Ofgem super-charges clean power storage

Regulator Ofgem said a new investment support scheme could unlock billions of funding to build major storage projects.

The new cap and floor regime would enable new Long Duration Electricity Storage (LDES) projects to be built for the first time in 40 years. 

Ofgem said large scale storage, such as pumped storage hydro, provides the grid with both security and flexibility to dispatch electricity to manage seasonable peaks or low renewable output over a period of time.

It said scheme will ensure value for money by driving down costs, only allowing efficient projects with a storage capacity of more than eight hours.

At the same time, the regulator said it will protect consumers with a cap on profits, meaning any excess revenues flow directly back to customers via their bills.