Regen and the Electricity Storage Network have responded to Ofgem’s open letter and call for input on the proposed design and implementation of the Long Duration Electricity Storage cap and floor scheme.
Our response to Ofgem’s call for input on the Long Duration Energy Storage (LDES) cap and floor scheme follows a previous response to DESNZ in March 2024 and our report in partnership with LCP Delta for the government, which has informed policy.
The key messages in our response include that Ofgem should:
- Provide some flexibility for planning given the challenges in the planning system and align with ongoing grid connection reform timeframes (updated offers due by the end of 2025).
- Set an eight-hour duration eligibility criteria for the LDES cap and floor scheme, an overall target, and pots of requirements that align with system needs. This could ensure some alignment between Clean Power 2030 requirements and the capacities and durations being procured through the allocation windows of the LDES cap and floor scheme.
- Confirm at the earliest opportunity that the cap and floor scheme is technology agnostic, and to clarify definitions of novel iterations of Li-Ion battery storage in Stream 1 applications.
This is a strategic policy area for ESN that we track in the Innovation and Technology working group – book here for the next online meeting on 25 February. To talk to us more about our wider work and engagement around LDES, please contact Ray Arrell.