6.4GWh of energy comes closer to delivery as Highview Power projects reach the next crucial stage
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.
About Highview Power
Highview Power has developed its LAES technology in the UK over the last 17 years. The technology can store renewable energy for up to several weeks, longer than battery technologies, and is ready to be deployed across key grid locations at scale today. Highview Power's technology will also provide stability services to the National Grid, which will allow for the long-term replacement of fossil fuel-based power plants for system support. By capturing and storing excess renewable energy, which is now the cheapest form of electricity, storage can help keep energy costs from spiralling, and power Britain's homes with 24/7 renewable clean energy. For more information, please go to: https://highviewpower.com/
Notes to Editors
Investment value to UK economy
The UK Government has recognised the need for system flexibility solutions, which is why the UK will implement a "cap and floor" scheme which provides revenue support to developers should their gross annual margin (the difference between the revenues from selling electricity back to the grid, and the cost of charging) fall below a set threshold known as the "floor." In return for consumers underwriting this risk, a revenue cap ensures that LDES asset owners must share some or all profits above a certain level.
This investment support scheme will allow Highview Power to develop its first two large scale assets delivering a £2bn investment by 2030. This will attract pensions and similar funds, seeking higher returns from both senior debt and equity, with the comfort of sovereign backing, which in turn will create the bedrock for attractive equity returns.
Delivering a net zero grid
By 2030, the UK will have 128GW of renewable electricity generation from solar, onshore and offshore wind and other sources, with national peak demand at 62GW. This will be sufficient for the UK to achieve its aim of a zero-carbon grid. Due to the lack of energy storage and grid stability assets in the UK, the 2030 aim will not be achieved without the commissioning of energy storage assets and assets to support the operation of the grid. NESO's 2025 FES scenario, in its Holistic Transition Pathway, has targeted 58GWh of non-battery storage capacity (c.£20bn of new investment) and 34GWh of batteries (c.£8.5bn of investment).
View source version on businesswire.com: https://www.businesswire.com/news/home/20250923277288/en/
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