Highview Power Advances Two Major Long-Duration Energy Storage Projects under UK ‘Cap and Floor’ Scheme
Highview Power, a global leader in long-duration energy storage (LDES) technology, has announced a major milestone for its UK operations. The company revealed that two of its planned 3.2 GWh power plants, set for development by 2030, have been officially recognized by Ofgem as projects eligible for support under the UK government’s ‘cap and floor’ scheme for energy storage. This designation is a critical step forward for Highview Power’s multi-billion-pound LDES programme and signals a significant vote of confidence in the company’s ability to deliver long-duration energy storage solutions that will play a pivotal role in the UK’s clean energy transition.
The ‘cap and floor’ scheme is designed to provide a stable regulatory framework for energy storage projects, ensuring that operators have the minimum revenue required to cover high capital costs and long build periods, while simultaneously protecting consumers by capping costs. By achieving eligibility under this scheme, Highview Power’s Hunterston, Scotland, and Killingholme, Lincolnshire projects have cleared a crucial hurdle, demonstrating that they meet Ofgem’s minimum criteria for deliverability by 2030. This marks the beginning of the next stage of assessment, where Ofgem, in collaboration with the National Energy System Operator (NESO), will conduct a comprehensive and independent analysis of the projects’ economic, strategic, and financial impacts. The final decision on whether these projects will proceed under the cap and floor framework is expected in the second quarter of 2026.
The two facilities will leverage Highview Power’s pioneering liquid air energy storage technology. This cutting-edge solution enables the capture and storage of excess renewable energy, which can later be released to the grid when demand peaks. Each project is designed to operate with 100% sustainable technology and boasts an expected lifespan exceeding 40 years, underscoring Highview Power’s commitment to delivering reliable and long-lasting energy solutions. The deployment of liquid air energy storage allows the facilities to address some of the most pressing challenges in the UK’s energy transition, particularly those related to grid stability and renewable energy integration.
Richard Butland, CEO of Highview Power, highlighted the importance of this achievement, stating: “Highview Power’s success at reaching this stage in the cap and floor scheme is excellent news for the UK energy sector. This development represents a major step toward securing Britain’s long-term energy security and achieving the Clean Power 2030 plan. When combined with our Carrington site, these facilities will collectively deliver approximately 7 GWh of clean energy to the UK grid, providing a substantial boost to the nation’s renewable energy capacity.”
Butland further emphasized that the designation of these projects under the cap and floor scheme not only advances the UK’s decarbonization goals but also strengthens Highview Power’s technology platform within the country. “It is a critical step for building the supply chains and infrastructure necessary to support the long-duration energy storage sector in the UK, both now and beyond 2030,” he said.
The locations for these projects—Hunterston in Scotland and Killingholme in Lincolnshire—were strategically selected to maximize their impact on the national grid. The positioning of the facilities allows them to respond effectively to energy system challenges identified by NESO. Long-duration energy storage can mitigate the intermittency of renewable energy sources, such as wind and solar, by storing excess electricity that would otherwise be curtailed and delivering it during periods of high demand. This capability not only ensures a more balanced and resilient grid but also reduces the need for expensive emergency generation or grid interventions.
Currently, curtailment of renewable energy in the UK costs billions of pounds each year, as wind turbines are switched off when supply exceeds demand. Highview Power’s liquid air facilities aim to significantly reduce this waste by capturing surplus energy and making it available when it is most needed. In addition to energy balancing, the projects will include “stability islands,” systems designed to provide essential grid stability services. These include inertia, synchronization, and frequency regulation—services that conventional renewable technologies cannot deliver on their own. By providing these capabilities, Highview Power’s projects will help facilitate a greater integration of renewables into the UK electricity system while enhancing overall grid resilience.
The two new projects are part of Highview Power’s broader multi-billion-pound LDES programme in the UK. This initiative seeks to unlock the full potential of long-duration energy storage technology, reinforcing national energy security and accelerating the country’s decarbonization efforts. Highview Power has already begun construction on a 300 MWh energy storage and grid stability facility at Carrington, Manchester, which is scheduled to become operational by 2026. When completed, the Carrington plant, combined with the Hunterston and Killingholme projects, will position Highview Power as a major contributor to the UK’s clean energy infrastructure.
Highview Power’s liquid air energy storage system represents one of the most advanced and sustainable long-duration storage technologies available today. The process involves cooling air to extremely low temperatures to create a liquid, which can then be stored in insulated tanks for extended periods. When electricity is needed, the liquid air is warmed and expanded through turbines to generate power. This approach is not only scalable but also environmentally sustainable, as it uses no harmful chemicals and relies solely on air and electricity. By enabling large-scale energy storage with minimal environmental impact, Highview Power is helping to pave the way for a fully renewable energy system in the UK and beyond.
The recognition of Highview Power’s projects under the UK’s cap and floor scheme marks a turning point for long-duration energy storage in the country. It highlights the growing importance of innovative storage technologies in ensuring energy security, integrating renewable power, and reducing carbon emissions. With continued support from Ofgem and alignment with national energy objectives, Highview Power is well-positioned to deliver transformative solutions that address the UK’s energy challenges and support a cleaner, more resilient electricity grid.
