Ofgem has named the first projects it intends to back under the LDES cap-and-floor scheme. Sixteen projects made the cut, adding up to 7.6GW with durations of 8 to 22 hours, and final awards are expected this autumn. The biggest surprise is the technology: most of the winners are lithium-ion. GB is about to add a new generation of very large, long-duration batteries, and they will earn under a regulated revenue model rather than in the merchant market.
- What do the shortlisted projects look like operationally, and how does a cap-and-floor revenue model change asset management compared with a merchant battery?
- Most of the winners are lithium-ion at eight hours or more. Which practices from two-hour assets carry over, and what will be new for degradation, augmentation, cycling and availability?
- Much of the shortlisted capacity sits in the north of Scotland. How will grid constraints and network charges shape the way these assets are run?
