomass production, marine biomass, and waste carbon capture, utilization, and storage.

The negative emission strategy is expected to establish interim targets for technical carbon sinks in Germany's climate law for 2035, 2040, and 2045. However, uncertainties arise regarding the feasibility of direct air capture technologies, as they require storage solutions similar to traditional carbon capture and storage (CCS), a concept Germany has previously abstained from on land.

The government's push for CCS offshore faced resistance, with concerns raised about financing infrastructure with tax money amid competing priorities for climate protection measures. Germany is aligning its approach with other countries like Denmark, targeting a 110% emission reduction by 2050, the UK with plans for technical removal of 5 million tons of CO2 per year from 2030, and the US promoting CO2 removal through initiatives like the 'carbon negative shot'.

The EU is also expected to clarify the role of negative emissions in its climate target determination for 2040. The German government aims to present a comprehensive evaluation of negative emission methods, along with proposals for monitoring, certification, economic incentives, and integration into the EU's emission trading system.

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Overview

Gen2 Carbon is a UK-based company specializing in the recycling and reuse of carbon fiber composites. Leveraging cutting-edge technology, the company is committed to sustainable practices by transforming end-of-life carbon fiber waste into high-quality, reusable materials. This process not only reduces environmental impact but also provides cost-effective solutions for industries that utilize carbon fiber.

Mission

Gen2 Carbon aims to lead the way in sustainable carbon fiber solutions. Their mission is to provide innovative recycling methods that minimize carbon footprint while delivering superior quality materials to their clients. They strive to create a circular economy for carbon fiber, ensuring that valuable resources are efficiently reused rather than discarded.

Industries Served

• Renewable Energy: Gen2’s recycled carbon fiber can be used in a wide range of applications in the renewables sector including the manufacture of wind turbine blades.
• Automotive: Providing lightweight and strong materials for vehicle components.
• Aerospace: Supplying high-performance fibers for aircraft manufacturing and maintenance.
• Construction: Offering sustainable materials for building and infrastructure projects.

Gen2 Carbon’s Solution for the Renewable Energy Sector

Gen2 Carbon has experienced a recent surge in orders from wind farm companies. Their recycled carbon fiber materials are versatile and can be applied across a wide range of renewables sector applications. These materials offer a combination of suitable mechanical properties along with beneficial thermal and electrical characteristics, enabling the customization of structures to meet the diverse requirements commonly found in applications such as wind turbine generator nacelles and the aerodynamic surfaces of wind turbine generator blades.

The Challenge of Recycling Wind Turbine Blades

While about 90% of wind turbines are easily recyclable, their blades are not. These blades are made from fiberglass bound together with epoxy resin, a material so strong that it is incredibly difficult and expensive to break down. Consequently, most blades end their lives in landfills or are incinerated.

To find out more about Gen2 click here.

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The Net Zero Industry Act (NZIA), formally adopted on 28th May 2024, aims to redirect EU funding and ease permitting delays, providing confidence to EU storage developers.

Integral to NZIA’s efforts are Net-Zero Strategic Projects; These initiatives strive to bolster the resilience and autonomy of the EU’s net-zero industry with prioroty status given at a national level to facilitate the execution of these projects.

To remove potential hurdles in the path towards climate neutrality, the NZIA simplifies the permitting processes. Member States are required to establish ‘one-stop shops’ for permit granting with clear, binding time limits.

The NZIA targets to manufacture at least 40% of the annual deployment needs for net-zero technologies within the EU by 2030. This includes various technologies such as solar panels, wind turbines, heat pumps, batteries, long duration energy storage (LDES), electrolyzers, and nuclear technologies. By simplifying the regulatory framework and offering investment incentives, the Act is poised to enhance the competitiveness of the EU’s net-zero technology industry.

Commission president Ursula von der Leyen welcomed the act, saying it created a regulatory environment conducive to the rapid scale-up of domestic projects. “The Act creates the best conditions for those sectors that are crucial for us to reach net-zero by 2050,” said von der Leyen, who is running for a second turn as the EU executive's senior politician. “Demand is growing in Europe and globally, and we are now equipped to meet more of this demand with European supply.”.

Following a major breakthrough in the field of research and development of the Compressed Air Energy Storage (CAES) system in China, the country is set to build 54 CAES projects. This pioneering achievement was independently developed by the Institute of Engineering Thermophysics of Chinese Academy of Sciences (IET) and Zhong-Chu-Guo-Neng Co. Ltd. 

CAES is a promising large-scale energy storage solution with distinct merits of large-scale, cost-effectiveness, high efficiency, and eco-friendliness. The successful integration test of a 300MW compressed air expander marks a significant milestone in domestic compressed air energy storage.

The scale-enlargement of CAES systems constitutes an important way to reduce cost, improve efficiency, and enhance market competitiveness. Compared with the 100MW advanced CAES system, the forthcoming 300MW system will achieve a threefold amplification in scale, a notable 20%-30% reduction in unit cost, and a marked 3-5% enhancement in overall efficiency.

