Ofgem has confirmed that 77 long-duration electricity storage projects will advance to the final assessment stage of its new cap-and-floor support scheme. This initiative aims to attract multi-billion-pound investments in technologies that can store excess renewable energy and deploy it during peak demand, thereby reducing the need to curtail wind generation or activate gas plants.
The projects moving forward encompass a variety of storage solutions, including lithium-ion and flow batteries, as well as pumped hydro. Ofgem emphasized that this diversity is crucial for building a secure, efficient, and flexible power system. Beatrice Filkin, director of major projects infrastructure at Ofgem, stated, “Renewable power is the key to seizing control of our own energy system and ending the costly reliance on the turbulent wholesale gas market, so we don’t want to see a single watt go to waste. Through Ofgem’s cap and floor process, we are beginning to identify the projects that we think are best placed to capture and make the most of our precious natural resources.”
Energy minister Michael Shanks added, “This is another huge step forward in reversing the legacy that has seen no new long-duration storage built for 40 years—a technology that will see Britain take back control of its energy supply and protect billpayers for good.”
Ofgem launched the scheme in April, and from the initial 171 applications, 77 projects remain in contention. Successful projects will be announced in summer 2026 following detailed final assessments.
This development could significantly reshape the energy sector by accelerating the deployment of long-duration storage technologies, which are essential for integrating higher levels of renewable energy into the grid. The diversity of projects suggests a recognition that no single technology will dominate, fostering innovation and competition. If successful, this scheme could set a precedent for other countries looking to enhance grid stability and reduce reliance on fossil fuels. However, the long timeline until final decisions are made in 2026 raises questions about how quickly these projects can be deployed in response to immediate energy challenges. The sector will be watching closely to see whether this initiative delivers on its promise of a more resilient and sustainable energy future.