Legislation – Planning and Infrastructure Act 2025

“Long duration electricity storage

10PLong duration electricity storage

(1)

The Authority must, as soon as reasonably practicable after this section comes into force, establish and operate a scheme in accordance with this section.

(2)

The scheme must be designed for the purpose of encouraging the development and use of long duration electricity storage installations.

(3)

The scheme must be open to persons who—

(a)

hold or intend to apply for a generation licence to operate a long duration electricity storage installation, and

(b)

meet any other specified criteria.

(4)

The scheme must provide for an LDES operator who operates an approved installation—

(a)

to receive payments from a holder of an electricity system operator licence where the operator’s assessed revenue from that installation is below a specified amount, in specified circumstances, and

(b)

to make payments to a holder of an electricity system operator licence where the operator’s assessed revenue from that installation is above a specified amount, in specified circumstances.

(5)

In subsection (4)—

“an approved installation” means a long duration electricity storage installation which is approved by the Authority for the purposes of subsection (4) in accordance with the scheme;

“assessed revenue”, in relation to a long duration electricity storage installation, means the difference between—

(a)

revenue of a specified kind earned or derived in connection with that installation, and

(b)

costs of a specified kind incurred in connection with operating the installation.

(6)

The Authority may determine how costs and revenue are to be calculated for the purposes of the scheme.

(7)

In setting charges to which Article 18(1) of the Electricity Regulation applies, the holder of an electricity system operator licence may take account of payments it makes or receives under the scheme.

(8)

In this section—

“LDES operator” means a person who, under a generation licence, generates electricity by means of a long duration electricity storage installation;

“long duration electricity storage installation” means an installation that—

(a)

generates electricity from stored energy,

(b)

has an electricity generating capacity of not less than 50 megawatts, and

(c)

is capable of generating electricity at its full capacity for a continuous period of not less than eight hours;

“specified” means specified by the Authority for the purposes of the scheme in—

(a)

a document published by the Authority, or

(b)

a condition of a licence;

“stored energy” has the meaning given by section 4(3ZB).

(9)

The Secretary of State may by regulations amend the definition of “long duration electricity storage installation” by substituting—

(a)

for the amount of electricity generating capacity for the time being mentioned in paragraph (b) of the definition, a different amount;

(b)

for the period for the time being mentioned in paragraph (c) of the definition, a different period (which may not be less than eight hours).”