From ESS News
The UK government has announced a new “cap-and-floor” scheme to support the rollout of long-duration storage capacity, in a bid to spark investment in both mature and new storage technologies.
Energy industry regulator Ofgem will serve as the delivery body for the scheme, which is expected to open for applicants in 2025. Cap-and-floor schemes operate by providing revenue support to developers should their annual gross margin – the difference between the revenues from selling electricity back to the grid and the cost of charging – fall below a set floor level.
Full details of the scheme have yet to be announced but the UK government has claimed it will remove barriers that have prevented building new storage capacity “for nearly 40 years” and could lead to “billions in system savings.”
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