Britain is set to unlock billions in clean energy investment as Ofgem launches the first new support scheme for long-duration electricity storage (LDES) in 40 years.
The move aims to eliminate wasted renewable energy, stabilise the grid and accelerate progress towards net zero.
The new ‘cap and floor’ scheme removes barriers to large-scale investment in super-batteries and other storage technologies.
These LDES facilities act as backup for the grid—capturing excess electricity from wind and solar and releasing it when demand rises or output drops.
Technologies supported include pumped hydro storage, which uses renewable electricity to pump water uphill for later use, as well as emerging systems like flow batteries and liquid air energy storage.
“Renewable energy is the key to securing Britain’s energy independence and driving down customer bills in the long term – so it’s vital that none of this precious resource goes to waste,” said Akshay Kaul, Director General, Infrastructure at Ofgem.
By offering investors minimum revenue guarantees and limiting excessive profits, the cap and floor scheme mirrors a successful model already in place for interconnectors, which has returned £200 million to consumers.
The Government sees LDES as a cornerstone in its plan to decarbonise the power system by 2030 and reach net zero by 2050.
The scheme supports a target of 20GW of LDES by 2050, projected to save the system £24 billion and dramatically reduce reliance on expensive gas.
“This is a historic moment for the UK’s energy system,” said Kate Gilmartin, CEO of the British Hydropower Association. “PSH is a proven technology… and will strengthen grid stability, reduce curtailment and enable the transition to Net Zero.”
