The Anonymous Widower

Cap And Floor Mechanism The ‘Standout Solution’ For Long Duration Storage, KPMG Finds

The title of this post, is the same as that of this article on Current News.

These are the first two paragraphs.

A cap and floor regime would be the most beneficial solution for supporting long duration energy storage, a KPMG report has found.

Commissioned by Drax, the report detailed how there is currently no appropriate investment mechanism for long duration storage. Examining four investment mechanisms – the Contracts for Difference (CfD) scheme, Regulated Asset Value (RAV) model, cap and floor regime and a reformed Capacity Market – it identified cap and floor as the best solution.

Cap and floor has been used successfully in the financing of interconnectors, so perhaps to apply it to long duration energy storage, will lead to greater use of such storage.

January 12, 2022 - Posted by | Energy Storage, Finance | , , , ,

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