This accomplishment underscores China's commitment to innovative energy solutions and signifies a crucial step forward in the evolution of advanced compressed air energy storage technology. The successful completion of the integration test and subsequent deployment of the 300MW advanced CAES system expander marks significant progress in the national demonstration project of the world-first 300MW advanced CAES system development.

The accomplishments described above have received robust support from the National Natural Science Foundation of China, the strategic pilot project of the Chinese Academy of Sciences, and the national key research and development programs.

Chevron has revealed its intentions to establish an inaugural green hydrogen facility at the Lost Hills oil field in Kern County, southern California. Set to commence operations by early 2026, the project will leverage power from an existing 29MW solar plant, estimated to meet 80% of the oil field's annual energy needs. The 5MW electrolyser is anticipated to generate up to 2.2 tonnes of hydrogen daily. Chevron plans to utilise "non-potable" water, a by-product from its oil field operations, as a feedstock for green hydrogen production, despite being non-drinkable.

The Lost Hills initiative aims to supply hydrogen for a refuelling network in California. Chevron had previously partnered with Japanese firm Iwatani in 2022 to co-develop 30 hydrogen filling stations across the state by 2026. However, a legal dispute between Iwatani and technology supplier Nel has arisen, claiming that six stations were too defective to operate or start up, despite four being listed as operational on Iwatani's website.

While fellow oil major Shell has exited the market for supplying hydrogen fuel to light-duty passenger vehicles in California, Chevron emphasises that launching the 5MW Lost Hills electrolyser hinges on various factors, including flexible and supportive policies and regulations at both federal and state levels.

The startup considerations may be related to the final guidance for the 45V clean hydrogen production tax credit, providing $3 per kilogram if carbon intensity does not exceed 0.45kgCO2e/kgH2. Draft rules released by the Treasury in December outline criteria for zero-carbon power supply from new assets within three years of the hydrogen facility and hourly matching of electricity used by electrolysers with renewable energy from 2028.

Environmental groups and analysts argue that these rules are essential safeguards, preventing zero-carbon electricity from being replaced by fossil-fired power generation. However, industry voices contend that these regulations could inflate the cost of green hydrogen, making it challenging for the 45V tax credit to bridge the cost gap with fossil-fuel-derived grey hydrogen or diesel.

At the state level, California mandates a third of hydrogen supplied to subsidised refuelling stations to be renewable. Despite a recent legislative attempt to establish additional requirements for legal compliance, the bill did not progress beyond early February.

While the Lost Hills project represents Chevron's first independent foray into electrolyser development, the company has previously acquired a majority stake in the ACES Delta project in Utah, featuring a 220MW facility with salt-cavern storage for 11,000 tonnes of hydrogen. Additionally, Chevron owns half of a waste-to-hydrogen facility set to be constructed in northern California this year, intending to supply refuelling stations in the state.

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Britain’s gas supplies have dropped to critically low levels, with less than a week’s worth of storage remaining, according to Centrica, the owner of British Gas. The combination of plunging temperatures and high demand has placed immense pressure on the country’s energy reserves this winter.

A Centrica spokesperson highlighted the challenges, stating: “The ongoing colder-than-usual conditions in the UK, combined with the end of Russian gas pipeline supplies through Ukraine on December 31, 2024, have significantly reduced gas inventory levels across the UK.” As of January 9, 2025, the UK’s gas storage sites are 26% lower than last year’s inventory at the same time, leaving them approximately half full. This equates to less than a week’s worth of gas demand in reserve.

In response, a No. 10 spokesperson reassured the public: “We are confident we will have sufficient gas supply and electricity capacity to meet demand this winter, thanks to our diverse and resilient energy system. We are in regular communication with the national energy system operator to monitor energy security and ensure they have the necessary tools to secure supply if needed.”

Low gas supplies are not unique to the UK, as European storage is also under strain. Current European storage levels are at 69% capacity, down from 84% at the same time last year. However, the UK has faced additional challenges due to its relatively small storage capacity, which is about 10% of that in France, Germany, or the Netherlands.

Centrica’s Rough facility, the largest gas storage site in the UK, has experienced a 20% drop in gas levels compared to the same period last year. Located under the North Sea off England’s east coast, Rough’s limited capacity has further exposed the UK to the effects of fluctuating supply and demand.

European gas prices have surged to a 13-month high, driven by colder weather and intensified global competition for liquefied natural gas (LNG). The UK’s reliance on LNG has grown since the start of the Ukraine war, exacerbated by the expiration of the Russia-Ukraine transit deal on January 1, which had allowed Russian gas to flow to parts of Europe.

Chris O’Shea, Centrica’s chief executive, underscored the importance of energy storage: “Energy storage ensures homes stay warm and the lights stay on when renewable sources like solar and wind are unavailable. Investing in storage capacity is an economically sensible decision and a crucial insurance policy for the UK.”

