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Britain approves battery and hydropower storage amid heatwave strain

Financial Times Companies •
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Britain's energy regulator has granted provisional approval to a slate of battery storage and hydropower projects as a sweltering heatwave pushes gas‑fired and solar output to record lows. Utilities expect the storage to defer costly transmission upgrades and cut emergency imports, bolstering grid resilience during peak cooling demand.

The approved schemes total roughly 1.5 gigawatts of capacity, enough to supply tens of thousands of homes during peak periods. Investors view the projects as a hedge against volatility, while grid operators anticipate rapid response through smart‑grid interfaces that allow rapid dispatch during price spikes. The approvals follow months of industry lobbying for clearer policy signals.

By clearing the projects, Britain signals a shift toward ancillary services that can balance intermittent renewables without relying on fossil fuels. Success would bolster calls for more incentives, and analysts see the decision as a practical step to preserve reliability as the country pursues net‑zero targets.