RCS - Invinity Energy Sys - UK Government Confirms LDES Cap & Floor Scheme

Invinity Energy SystemsAnnouncement

10/10/2024 14:30

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RNS Number : 7528H  Invinity Energy Systems PLC  10 October 2024

 

10 October 2024

Invinity Energy Systems plc

 

("Invinity" or the "Company")

 

UK Government Confirms LDES Cap & Floor Scheme

Long Duration Energy Storage investment support scheme will boost investor
confidence and could unlock billions in funding for UK LDES projects

 

Invinity Energy Systems plc (AIM: IES) (AQSE: IES) (OTCQX: IESVF), a leading
global manufacturer of utility-grade energy storage, warmly welcomes the UK
Government's confirmation of a cap and floor regime as the investment
framework for new large-scale, long-duration electricity storage projects
which was announced this morning. The UK Government press release can be read
here
(https://www.gov.uk/government/news/new-scheme-to-attract-investment-in-renewable-energy-storage)
and the outcome of the consultation here
(https://www.gov.uk/government/consultations/long-duration-electricity-storage-proposals-to-enable-investment)
.

 

The Long Duration Electricity Storage investment support scheme will see a
"cap and floor" mechanism guaranteeing a minimum income for investors
deploying large scale, long duration energy storage ("LDES") technologies,
including vanadium flow batteries, onto the UK grid. The move aims to boost
investor confidence and could unlock billions in funding for projects using
vanadium flow batteries and other types of LDES.

 

The Company views today's announcement very positively, especially the
Government's assertion that this news should be seen as a "green light" for
the next generation of LDES projects in the UK, with flow batteries
specifically mentioned as a qualifying technology. Under current proposals,
the scheme envisages a minimum project size of 300 MWh which represents
support for a material increase in opportunity size for the Company in the UK
market. The Company also notes the Government's objective to support GB
businesses, like Invinity, through the scheme and unlock investment in green
jobs and opportunities as a result.

 

This announcement sees the Government appointing Ofgem as the scheme's
regulator and delivery body. A technical decision document addressing any
outstanding questions and outlining the final detailed structure of the scheme
will be published "this winter" with the first round of the scheme expected to
be open to applications next year.

 

 

Jonathan Marren, Chief Executive Officer at Invinity said:

 

"We are delighted to see the announcement this morning from DESNZ. This is a
very important step forward in paving the way for LDES technologies to make a
large and meaningful impact on our national grid and confirms the Company's
optimistic view on future policy support for Invinity's products in the UK
market.

 

We look forward to continuing our regular engagement with DESNZ as well as
Ofgem and other key stakeholders as the scheme moves through the remaining
steps of the process. The support for LDES embodied in this scheme is most
welcome and we look forward to our products playing an even greater role in
supporting energy security, faster decarbonisation and lower costs for
consumers in the UK."

 

 

Stay up to date with news from Invinity. Join the distribution list for the
Company's monthly investor newsletter here
(https://invinity.com/newsletter/?utm_source=iesrns) .

 

Enquiries:

 

 Invinity Energy Systems plc                                          +44 (0)20 4551 0361
 Jonathan Marren, Chief Executive Officer

 Joe Worthington, Director of Communications and Investor Relations

 Tavistock (Financial PR Advisor)                                     +44 (0)20 7920 3150
 Simon Hudson / Saskia Sizen / Adam Baynes                            invinity@tavistock.co.uk (mailto:invinity@tavistock.co.uk)

 

Notes to Editors

 

Invinity Energy Systems plc (AIM: IES) (AQSE: IES) (OTCQX: IESVF) manufactures
vanadium flow batteries for large-scale, high-throughput energy storage
requirements of business, industry and electrical networks.

 

Invinity's factory-built flow batteries run continually with no degradation
for over 25 years, making them suitable for the most demanding applications in
renewable energy production. Energy storage systems based on Invinity's
batteries are safe, reliable, and economical, and range in size from less than
250 kilowatt-hours to tens of megawatt-hours.

 

Invinity was created in April 2020 through the merger of two flow battery
industry leaders: redT energy plc and Avalon Battery Corporation. With 75 MWh
of systems already deployed or contracted for delivery across 82 sites in 15
countries, Invinity is active in all major global energy storage markets and
has operations in the UK, Canada, USA, China and Australia. Invinity Energy
Systems plc is quoted in the UK on AIM and AQSE and trades in the USA on
OTCQX.

 

To find out more, visit invinity.com (https://invinity.com/?utm_source=rns) ,
sign up to our monthly Investor Newsletter here
(https://invinity.com/newsletter/?utm_source=iesrns) or contact Investor
Relations on via +44 (0)20 4551 0361 or ir@invinity.com
(mailto:ir@invinity.com) .

 

 

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