Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, whether her department has modelled the potential impact of accelerated grid-scale storage deployment on (a) the proportion of hours in which gas sets the wholesale electricity price, (b) wholesale electricity prices for energy-intensive manufacturers, and (c) the long-term cost of the British Industrial Competitiveness Scheme.

Electricity storage can reduce peak wholesale prices, by storing cheap renewable energy and acting as an alternative to gas when power is most needed. Analysis by LCP Delta and Regen, published by DESNZ and Regen in January 2024, demonstrates this effect specifically for long duration electricity storage (LDES). However, the Department has not conducted a specific quantification of this impact on either the proportion of hours in which gas sets the wholesale electricity price, the prices faced by energy-intensive manufacturers, or the long-term cost of the British Industrial Competitiveness Scheme.