Image: Sirbatch, Wikimedia Commons
By ESS news
The UK government has announced a new cap-and-floor program to support the rollout of long-term storage capacity, in a bid to encourage investment in both mature and new storage technologies.
The energy sector regulator, Ofgem, will act as the authority for the programme, which is expected to open to applicants in 2025. Cap-and-floor schemes work by providing revenue support to developers if their annual gross margin – the difference between the revenue from selling electricity back to the grid and the cost of charging – falls below a fixed floor level.
Full details of the plan have yet to be announced, but the UK government has claimed it will remove barriers that have prevented the construction of new storage capacity “for almost 40 years” and could lead to “billions in system savings”.
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