Long duration electricity storage: proposals to enable investment
Read the full outcome
Detail of outcome
This response confirms the government’s intention to create a cap and floor scheme to unlock investment for Long Duration Electricity Storage (LDES) projects, our preferred policy approach.
Ofgem has agreed to act as the regulator for LDES, which encompasses the role as the investment framework delivery body, as well as setting out some high-level decision on the scale and scope of the scheme.
We will continue to work with Ofgem, the National Electricity System Operator and industry to further develop these positions, and will publish details of the scheme in due course.
Detail of feedback received
We received 113 responses from a range of stakeholders, including;
- developers
- trade associations
- asset owners
- academics
- investors
- technology
The responses were mostly supportive of a cap and floor mechanism for LDES and provided helpful information to guide our thinking in reaching the positions set out in the government response.
Original consultation
Consultation description
Long duration electricity storage can provide an important contribution to decarbonising our energy system. For example, it can store renewable power and discharge it during periods of low wind. However, evidence suggests that it faces investment challenges under current energy market frameworks, meaning it has struggled to deploy at scale at present.
This consultation sets out our intention to develop a cap and floor mechanism to overcome the investment barriers we have identified. The consultation seeks views on several elements of our approach, including eligibility criteria for assessing applications, the design of the cap and floor mechanism and our proposed options for delivering the scheme.
It’s open to anyone to respond, but will be of interest primarily to:
- long duration storage project developers
- investors
- electricity suppliers
- network operators
- relevant technology companies
- consumer groups
- other stakeholders
We’ve published a study on scenario deployment analysis for long-duration electricity storage alongside this consultation.
Read our consultation privacy notice.
Documents
Updates to this page
Published 9 January 2024Last updated 10 October 2024 + show all updates
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Government response published.
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First published.