1、Long Duration Electricity StoragePresentation to Energy Storage Summit 2026What is Long Duration Electricity Storage(LDES)(in UK context)?Duration:8 hour minimum,balances system benefit with deliverability Capacity:100MW for mature technologies;50MW for less mature technologies Technology:any techno
2、logy that meets the LDES requirements is potentially in scope Systems that can store and release electricity for at least eight hours of continuous output at full power Government identified investment barriers and potential consumer benefits before deciding to launch the LDES scheme Revenue uncerta
3、intyHigh upfront capexLong build timesNo major LDES built in 40 years.Weak signals+high risk=underinvestmentDESNZ System modelling estimates:energy consumer saving,could be 24 billion by 2050 from 20 GW of LDESWhat is a Cap and Floor and how will it work?Ofgems role is to deliver the cap and floor s
4、cheme,in line with our statutory duties as the independent energy regulatorThe floor provides investment support-investors receive a minimum amount of revenue to enable investment in LDES assets.The cap on revenue provides returns to consumers where LDES assets operate above the cap.Hard floor(subje
5、ct to incentives)and soft cap,allowing for further(30%)revenue sharing above the cap level.Designed to incentivise continued operation if the cap is reached.Ofgem delivery plan for window one Dec 2024Call for Input on the LDES regimeMarch 2025Joint Ofgem/DESNZ technical decision document;Planning Bi
6、llApril 2025Open eligibility assessment for window one;publish frameworkMay/June 2025Consultation on Project Assessment(PA)and Financial Framework(FF)incl modelSept 2025Eligibility Decisionon FF and PASubmission period 18th NovKey developments so far:November 2025 Spring 2026Conduct Project Assessme