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<p>We recognise that electricity storage technologies, including pumped hydro storage,
provide an important source of flexibility to our energy system. We currently have
around 3GW of storage capacity on our system, of which the vast majority is pumped
hydro storage. The Electricity System Operator outlines that, by 2050, there could
be 12-29 GW of total storage capacity on our system.</p><p> </p><p>In our Smart Systems
and Flexibility Plan, published in July 2017 (and updated in October 2018), Government
and Ofgem set out a range of actions to remove barriers to electricity storage. Our
work seeks to enable fair access to energy markets in order to create a best in class
regulatory framework for the sector and includes several important reforms to our
electricity market, including to the balancing mechanism, capacity market and balancing
services, which serve to sharpen incentives to invest in storage.</p><p> </p><p>We
will continue to engage with storage developers, including those of pumped hydro projects,
to understand how to facilitate these technologies whilst ensuring best value for
consumers and fair competition between different flexibility technologies.</p>
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