What is the purpose of Ofgem's cap-and-floor scheme for the 16 long-duration energy storage projects?

Ofgem's cap-and-floor scheme provides developers with a guaranteed minimum income while limiting how much profit they can keep, aiming to strengthen domestic power supply and lower power system costs.

Why are long-duration energy storage systems considered important for Britain's energy grid, according to the news?

Long-duration storage systems hold and release electricity for eight hours or more, helping balance unpredictable wind and solar power, reducing pressure on transmission and distribution networks, and minimising the need for more expensive infrastructure.

UK's Ofgem Advances 16 Long-Duration Energy Storage Projects

Jun 25, 2026

Ofgem has provisionally selected 16 long-duration energy storage projects under a cap-and-floor scheme to strengthen domestic power supply and lower costs. The move aims to balance renewable energy integration and reduce reliance on volatile fossil fuel prices.

reuters

2026-06-25

UK's Ofgem Advances 16 Long-Duration Energy Storage Projects

UK's Ofgem Advances 16 Long-Duration Energy Storage Projects

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