UK to invest £246m in research and development into energy storage

In a trading statement, the energy storage technology company said the move will provide a "welcome injection of funds" into the sector, through the Faraday Challenge, a coordinated programme of competitions, aimed at supporting world class research and innovation.

In addition to the Faraday Challenge, the new Smart Systems and Flexibility Plan will introduce several new measures designed to remove existing barriers to energy storage technology within British government policy framework, including a review of the existing electricity tariff structure, a move widely considered to further incentivise energy storage and flexibility within the UK.

The company sees the announcement as a "strong statement of intent" from the UK government and a key indicator that energy storage will "form a core part of UK industrial energy strategy moving forward."

Scott McGregor, chief executive officer of redT energy, commented: "at a time when the UK grid is under increasing pressure, due to large scale power projects being taken offline, and the country's energy security is being called into question, it is vital that industrial-scale energy storage machines are looked at as a serious low cost way to decarbonise the UK economy and support the grid."

He also noted the investment "has the potential to be the catalyst the UK renewables market needs to ensure greater adoption of energy storage technologies."

As of BST 1621 redT energy shares were up 4.84% to 8.13p