Funding mechanisms for large-scale energy storage: design notes for UK engineers
Reviewed by Joe Ashwell

First reported on New Civil Engineer
30 Second Briefing
Former Australian prime minister and International Hydropower Association president Malcolm Turnbull is urging the UK Government and Ofgem to create dedicated funding mechanisms to unlock investment in large-scale pumped energy storage schemes. He is targeting long-duration storage projects that can shift surplus offshore wind and solar over multi-hour to multi-day periods, rather than short-duration lithium-ion batteries. For civil and geotechnical teams, this signals potential demand for new high-head reservoirs, underground caverns, pressure tunnels and large-diameter penstocks if bankable revenue models are put in place.
Technical Brief
- Malcolm Turnbull is speaking in his capacity as president of the International Hydropower Association.
- Focus is on funding mechanisms, not planning reform, grid codes or environmental approvals.
Our Take
Where Policy coverage tagged as Sustainability has previously centred on carbon pricing and permitting, the emphasis here on large-scale storage suggests that project developers in Australia and the UK may increasingly hinge feasibility on access to bespoke state-backed revenue guarantees or concessional finance rather than traditional merchant models.
Given the International Hydropower Association’s role in global hydro standards, its engagement in this Policy debate is likely to strengthen the case for long-duration pumped storage being treated in regulation more like regulated network infrastructure than conventional generation, which would materially alter risk allocation for future projects.
Prepared by collating external sources, AI-assisted tools, and Geomechanics.io’s proprietary mining database, then reviewed for technical accuracy & edited by our geotechnical team.
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