Published date: 4 March 2021

Last edited date: 6 March 2021

This notice was replaced on 3 June 2021

This notice does not contain the most up-to-date information about this procurement. The most recent notice is:

Awarded contract (published 28 February 2022, last edited 9 March 2022)

Closed early engagement


Contract summary

Industry

  • Other sources of energy supplies and distribution - 65400000

Location of contract

United Kingdom

Procurement reference

TRN: 4907/03/2021T

Published date

4 March 2021

Closing date

12 March 2021

Contract is suitable for SMEs?

Yes

Contract is suitable for VCSEs?

Yes

Description

Net Zero Innovation Portfolio
The NZIP Energy Storage programme is intended to accelerate the commercialisation of novel energy storage technologies (i.e. non-lithium ion, pumped hydro and other commercialised storage solutions).
Innovation support will be administered through a series of open competitions. The first, on Longer Duration Storage, was announced on 3rd March 2021. Future competition details can be found on .gov.uk.
Longer Duration Storage Demonstration - Proposed Innovation Competition
The competition would focus on demonstrating first-of-a-kind (FOAK) novel longer duration storage technologies, through full-system prototypes or actual demonstrations.
The competition could encompass energy storage technologies that:
• could be deployed at scale,
• provide competitive flexibility services and system benefits for the electricity system,
• provide longer-duration storage capability (>4 hours, longer duration scoring higher).
We plan to launch 2 competition streams that focus on varying technology readiness levels (TRL), demonstrating novel longer duration storage facilities and progressing solutions by ~2 TRLs. This Contracts Finder publication refers solely to Stream 2 Small Business Research Initiative (SBRI) contracts (focussed on TRL4/5). Further information on Stream 1 Capital Grants (focussed on TRL6/7), can be found on .gov.uk.
Technologies
There will be 3 key technology areas across both streams: Power-to-X, Thermal, Electric.
All demonstrations would be expected to demonstrate flexibility services to and from the grid. Solutions with UK commercial deployments would be out of scope.
Stream 2: Prototype Demonstration
Technologies currently at TRL 4/5; aiming to demonstrate FOAK energy storage system prototypes in relevant or operational environments.
~£30m would be awarded through SBRI contracts, requiring risk-sharing. (SBRIs are not exclusive to small businesses). Delivery would be phased, with down-selection after Phase 1. A target minimum of 3 projects would be progressed to Phase 2.

Indicative Timeline Indicative available Funding (per project)
Phase 1: Feasibility Studies Sept' 21 - Dec' 21 Up to £50k
Phase 2: Build Jan' 22 - Mar' 24 Up to £9.45m

Expression of Interest
Please email your interest to smart.innovation@BEIS.gov.uk titling the email "NZIP Energy Storage". Include your company name and which stream and technology lot you would be interested in. This will ensure you are notified once further details are available.
We welcome comments on the proposed competition approach.
The expression of interest is for planning purposes only. Expressing interest does not advantage a supplier and failing to express interest does not preclude a supplier from applying to any future competition. This expression of interest notice will also be advertised on .gov.uk.
Please submit your interest by midnight Friday 12th March 2021.

More information

Links

Additional text

Treatment of Intellectual Property

Subject to the requirements of the standard Terms and Conditions, applicants would retain ownership of the intellectual property generated from the project. Applicants are required to identify and record any such intellectual property and to protect patentable knowledge in accordance with the standard terms and conditions. If within five years of its creation applicants have not commercially exploited intellectual property generated from the work, then in line with the standard terms and conditions, BEIS may request the Arising Intellectual Property be assigned to BEIS.

Limitation of liability
Except in relation to death or personal injury as referred to in the standard terms and conditions, liability of the funding recipient is limited to twice the total project costs; for Phase 2 this will be increased to £4m or twice the total project costs, whichever is greater.

Background Information
Net Zero Innovation Portfolio: Energy Storage and Flexibility Challenges

Made available through the £1bn Net Zero Innovation Portfolio, at least £100m is available to address Energy Storage and Flexibility innovation challenges, which is one of the NZIP's ten key priority areas.

A net zero energy system will need significant levels of energy storage and flexibility in order to integrate high volumes of low carbon power, heat, and transport. Without substantial advances in these technologies and deployment thereof, the UK may not be able to meet its Net Zero ambitions, or not in the most cost-effective way.

Energy Storage
Energy storage is expected to be one of the key components in a smarter, more flexible energy system which can maximise the use of intermittent and distributed renewable generation to secure a lower-cost, low carbon and secure energy system for the future.
Longer duration storage (across days, weeks, and months) could help reduce the cost of meeting net zero by storing excess low carbon generation for longer periods of time - helping to manage variation in generation, such as extended periods of low wind. This will reduce the amount of fossil fuel and low carbon generation that would otherwise be needed and optimise the output from renewables (rather than paying to turn off generators when there is excess supply).

As trailed in the Energy White Paper, the proposed NZIP competition is intended to accelerate commercialisation of innovative longer duration energy storage projects (e.g. excluding pumped hydro/lithium ion) at different technology readiness levels, through first-of-a-kind (FOAK) full-system prototypes or actual demonstrations.

We are considering simultaneously launching two competition streams that focus on varying technology readiness levels (TRL). Further information can be found on .gov.uk.

References
Full System: I.e. all previously tested system components are assembled (Los Alamos Nationa

About the buyer

Contact name

Smart Energy Innovation - Science and Innovation for Climate and Energy

Address

1 Victoria Street
London
SW1H0ET
England

Email

smart.innovation@BEIS.gov.uk