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<p>The Low Carbon Innovation Coordination Group's (LCICG) Strategic Framework, published
February 2014, notes that innovation in storage is important to realising the enabling
benefits of electricity storage technologies. In the Strategic Framework, the LCICG
concludes that successful innovation in electricity storage technologies could save
the UK energy system about £4.6billion by 2050. <br> <br> DECC is providing significant
innovation support for energy storage technologiesby funding 7 research and 4 large-scale
demonstration energy storage projects – with a total budget of about £18m.</p><p>DECC
also regards storage – along with demand side response (DSR) - as essential for a
better functioning electricity market and both play an important role in ensuring
security of supply. The Government is implementing measures to establish broader and
more flexible DSR and Storage sectors as part of the Electricity Market Reform programme.
Specifically, DECC will run two Capacity Market transitional auctions in 2015 and
2016, ahead of the Capacity Market's first full delivery year in 2018/19. These “transitional
arrangements” will help grow the demand side and sub-50MW storage industries and ensure
effective competition between traditional power plants and new forms of capacity,
driving down future costs for consumers. The Irish Single Electricity Market already
uses a capacity mechanism so the UK Government and Northern Ireland have agreed that
the Capacity Market will only apply across Great Britain with any associated costs
being borne by GB customers only.</p><p> </p>
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