Commenting on the publication of Ofgem's technical document, which outlines the design of a cap and floor' scheme for Long Duration Electricity Storage (LDES) projects, RenewableUK's Senior Policy Analyst Yonna Vitanova said:
"The introduction of a cap and floor mechanism for LDES is a critical means of catalysing investment in an underdeveloped area and supporting the UK's ambitions for a clean power system by 2030. No new LDES technology has reached commercial deployment in the UK in the last 40 years, so today's confirmation of the design of the cap and floor scheme brings welcome clarity to industry and investors alike.
"The indicative capacity range of between 2.7 and 7.7 GW up to 2035 is a welcome ambition, whilst the accelerated timeline to award projects with a 25-year cap and floor regime in Q2 2026 brings much needed certainty. The LDES cap and floor approach acknowledges the unique risks LDES projects are exposed to when compared to interconnectors, and lays out the building blocks to unlock much needed deployment of electricity storage over the next decade."
Notes:
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Sam Sheppard, Senior Communications and Campaigns Manager
07738 493 827 | Sam.Sheppard@RenewableUK.com
