British energy regulator backs 16 electricity storage projects

Ofgem has provisionally approved support for 16 long-duration electricity storage projects across Great Britain, giving a major boost to technologies intended to help the grid through longer periods of low renewable output.

The package includes pumped-storage hydro, compressed-air storage, lithium-ion batteries and a vanadium redox flow battery. Reporting on the announcement says the projects together represent about 7.6 GW of capacity and would store electricity for roughly 8 to 32 hours.

The decision is provisional, not final. Ofgem is expected to complete consultation before contracts are awarded later in the year, and developers will still need final terms before moving on financing and construction.

What Ofgem approved

Among the 16 projects are three pumped-storage hydro schemes in northern Scotland: Loch Kemp, Coire Glas and Earba. The Guardian said these would be Great Britain’s first new hydropower projects in more than 40 years.

Other approved schemes include compressed-air storage projects from Storelectric and TeesCAES, along with battery projects from Statera Energy and Invinity Energy Systems. The mix reflects an effort to back technologies that can provide power over many hours, rather than only the short bursts typical of conventional batteries.

Ofgem director-general Akshay Kaul said the projects would help maintain secure supply during cold, hot, still or cloudy weather, when wind or solar output may be low. That is the central challenge long-duration storage is designed to address.

The announcement also lands at a time when Britain’s power system is under pressure from more variable renewable generation and from weather-driven spikes in demand. FT reported that the news followed a heatwave that strained power stations and led to extra power-supply calls this week.

Why long-duration storage matters

Britain already has short-duration batteries, but those systems are not built to carry the grid through extended periods of low generation. Long-duration storage is meant to bridge the longer gaps that can open up when wind and solar output fall at the same time.

That makes the regulator’s backing more than a narrow technology call. It is also a signal that the UK wants a broader portfolio of storage options as it pushes toward a cleaner power system with higher renewable penetration.

Pumped-storage hydro is a mature technology, but it has not seen a new major buildout in Great Britain for decades. The provisional approval of three new schemes is therefore notable both for the scale of the package and for the revival of a long-dormant infrastructure category.

The storage mix also shows the sector is not relying on a single answer. Pumped hydro, compressed air and advanced batteries each play different roles in covering supply gaps and helping balance the system over longer periods.

Funding model and next steps

The projects were backed under the cap-and-floor framework, which is designed to support revenue for storage schemes while limiting excessive profits. The aim is to make large, capital-intensive projects financeable without leaving consumers fully exposed to open-ended costs.

That matters because the projects approved in principle will still need to clear the next stage before any final build decisions are made. Ofgem’s provisional list could yet change after consultation, and the final contract terms have not been locked in.

Developers will be watching to see which projects survive unchanged and which are prioritised first. The market will also focus on the final terms of the cap-and-floor regime, because those terms will shape whether backers can commit to construction.

For the wider power system, the stakes go beyond a single funding round. If the projects progress, they could improve grid reliability during low-wind and low-sun periods, reduce exposure to volatile fossil-fuel markets and support the UK’s broader clean-power transition.