Who won: 2026-043 LDES Economic and Financial Support

About this contract

Ofgem is nearing completion of the first application window (Window 1) for LDES, with projects having progressed through eligibility and detailed project assessment stages. The current phase of the programme is focused on final awards and finalising licence parameters and preparing for licence awards, expected in Autumn 2026. This represents a critical transition from policy development to implementation. As the regime moves into delivery and future allocation rounds, Ofgem requires robust, evidence-based approaches to project specific economic assessment, revenue modelling, and project evaluation. Setting cap and floor levels relies on a robust understanding of project financial viability, including the interaction between costs, revenues, and risk. There remains a risk that poorly evidenced or unrealistic financial assumptions could lead to inappropriate support levels, thereby exposing consumers to unnecessary cost and risk. This principle remains central as Ofgem (i) finalises decisions for Window 1 projects, (ii) monitors and refines the regime during implementation, and (iii) incorporates lessons learned into the design and delivery of future application windows. Ofgem the

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