How the UK's LDES Cap-and-Floor Scheme Works

Long-duration storage is costly to build and its revenues are uncertain, which deters investment. The UK's cap-and-floor scheme guarantees a revenue floor while capping the upside for consumers. Here is how it works, and why it is being watched abroad.

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Pumped storage hydro reservoir and dam in the Scottish Highlands with pylons and distant turbines
Image: AI-generated illustration.

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