Highview Power Announces Two Long Duration Energy Storage Projects Eligible for Support Under UK Government’s ‘Cap and Floor’ Scheme

Highview Power, a leading provider of long-duration energy storage (LDES) technology, announced today that two 3.2GWh power plants, planned for development in the UK by 2030, have been accepted by Ofgem as ‘projects eligible’ to receive support under the government’s ‘cap and floor’ scheme for energy storage.

This is a significant step forward for Highview Power’s multi-billion pound long-duration energy storage (LDES) programme, indicating that the two projects meet the minimum criteria for deliverability by 2030, as part of the cap and floor scheme. It also marks the beginning of the next project assessment stage. As part of this, Ofgem will conduct an independent customer benefit analysis in conjunction with NESO (the National Energy System Operator), looking at the economic, strategic and financial parameters of the projects. A final decision on whether the projects can be built out with a cap and floor will be reached in Q2 2026.

The two facilities to be included in Ofgem’s review include the recently announced plant in Hunterston, Scotland as well as a facility located at Killingholme, Lincolnshire. The company’s liquid air technology will be at the heart of these facilities, with each one utilising 100% sustainable technology and offering a lifespan of over 40 years.

Richard Butland, CEO of Highview Power, said,“Highview Power’s success at getting to this stage in the cap and floor scheme is great news. It represents a significant step on the road to securing Britain’s long-term energy security and to achieving the Clean Power 2030 plan, given that our two planned facilities, together with the Carrington site, will collectively deliver around 7 GWh of clean energy to the UK grid.

“It is also a major step forward for developing our world leading technology platform in the UK and building a supply chain and infrastructure to support this LDES cap and floor window, for 2030 and beyond.”

The design and locations of Highview’s projects have been specifically chosen to deliver the most effective overall solution to NESO as it addresses energy transition challenges that can be solved by long duration energy storage.

The cap and floor regime, which is administered by Ofgem, provides a minimum revenue floor for LDES operators to manage high capital costs and long build times, while the revenue cap lowers costs for consumers.

Highview Power’s facilities are designed to balance supply and demand in the grid by capturing and storing excess renewable energy through innovative liquid air energy technology. This energy is then delivered back to the grid when there is demand. Currently, this excess energy is “curtailed” where power generation companies are paid to turn wind turbines off, costing the UK billions of pounds every year. The two facilities will also integrate “stability islands”, which will provide crucial grid stability services – like inertia, synchronisation and frequency regulation – that renewables cannot.

Highview Power is developing a multi-billion-pound LDES programme, enabling the technology’s vast potential to reinforce and accelerate UK decarbonisation. Work has already started on a 300MWh energy storage and grid stability facility in Carrington, Manchester, scheduled to be operational by 2026.