Cap and floor: LDES watershed or critical battery barrier?

Is the LDES Cap and Floor scheme jeopardising the UK’s battery ambitions?

The Cap and Floor scheme for Long Duration Electricity Storage (LDES), introduced by the Department for Energy Security and Net Zero (DESNZ) and regulated by Ofgem, is designed to drive investment into storage technologies that can deliver electricity for 8 or more hours. It works by offering a minimum revenue guarantee (the floor) to protect against low returns, while placing an upper limit (the cap) to return excess profits to consumers. This …

Cap and floor: LDES watershed or critical battery barrier?

Image courtesy 123rf In this week’s Power Playbook: Britain’s storage landscape is set to see some changes, with the LDES cap and floor scheme receiving its first window for project applications. But BESS developers don’t seem happy. On 8 April, Britain’s energy regulator Ofgem announced the first window for the long duration energy storage (LDES) cap and floor scheme. While many have welcomed the mechanism since its initial announcement in Octo…