Ofgem Advances 77 Long Duration Energy Storage Projects in UK Cap-and-Floor Scheme

Ofgem has advanced 77 projects to the final assessment stage of the UK government's Long Duration Electricity Storage (LDES) cap-and-floor support scheme, selected from 171 applications. The scheme aims to boost Britain's capability to store renewable energy for eight hours or more, using technologies such as pumped storage hydro, lithium-ion batteries, flow batteries, and emerging methods like compressed air storage. LDES helps balance the grid by storing surplus renewable power during peak generation and releasing it during periods of low output, thereby reducing reliance on fossil fuels and cutting costs associated with curtailment and fossil fuel backup. The cap-and-floor mechanism ensures minimum revenue guarantees for investors while capping excess returns to protect consumers. This initiative is seen as vital for expanding renewable energy use, enhancing grid flexibility and resilience, and fostering a domestic energy storage industry after decades without new long-duration storage projects. Officials emphasize that scaling up LDES will help Britain end its dependence on volatile fossil fuel markets and maximize homegrown clean energy production.