Teesside, 26 June 2026
TeesCAES, a 50MW 30-hour Compressed Air Energy Storage (CAES) project developed by Storelectric, has been named in Ofgem’s minded-to decision list for receipt of support through Window One of the Long Duration Electricity Storage (LDES) Cap and Floor Scheme.
TeesCAES is one of 16 projects provisionally selected from 171 initial applications, through a comparative, evidence-led assessment process. TeesCAES is the only CAES project named in the list, the only project based in the north of England, and one of only two projects selected utilising novel storage technology.
Ofgem recognised TeesCAES as a deliverable project that contributes to long-duration flexibility, reduces system costs compared to alternatives, and strengthens security of supply and resilience.
The cap and floor mechanism is designed to enable the delivery of nationally significant LDES assets by providing long-term revenue certainty. Under the scheme, projects benefit from downside revenue protection alongside a capped upside, materially reducing investment risk and strengthening overall project bankability.
The TeesCAES project’s inclusion in Ofgem’s minded-to decision list is another important milestone for Storelectric, following its exchange of contracts for the purchase of a site on Teesside earlier this year.
“Our inclusion in Ofgem’s minded-to decision list is another significant step forward for Storelectric and a strong endorsement of the TeesCAES project.” said Tallat Azad, Managing Director at Storelectric “It reflects the strength of our technology, the progress of our development work to date and the critical role CAES will play in enabling a net zero power system. This provisional selection strengthens the project’s commercial position and supports its advancement towards final investment decision.”
A consultation on the minded-to decision list is now open, following which Storelectric will commence contract negotiations with Ofgem. Subject to agreeing contractual terms with Ofgem, the TeesCAES Project will benefit from a clear regulatory framework, long-term revenue visibility and recognised national strategic value. Final cap and floor contract awards are anticipated later this year.
TeesCAES is designed to provide large-scale, long-duration electricity storage, helping to balance an increasingly renewable-based power system, improve security of supply and help decarbonise the nation’s industrial heartlands.
Further announcements will be made as the TeesCAES project progresses.
