Long Duration Electricity Storage (LDES) cap and floor financial model and handbook
- Publication type:
- Guidance
- Publication date:
- Topic:
- Low carbon and nuclear energy
- Subtopic:
- Long duration electricity storage
- Industry sector:
- Long duration electricity storage,
- Supply and Retail Market
Sets out the financial framework that applies to LDES projects under Window 1 of the cap and floor scheme.
Details
You should read this guidance alongside the:
- financial framework consultation decision
- project assessment consultation decision
- project assessment multi-criteria assessment framework
- eligibility assessment outcome
We expect to use the Cap and Floor Financial Model (CFFM) to complete the financial assessment for LDES window 1 projects. The same model will be used to set initial cap and floor levels at regime award in the summer of 2026. It will then be updated with project-specific inputs at Final Investment Decision (FID) or financial close to revise the initial administrative cap and floor levels and the Actual Cost of Debt (ACOD) floor where relevant. A final update will follow the Post Construction Review to set enduring cap and floor levels.
We appointed the Government Actuary’s Department (GAD) to review and provide quality assurance for the LDES CFFM and handbook.