New Government Funding Launched to Store Clean Energy for Longer and Protect Households from Price Spikes

20 August 2026

Launched today (Thursday 20th August), the Ultra-Long Duration Energy Storage (Ultra-LDES) Challenge will offer grants which support the development of new tech focused on energy storage, including advanced batteries and underground hydrogen storage.

Backed by £28 million from government through UK Research and Innovation, UK innovators can now bid for funding to develop projects capable of supplying clean electricity for 100 hours or more – enough to power our homes and businesses for at least four days.

The funding follows a UK Energy Research Centre report, commissioned by UKRI, that sought to answer key questions on which long duration electricity storage (LDES) and low carbon dispatchable power (LCDP) technologies can be delivered by 2030/2035 in the UK.

The Challenge will have two main areas of focus. The first will be on the development of new battery technologies capable of providing energy for over 100 hours. These electrochemical technologies are yet to be commercialised at scale, giving the UK an opportunity to secure an early foothold in the market which will deliver new opportunities for businesses and unlock new jobs.

The second will support the development and testing of systems which store hydrogen underground and release it when needed. It holds the potential to reduce total energy system costs by between £14 billion and £50 billion between 2035 and 2050.

Dr Jamie Speirs of the University of Strathclyde, Co-Director of UKERC and lead author of the report, said: “Achieving the UK’s low carbon ambitions will hinge not just on deploying record levels of renewable generation, but on unlocking Long Duration Energy Storage (LDES) to support a highly renewable electricity system. By providing flexibility across hours, days and even seasons, LDES could enable a resilient, low carbon electricity system – reducing curtailment, strengthening security of supply, and ensuring that intermittent renewables can maximise their contribution to the grid in all conditions. Investing in innovation opportunities such as this call to support market deployment of LDES technologies is a key way to support these technologies to market, giving us the best chance to meet our net zero targets.”

Professor Rob Gross, Director of UKERC, and Professor at Imperial College London, said: “Delivering a secure, affordable and decarbonised electricity system will require innovation across a range of technologies, and the development of significant new sources of flexibility. Our analysis helps inform options to accelerate deployment of Long Duration Energy Storage. Unlocking that potential will require targeted innovation to overcome technical, commercial and system integration challenges. This funding will support innovation in novel energy storage solutions, helping build the evidence base, capability and infrastructure required for clean power.”

This launch completes the roll out of the £102m Clean Energy challenges, which include the Ultra-LDES Challenge and the £74 million Consumer-led Flexibility Challenge. They will help fund new technologies that help shift electricity use when it’s cheapest, so the system runs more efficiently and bills come down. This is part of the existing R&D Missions Accelerator Programme (R&D MAP) which is investing at least £500m by 2030 into the research and development to tackle the major problems our society and economy face.