He continued: “The UK is an outlier in Europe regarding the role of storage in its energy system, and we are now witnessing the consequences of that. If Rough had been operating at full capacity in recent years, UK households could have saved £100 on both their gas and electricity bills each winter.”

O’Shea also called for government support to upgrade and expand Rough’s capacity. “We are ready to invest £2 billion of our own funds to redevelop the Rough gas storage facility, but this requires the cap-and-floor model recently announced for long-duration energy storage to be extended to Rough. With this support, we can create thousands of new construction jobs and safeguard a critical national asset. Without it, UK consumers will continue to face unnecessarily high energy bills.”

Construction has commenced on Australia's largest battery project to date, boasting a storage capacity equivalent to the combined fleet of projects under construction throughout the country by the end of 2022. The government of Western Australia (WA) announced recently, on March 15th, that the construction phase has officially commenced in Collie. This battery energy storage system (BESS) project will feature a 500MW output to the grid and a substantial 2,000MWh energy storage capacity.

Funded by the state government, the project is part of WA's commitment to bolstering storage capabilities for times when variable renewable energy (VRE) sources, such as solar PV and wind, are not generating power. It also aims to aid in managing peak loads and grid congestion.

This project is integrated into the expanding portfolio of state-owned energy generator-retailer (‘gentailer’) Synergy. The company aims to deploy 3GWh of energy storage from batteries by 2025. With the Collie BESS scheduled for completion by the end of that year, Synergy is well on its way to achieving this target. Construction on Kwinana 2, a 200MW/800MWh BESS project, began in mid-2023, complementing Kwinana 1 (100MW/400MWh), which was completed in May of the previous year.

Jodie Hanns, Member of the Legislative Assembly (MLA) for the local Collie-Preston electoral district, emphasized the significance of constructing Australia's largest battery in Collie, marking a significant milestone in the energy transition. The Collie region holds historical importance in WA's energy system, housing many of its large-scale thermal generation plants, including a Synergy-owned coal power plant at Collie itself, scheduled for decommissioning in 2027.

Highlighting the site's importance further is the proposed development by privately-owned French independent power producer (IPP) Neoen of another large-scale BESS in Collie. Neoen plans to initially size its asset at 200MW/800MWh, with potential expansion to 1GW/4GWh. Synergy has also expressed interest in expanding the Collie project to 1GW/4GWh, given favorable market conditions.

WA Minister for Energy Reece Whitby highlighted that the battery project will benefit local workers and families as Collie transitions away from thermal generation. Planning approval for the Collie BESS was granted in December, following a government announcement in September that Chinese battery maker CATL would supply the BESS for both it and Kwinana 2, with Spain-headquartered Power Electronics providing power conversion system (PCS) equipment to the projects.

Several battery energy storage systems (BESS) played a critical role in stabilizing the energy grid after the NSL interconnector, which connects the UK and Norway, abruptly stopped exporting power to the UK at around 8:47 AM.

Norwegian power exports plunged from 1.4GW to zero, causing the network frequency to drop as low as 49.59Hz within two seconds, significantly below the National Energy System Operator's (NESO) operational range of 49.8–50.2Hz. Thanks to rapid frequency response services, particularly BESS operations, the system was able to recover within two minutes.

Roger Hollies, CTO of Arenko Group, shared on LinkedIn that 1.5GW of batteries across NESO’s network supplied power during the disruption, including 12 batteries managed by Arenko’s Nimbus platform. According to BESSAnalytics.com, Arenko optimizes approximately 333MW of BESS assets in the UK.

Hollies emphasized the importance of BESS in responding to grid disruptions, noting: “It’s exciting to see batteries seamlessly keeping the lights on while engaging in diverse activities to maximize revenue. During this 50-minute window, these 12 batteries participated in nine different markets and services. This complexity will only grow as Quick Reserve goes live and local markets expand with more renewables.

Similarly, Kraken, a subsidiary of Octopus Energy, saw its BESS assets respond to the grid imbalance caused by the interconnector failure. In a LinkedIn post, Charlotte Johnson, Kraken's global director of markets, reported that BESS units contracted for frequency services delivered over 450MW of response—equivalent to about a third of the power lost during the interconnector failure.

Statkraft also helped stabilise the grid following a separate failure of the Moyle interconnector, which was transferring 442MW of power from Great Britain to Ireland on the same day that the UK’s last coal plant was permanently closed.

In a statement, Statkraft noted that batteries on both sides of the interconnector reacted within fractions of a second to stabilise the grids in Britain and Ireland. As the Irish grid frequency dipped to 49.7Hz, the 26MW Kelwin Battery project in County Kerry, Ireland, began exporting power, while the Scottish Greener Grid Park started importing additional power to balance the systems.

Jason Hill, head electrical engineer for grid services at Statkraft, said: “This event demonstrates how Statkraft’s innovative projects in both Great Britain and Ireland are vital to maintaining stable electricity networks, preventing supply disruptions. As we transition to a zero-carbon grid, technologies like these will be key components of the infrastructure.”