Government highlights backing for electricity storage approach

The Government has stressed its support for Ofgem’s approach to supporting long duration electricity storage (LDES).

In an open letter to industry Minister for Energy, Michael Shanks said changes to planning laws will help safeguard the UK’s long-term energy security through a new mechanism to support the delivery of the next generation of LDES projects which include pumped storage hydro and certain types of battery.

Shanks said Ofgem has already made “great progress” in taking steps to implement a cap and floor scheme to support projects and has shortlisted 77 eligible schemes.

He said there are a small minority who oppose the scheme but stressed “this government gives full support to Ofgem for its overall approach to delivering the LDES cap and floor scheme”.

“I look forward to an exciting 2026 for LDES, in which Ofgem successfully concludes the first application window of the scheme with the support of government, Parliament, NESO and industry.”