The UK energy regulator Ofgem has confirmed details of the Long Duration Electricity Storage (LDES) cap and floor scheme, following a consultation period launched in October 2024. The design of the scheme will be split into 2 application routes, with one focusing on mature technologies and another dedicated to new innovation. It sets a minimum capacity of 100 MW (for stream 1 technologies, with a technology readiness level (TRL) of 9) or 50 MW (for stream 2 technologies with a technology readiness level (TRL) of 8) and a duration of 8 hours. The indicative capacity range for the first application window is between 2.7 and 7.7 GW (21.6 to 61.6 GW) up to 2035.
The ‘cap and floor’ scheme aims to encourage LDES investment, such as pumped-storage hydro, to store the surplus renewable energy produced to enhance energy security. Other technologies, such as liquid air energy storage, compressed air energy storage and flow batteries will also be included in the scheme. Ofgem will act as the regulator and delivery body on the scheme’s first round, expected to open in April 2025.
Great Britain currently has 2.8 GW of LDES across 4 existing pumped-storage hydro schemes in Scotland and Wales. The country considers necessary to develop between 12 GW and 15 GW LDES capacity by 2050 to achieve net zero.
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