Ofgem’s Clean Power Storage (LDES) Initiative
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Ofgem has launched a groundbreaking investment scheme for Long Duration Electricity Storage (LDES), marking one of the most significant developments in the UK energy storage sector in four decades.
The initiative aims to accelerate the deployment of large-scale energy storage technologies that can support renewable energy generation and improve grid stability. As the UK continues its transition to clean energy, LDES will play a crucial role in managing supply and demand across the electricity system.
Bridging the Renewable Energy Storage Gap
Renewable energy sources such as wind and solar have expanded rapidly across the UK. However, their intermittent nature can create challenges for electricity networks.
During periods of high wind or strong sunlight, renewable generation can exceed grid demand, resulting in wasted energy. Conversely, when renewable output drops, alternative energy sources must be used to maintain supply.
Despite the rapid growth of renewables, Britain has not developed new large-scale long duration energy storage infrastructure for around 40 years. This has created a significant gap in the country’s ability to store surplus renewable power.
According to Ofgem’s announcement, expanding energy
storage capacity will ensure that more renewable electricity can be stored and used when demand increases.
The Ofgem Cap and Floor Energy Storage Scheme
To address these challenges, Ofgem has introduced a cap and floor investment model for long duration electricity storage projects.
This system provides developers with a guaranteed minimum revenue level, helping offset the high upfront costs and long construction timelines associated with large-scale energy storage infrastructure.
At the same time, the scheme protects consumers by capping the maximum revenues developers can earn. If profits exceed the cap, the excess revenue is returned to electricity customers through lower bills.
To qualify for the scheme, projects must deliver at least eight hours of electricity storage capacity and meet strict efficiency standards.
Emerging Energy Storage Technologies
Pumped Storage Hydropower has historically provided the backbone of the UK’s energy storage capacity. However, the new scheme opens the door for several emerging storage technologies.
These include:
- Liquid air energy storage
- Compressed air energy storage
- Flow battery systems
- Advanced grid-scale battery storage
Currently, the UK operates approximately 2.8GW of long duration energy storage across four pumped storage facilities located in Scotland and Wales.
The National Energy System Operator (NESO) recommends adding between 2.7GW and 7.7GW of additional LDES capacity by 2035.
Economic and Consumer Benefits
Long duration energy storage could deliver major economic benefits to the UK energy system.
Government analysis suggests deploying 20GW of LDES by 2050 could save the electricity system approximately £24 billion between 2030 and 2050.
These savings could reduce household electricity costs by allowing cheaper renewable energy to be used during peak demand periods instead of expensive fossil fuel generation.
In addition, increased energy storage capacity strengthens energy security and reduces reliance on volatile international energy markets.
Implementation Timeline
The first application window for the cap and floor scheme is expected to open in Q2 2026.
Two delivery tracks will be available:
- 2030 delivery projects
- 2033 delivery projects
Ofgem aims to approve the first round of projects by Q2 2026, enabling rapid growth in the UK’s energy storage capacity during the next decade.
Impact on Energy Sector Jobs
The expansion of long duration energy storage will create new employment opportunities across the UK energy sector.
Key skills expected to be in demand include:
- Electrical and mechanical engineering
- Energy system modelling and optimisation
- Project management and infrastructure delivery
- Environmental impact assessment
- Energy regulation and policy expertise
- Data analytics and energy forecasting
Many opportunities will emerge near existing pumped storage facilities in Scotland and Wales, although the expansion of new technologies means jobs will be created across the UK.
Recruitment Opportunities in Energy Storage
As the LDES market expands, companies will face increasing competition for skilled professionals across engineering, project development, and energy infrastructure.
Astute People specialises in recruitment across the power, renewables, and nuclear sectors, helping organisations secure the talent required to deliver major energy projects.
Explore our renewable energy recruitment services or learn more about our People Plus recruitment solution.
Conclusion
Ofgem’s long duration electricity storage scheme marks a major milestone in the UK’s transition to a clean and resilient energy system.
By supporting new storage infrastructure, the initiative will enable greater renewable energy integration, reduce electricity costs, and strengthen national energy security.
With continued investment, innovation, and workforce development, the UK is well positioned to become a global leader in long duration energy storage.