Value of long-duration BESS to the GB power system
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The UK government (through DESNZ and Ofgem) is developing a Cap and Floor scheme to accelerate investment in long-duration energy storage
In 2024, LCP Delta supported DESNZ with analysis confirming the value of long-duration energy storage (LDES) in cutting system costs and enabling low-cost decarbonisation.
Building on this work, we partnered with a consortium of battery energy storage system (BESS) developers to reassess the assumptions behind this analysis, demonstrating that long-duration BESS offers a lower-risk, lower-cost pathway to meeting the UK's storage needs.
This report also explores how current Cap and Floor scheme could inadvertently limit short-duration BESS investment and how a more balanced approach could support the deployment of both short- and long-duration BESS.
Explore the report
Read nowScroll down to explore our key findings
What’s the role of long-duration BESS?
As the UK pushes toward the Clean Power 2030 target, long-duration BESS could unlock a more resilient, low-cost and low-carbon electricity system. But how do they compare against other LDES options?
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£17.8 billionin total system cost savings by 2050 when BESS replaces alternative LDES options.
Are their risks for the existing storage investment pipeline?
Cap and Floor schemes can support LDES but current designs risk distorting the market and penalising shorter-duration BESS.
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12%drop in operating margins for 2hr and 4hr BESS under current Cap and Floor design.
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8 GWreduction in short-duration BESS capacity projected outside the scheme.
Market signals vs. System value: Where’s the disconnect?
Long-duration BESS provides system benefits across all durations but market signals alone won’t deliver investment.
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6+ hoursduration delivers strong system value, but is not investable without support such as Cap and Floor.
