Published 9 January 2024
Last updated 10 October 2024 — See all updates
Read the full outcome
Designing a policy framework to
enable investment in long duration electricity storage:
government response
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 LDESand provided
helpful information to guide our thinking in reaching the
positions set out in the government response.
Original consultation Summary
We're consulting on the policy framework to enable investment in
long duration electricity storage.
This consultation ran from
9am on 9 January 2024 to 11:59pm on 5 March 2024
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
Designing a policy framework to
enable investment in long duration electricity
storage
