12 March 2025
Invinity Energy Systems
plc
("Invinity" or the "Company")
UK LDES Cap & Floor to
Open in April
Technical Decision Document
published by Ofgem ahead of first application window
opening
Invinity Energy Systems plc (AIM:
IES) (AQSE: IES) (OTCQX: IESVF) a leading
global manufacturer of utility-grade energy
storage, welcomes the release of a
Technical Decision Document ("TDD") by Ofgem, confirming key final details of the UK LDES
Cap & Floor scheme.
The Company is extremely pleased
with this development, as it reinforces the critical role long
duration storage solutions like Invinity's could have in a future
low-cost, highly reliable UK electric grid.
As anticipated, eligible
technologies have been split into two application routes: Stream 1,
which will focus on most-mature technologies (specifically Pumped
Hydro Storage ("PHS")), and Stream 2, which will be dedicated to
proven, innovative technologies such as flow batteries.
The TDD contains a number of
important confirmations which underline the suitability of
Invinity's technology and an appropriate development pathway for
the scheme, including:
·
A two-month application window which will open in
April 2025;
·
An indicative total capacity of between 2.7 and
7.7 GW;
·
A minimum 8-hour storage duration, (increased from
6 hours under the previous guidance);
·
A minimum project size requirement of 400 MWh
(increased from 300 MWh under the previous guidance);
·
A 25 year project life target with no degradation
of asset performance; and
·
A programme floor that is intended to support
returns on invested capital, including both debt and
equity.
The TDD has further confirmed the
Company's expectations regarding eligibility, including the
exclusion of projects that can already be deployed without support,
and flow batteries being one of only three technologies currently
expected to participate within Stream 2.
Finally, the TDD has confirmed that
there will be two delivery tracks with entry into service required
by 2030 and 2035. The Company expects that its established
manufacturing capability in the UK will enhance its ability to
deliver as part of the first delivery track, giving it an advantage
over solutions with a longer delivery timeline.
With the TDD published, the Company
is looking forward to continuing to engage with numerous developers
looking to submit bids within the first application window. This
news follows the announcement in February that
Invinity and Frontier Power have partnered
to submit up to 2 GWh of bids into the
scheme.
Jonathan Marren, Chief Executive
Officer at Invinity said:
"Yesterday's announcement
firmly underlines the importance of longer duration energy storage
for the UK's future energy system. Our vanadium flow batteries, if
deployed at the scale envisaged by the LDES cap and floor scheme,
will enhance UK energy security while helping to lower costs
for consumers and bring a host of wider economic benefits including
the creation of new 'green' jobs in the UK.
"We are delighted that we continue to engage deeply with the
teams at DESNZ and Ofgem in respect of the vital role LDES has to
play in the UK's energy future and look forward to our proven, Made
in Britain vanadium flow batteries playing a significant role in
the country's future, clean, low-cost electric grid."
Stay up to date with news from
Invinity. Join the distribution list for the Company's monthly
investor newsletter here.
Enquiries:
|
Invinity Energy Systems plc
|
+44 (0)20 4551 0361
|
|
Jonathan Marren, Chief Executive
Officer
Joe Worthington, Senior Director,
Corporate Affairs
|
|
Notes to Editors
Invinity Energy Systems plc (AIM:
IES) (AQSE: IES) (OTCQX: IESVF)
manufactures vanadium flow batteries for
large-scale, high-throughput energy storage requirements of
business, industry and electrical networks.
Invinity's factory-built flow
batteries run continually with no degradation for over 25 years,
making them suitable for the most demanding applications in
renewable energy production. Energy storage systems based on
Invinity's batteries are safe, reliable, and economical, and range
in size from less than 250 kilowatt-hours to tens of
megawatt-hours.
Invinity was created in April 2020
through the merger of two flow battery industry leaders: redT
energy plc and Avalon Battery Corporation. With 75 MWh of systems already deployed or contracted for
delivery across 82 sites in 15 countries,
Invinity is active in all major global energy storage markets and
has operations in the UK, Canada, USA and China. Invinity Energy
Systems plc is quoted in the UK on AIM and AQSE and trades in the
USA on OTCQX.
To find out more, visit
invinity.com,
sign up to our monthly
Investor Newsletter here or
contact Investor Relations on via +44 (0)20 4551 0361 or
ir@invinity.com.
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