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United Kingdom

Great Britain’s LDES cap and floor revenue support regime: legislation, regulatory framework, eligibility and assessment, application windows, Capacity Market and CfD interactions, and key issues for developers and funders

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Practice notes
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Practice Note

This Practice Note sets out a summary of the new cap-and-floor subsidy framework brought in by the UK government to back Long Duration Electricity Storage (LDES) projects across Great Britain (GB). It excludes subsidy arrangements for LDES in Northern Ireland, as these are beyond the territorial remit of the framework. It is strictly limited in territorial scope and application within GB only. The LDES subsidy scheme has been launched, in the first instance, to enable delivery of new (or materially refurbished existing) LDES assets from 2030 onwards, with an initial track aiming for delivery by 2030 and a second track targeting delivery by 2033. The first application window under the programme (covering both tracks) opened on 8 April 2025 (see: LNB News 08/04/2025 20) and closed on 9 June 2025. Eligible LDES assets will at the outset receive cap-and-floor support for a standard 25-year term, with all ‘economic and efficient’ capital expenditure incurred by developers recovered during that period, subject to specified criteria being satisfied...

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Web page updated on 21/05/2026

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