Industrial Strategy targets energy innovation, while Scotland ups renewables target

While the main energy focus of the government’s new Industrial Strategy Green Paper was on the affordability aspect of the three-legged energy ‘trilemma’ – that also stands on security and environmental acceptability legs – there was also room for targeting funding towards innovation. Three technology areas – smart systems, industrial energy efficiency and offshore wind – are to benefit from £28mn of government funding.

The Industrial Strategy Green Paper says that more needs to be done to commercialise world-class ideas and discoveries made in Britain, and put UK companies at the forefront of innovation.

Up to £9mn will be spent on a competition to reduce the cost of energy storage, including electricity, thermal, and power-to-gas storage; and up to £600,000 will be allocated to feasibility studies for projects that can store energy on a large scale, for use when it’s needed, said the Department for Business, Energy & industrial Strategy (BEIS).

In addition, up to £7.6mn will be available for advancing energy demand-side response technologies that can help both private and public sector organisations reduce energy use in peak times. Last, to reduce the cost of energy for industry, the government will invest around £9mn in a competition for an ‘industrial energy efficiency accelerator’.

This competition will help to find new ways of improving the energy efficiency of UK industry, helping to develop industry-specific options for a low carbon future, added BEIS.

The funding is a welcome injection of capital and will support the UK’s rapidly growing energy storage industry’s ambitions to become world-leading, said the Renewable Energy Association (REA). However, while it will support growth, major policy barriers are slowing the actual deployment of grid-scale and behind-the-meter energy storage products in the UK; addressing these in a timely manner will ultimately lead to more storage deployment, added the REA.

Meanwhile, the Scottish government is pondering an ambitious new target to deliver the equivalent of 50% of the energy required for Scotland’s heat, transport and electricity needs from renewable sources by 2030.

Following publication last week of the draft Scottish Energy Strategy, the Scottish government will announce in February details of up to £50mn in funding to be awarded to 13 projects, at sites across Scotland, to demonstrate low carbon or renewable electricity, heating or storage solutions.

As well as setting new targets, the draft strategy also seeks views on issues including:

• the future of onshore wind development in Scotland – setting an ambition to make Scotland the first area in the UK to host subsidy-free onshore wind;
• innovation in offshore wind, including floating turbines;
• the importance of security of supply, grid investment and the role for large-scale storage, such as pumped hydro storage;
•  the development and use of emerging energy sources and technologies, like hydrogen, for the provision of transport; and
• the potential role for renewable energy bonds.

Industry association Scottish Renewables welcomed the plan. Jenny Hogan, Director of Policy, said: ‘The new draft strategy shows that Scotland is serious about building on the fantastic progress made in renewable power over the past decade and maintaining our position as a global leader in green energy. While ambitious, the target is achievable but absolutely depends on the right support from both the UK and Scottish governments.’