Energy storage report urges major UK investment
27 January 2026
Tens of billions of pounds must be invested in long-duration energy storage if the UK is to meet its net zero targets and support the growing electricity demand from artificial intelligence, according to a new industry roadmap.
The Transition Finance Council says large-scale deployment of the technology will be essential to moving Britain’s power system away from fossil fuels while maintaining reliability. Long-duration energy storage refers to systems, including large batteries and pumped-hydro schemes, that can release electricity continuously for eight hours or more, allowing surplus renewable power to be stored and used when generation is low.
In a report published today, the council estimates that between £10bn and £15bn of investment will be needed by 2030, rising to a further £30bn to £60bn by 2050. The would need to support goals set out in existing government plans on clean power, infrastructure, industrial strategy and the expansion of AI data centres.
The roadmap argues that while some long-duration storage technologies are already in use, deployment remains limited and current market arrangements are not sufficient to attract the scale of private finance required. It says clearer revenue certainty for projects would help improve investor confidence and allow technologies to be developed at scale.
According to the council, wider adoption of long-duration storage could reduce overall electricity system costs by making better use of renewable generation and easing pressure on the grid. It also suggests new projects could support economic activity in parts of the country that have seen lower levels of investment in recent decades.
The report calls for closer coordination between government departments, regulators and the energy industry, alongside a greater role for institutional investors and insurers in assessing risks and financing projects. It also points to the National Wealth Fund as a potential source of public backing to help unlock private capital.
Chair of the Transition Finance Council, Lord Alok Sharma says:
“Developing long duration energy storage at scale is going to be vital in helping the UK transition to a decarbonised and stable energy supply system, enhance energy security, insulate our economy against energy supply shocks and ultimately help bring down electricity bills. This Long Duration Energy Storage Roadmap aims to set out a practical guide to mobilising the finance required to enable the scaling-up of this sector, as well as providing a framework for future financing roadmaps for other emerging technologies.”
