In total, Ofgem has green-lit 77 long-duration energy storage (LDES) projects. This approval allows these projects to move on to the evaluation stage of the government’s LDES cap and floor program. Taken by the government energy regulator, this announcement indicates a broader move to strengthen the UK’s energy storage infrastruktur tahap 1. The program deliberately steers investment toward particular technologies. For one, these technologies need to be able to store and discharge electricity over a long duration—at least eight hours.
Progress may be reversed by the cap and floor scheme started in April. Its key aim is to help accelerate the deployment of storage projects that complement and further the UK’s renewable energy goals. These 137 approved projects have a total potential discharge capacity of 28.7 gigawatts (GW). They exhibit a rich variety of storage technologies, including lithium-ion batteries, flow batteries, pumped hydro storage, liquid air energy storage, and compressed air storage.
Overview of Approved Projects
Ofgem ended up with 171 proposals, with a staggering total potential discharge capacity of 52.6 GW. Of the approved projects, 71 are considered ‘track 1’ projects and are anticipated to be delivered by 2030. 6 more ‘track 2’ projects are aiming at completion by 2033.
Specifically, Ofgem has approved the second and fourth of four submissions for liquid air energy storage plus battery energy storage system (LAES/BESS) hybrid projects. Cumulatively these projects represent an approved capacity of 0.4 GW. Additionally, every one of the 16 bids for zinc-vanadium hybrid flow batteries made it through to the final stage, adding up to 2.6 GW in total. Only five of the 20 vanadium flow battery projects went beyond the initial development stage. This halved the original proposed capacity, reducing it from 1.8 GW down to 0.9 GW.
Only five pumped hydro storage projects have been approved. Collectively, they’ll increase the total capacity by 4.6 GW. To be honest, the first submissions were all focused on lithium-ion battery energy storage systems. Just 112 proposed projects made up almost three-fourths of the total proposed capacity, totaling 38.6 GW. Only one in three compressed air energy storage projects will move forward, accounting for only 0.1 GW.
Future Developments in Energy Storage
Ofgem intends to publish a first indicative list of eligible projects in spring 2026. Final approvals are anticipated by early summer of that year. This timeline is very important. It underpins the government’s wider aims to improve energy resilience and sustainability across the UK.
UK Energy Minister Michael Shanks expressed optimism regarding the scheme’s progression:
“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.”
Shanks emphasized the potential impact of these advancements on the electricity supply in the country:
“By scaling this up, we can transform the way electricity is supplied in this country when demand is high – using stored up low-cost, homegrown solar and wind power to help end our reliance on costly fossil fuel markets once and for all.”
Implications for the Energy Sector
The success of these LDES projects is immensely important to the future of the UK’s energy system. By expanding the potential for grid-scale and locality-based energy storage, these efforts help ensure a cleaner and more dependable delivery of energy. They facilitate the integration of renewable energy sources, which is essential for meeting climate targets and reducing greenhouse gas emissions.