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16 Apr 2025
Joe BushJoe Bush

Long-duration energy storage cap and floor scheme: applications open

On 8th April, Ofgem opened applications for window 1 of the long-duration electricity storage cap and floor scheme. Further application guidance has also been released, along with a framework for the eligibility assessment.

This builds on the Technical Decision Document released in March, which outlined Ofgem’s preferred approach for the cap and floor scheme.

For subscribers to Modo Energy’s research, this article will cover:

  • The key details of the scheme and its application timelines
  • How the decisions made by Ofgem impact lithium BESS, including the increased duration requirement
  • What the cap and floor levels could be for BESS

The cap and floor scheme aims to bring up to 7.7 GW of long-duration storage online

No new long-duration storage has come online in Great Britain since 1984. In the absence of government support, no lithium BESS with a duration above six hours comes online commercially in Modo Energy’s central forecast scenario.

Beyond six hours of duration, the incremental revenue from adding extra energy capacity . Adding extra duration reduces overall project returns.

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