LDES policy, regulation, subsidies and market design across global markets
New carbon policies and consumption tax adjustments in China are driving massive investments and technical breakthroughs in long-duration energy storage technologies.
Frontier Power's Legacy project has been selected to progress under the UK's LDES Cap and Floor Scheme, incorporating up to 260 MWh of vanadium flow batteries.
Eos Energy Enterprises has drawn $87 million from a US Department of Energy loan facility, signaling progress in scaling its zinc-based long-duration battery manufacturing.
Japan is aggressively promoting non-lithium long-duration energy storage through dedicated capacity market quotas and cybersecurity compliance labels, creating a lucrative environment for overseas and domestic flow battery developers.
Ofgem has provisionally shortlisted 16 LDES projects totaling 7.6GW under its cap-and-floor scheme, but the underrepresentation of vanadium flow batteries has prompted Invinity to reconsider its UK manufacturing plans.
The UK's new cap-and-floor scheme has selected 16 long-duration energy storage projects, including a vanadium flow battery, to de-risk investments and accelerate deployment.
Invinity Energy Systems is reassessing its UK manufacturing plans after only one of its 21 eligible projects was included in Ofgem’s provisional Window 1 LDES portfolio. The final decision for the 7.6 GW cap-and-floor mechanism is expected in autumn 2026.
British vanadium flow battery maker Invinity secured only one project in Ofgem's LDES cap-and-floor shortlist, prompting warnings of a manufacturing shift away from the UK.
Recent policy developments highlight contrasting regulatory approaches to energy storage, with the US introducing grid control bans affecting battery systems, while Chinese provinces like Hebei and Henan enforce stricter project management and rectifications.
Global vanadium producer Largo has secured a $60.1 million delivery order from the US Defense Logistics Agency, highlighting the strategic importance of critical minerals in LDES.
Indian state utilities are strategically exploring non-lithium alternatives like VRFBs to reduce import dependence and bolster national energy security.
Starting September 1, 2026, China will reintroduce a consumption tax on finished all-vanadium flow energy storage batteries. The tax aims to regulate the market while sodium and solid-state batteries remain exempt.