Highview Power has secured Ofgem’s backing for two long-duration energy storage projects, with the regulator confirming their eligibility for support under the UK government’s cap and floor scheme. Together, the plants represent 6.4GWh of liquid air storage capacity, with delivery planned by 2030.
The facilities — one at Hunterston in Scotland and another at Killingholme in Lincolnshire — will each store 3.2GWh using Highview’s liquid air energy storage (LAES) technology. Designed for 40-year lifespans, the plants will capture excess renewable power, feed it back to the grid during peak demand, and provide stability services such as inertia and frequency regulation.
Ofgem’s decision does not guarantee approval, but signals that the projects meet the baseline deliverability criteria for the cap and floor regime. The next phase will see an independent benefit assessment carried out with the National Energy System Operator, with a final ruling expected in Q2 2026.
Highview Power chief executive Richard Butland called the milestone “a significant step on the road to securing Britain’s long-term energy security and to achieving the Clean Power 2030 plan.” He added that the two projects, combined with the company’s 300MWh Carrington facility currently under construction, would collectively deliver around 7GWh of clean energy to the grid.
The cap and floor mechanism, traditionally used for interconnectors, sets minimum and maximum revenue boundaries to help developers manage the high capital costs of grid-scale infrastructure while protecting consumers from excessive charges. Extending this framework to long-duration storage is intended to unlock investment in technologies that address the intermittency of wind and solar generation.
At present, grid operators routinely pay renewable generators to curtail production when supply outpaces demand, costing billions annually. Highview’s approach aims to absorb this excess and redeploy it, improving utilisation of renewable assets and reducing reliance on fossil-fuelled balancing services.
With work already under way at Carrington and a pipeline of larger projects now moving into regulatory review, Highview is positioning LAES as a core component of the UK’s decarbonisation strategy. The company expects supply chain build-out and site development to accelerate in the second half of the decade, provided Ofgem’s final decision is favourable.
