UK Selects 16 Long-Duration Storage Projects in Inaugural LDES Tender

⚡ AI Executive Summary

Ofgem has provisionally awarded support to 16 long-duration energy storage (LDES) projects under the UK's inaugural cap-and-floor scheme, designed to de-risk investment by guaranteeing minimum revenue floors. Pumped hydro facilities lead the selection by capacity, while lithium-ion battery systems dominate by project count, with additional support for compressed air and flow battery technologies. The portfolio demonstrates a strategic geographic and technological diversity, with Scottish projects capturing the majority of capacity to address regional wind curtailment challenges. This tender outcome reflects the evolving role of LDES in decarbonized grids, where extended-duration storage (12+ hours) becomes critical infrastructure for managing renewable intermittency across seasonal and weather patterns. The selection of multiple technologies—rather than defaulting to lithium-ion alone—signals regulatory recognition that diverse storage architectures will be necessary as variable renewable penetration increases. Utilities and grid operators should monitor final determinations and emerging operational protocols, as these projects will establish baseline performance expectations and revenue models that shape future LDES deployment.