Ofgem Shortlists 16 Long-Duration Storage Projects in UK Debut

⚡ AI Executive Summary

The UK's energy regulator Ofgem has selected 16 long-duration energy storage (LDES) projects for its inaugural cap-and-floor support scheme, representing a combined capacity of 7.6 gigawatts with discharge durations spanning 8 to 22 hours. The shortlist includes lithium-ion battery systems alongside other storage technologies, marking a significant milestone in the regulatory framework for extended-duration grid support. This move reflects growing recognition that seasonal and multi-hour storage will become essential infrastructure as renewable penetration increases. The cap-and-floor mechanism—which guarantees revenue floors while capping windfall profits—aims to reduce investment risk and accelerate deployment of assets that grid operators need to balance variable wind and solar generation. Success here could establish a template for other markets grappling with the same storage gap, and signals that regulators are beginning to price the long-term value of storage duration rather than just power capacity.