LDES Cap and Floor Regime: our role, plan, and response to the DESNZ publication
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We are writing to inform everyone interested about our role and outline our initial thoughts on the cap and floor model for Long Duration Electricity Storage (LDES), allocation approach, timescales, and consultation questions following the recent publication by the Department for Energy Security and Net Zero (DESNZ) on LDES. DESNZ has tasked Ofgem with implementing a cap and floor regime to encourage investments in LDES.
This decision is supported by industry feedback and our experience with similar regimes for electricity interconnectors. This call for input explains what we will be doing, our timeline, and invites feedback from stakeholders to help shape the final plan and ensure we can decide on approved projects by mid 2026. Ofgem and DESNZ will publish technical details on the regime this winter. If you have any questions, please contact us at LDES@ofgem.gov.uk. We are grateful for your feedback and thank you for your contributions.
Respond name
LDES team
Respond telephone
[0207 901 7017](tel:0207 901 7017)
Respond email
Main document
[LDES Call for input - Cap and Floor Regime: our role, plan, and response to the DESNZ publication [PDF, 265.28KB]
](https://www.ofgem.gov.uk/sites/default/files/2024-12/Dec_OpenLetter_LDES_0.pdf)