Technologies

Long duration energy storage (LDES) modelling

Long duration energy storage (LDES) discharges at full power for longer than the one to four hours typical of lithium-ion batteries. Ofgem's definition for Great Britain is eight hours or more. Gridcog compares battery durations on forward price projections, capacity market de-rating and degradation, so you can see when longer duration earns its extra cost.

  • In June 2026, Ofgem provisionally selected 16 projects for the first window of its LDES cap and floor scheme. They total about 7.6 GW, with durations of 8 to 22 hours.

  • In February 2026, New South Wales contracted six lithium-ion batteries in its largest long duration storage tender: 1.17 GW / 11.98 GWh, about 10 hours on average.

  • Gridcog Chief Product Officer Pete Tickler modelled a 100 MW battery in New South Wales on three price projections. All three sustained price spreads for 4 and 8 hours, and in some cases 12.

What is long duration energy storage?

Long duration energy storage (LDES) stores electricity and releases it over many hours, moving energy from cheap periods, such as sunny middays, into evening and overnight peaks. Ofgem defines LDES as storage that can discharge for eight hours or more. Lithium-ion batteries typically run for one to four hours, and the operational utility-scale batteries in Australia's National Electricity Market (NEM) were all one to two hours in early 2025.

How is storage duration measured?

Duration is the time a storage asset takes to charge or discharge at maximum power: its energy capacity (MWh) divided by its power (MW). A 100 MW battery with 800 MWh of storage has an eight-hour duration. More in our guides to energy storage duration and MW vs MWh.

Which technologies provide long duration storage?

Four technologies made Ofgem's June 2026 shortlist for Great Britain's LDES cap and floor scheme, and lithium-ion took most of the places.

TechnologyHow it stores energyProjects in Ofgem's window 1 shortlist (June 2026)
Lithium-ion batteriesElectrochemical cells; a longer duration adds energy capacity for the same power11
Pumped storage hydroPumps water to an upper reservoir and releases it through turbines; Dinorwig in Wales stores 9.1 GWh3
Compressed air energy storageStores energy as compressed air and releases it through a turbine1
Vanadium flow batteriesStores energy in liquid electrolytes held in tanks; energy capacity grows with the size of the tanks1

How does Gridcog model long duration storage?

As a battery with the duration, efficiency and degradation of the technology you're assessing, dispatched interval by interval against every market it can earn from. You can compare durations side by side in one project.

01

Durations side by side

Set up one scenario per duration, for example 2, 4 and 8 hours, and keep every other input the same so the comparison isolates duration. Size each battery by power and duration, or by storage and duration.

02

Forward price projections

Run each duration on historical prices, or on your own or third-party price projections added to the Gridcog Library. Pete Tickler's New South Wales model used three projections from Endgame Analytics.

03

Settings for each technology

Set round trip efficiency, self discharge per day, depth of discharge and daily cycle limits for the technology you're assessing. Gridcog's battery asset represents lithium-ion, flow and other battery chemistries, and its flexible parameters can represent other storage, such as compressed air.

04

Degradation of power and energy

Degrade storage capacity, power capacity and round trip efficiency on separate schedules, so you can see how duration changes as the asset ages. Capacity changes model augmentation, such as topping up storage lost to degradation.

05

Capacity markets by duration

Capacity markets de-rate storage by duration. Gridcog applies de-rating factors by duration and auction, so you can see what each extra hour adds in capacity revenue.

06

Paired with solar or wind

Put long duration storage on the same grid connection as a solar or wind farm, including batteries that charge only from on-site renewables. See how much curtailed output each duration captures. More on co-located battery storage.

Modelled in Gridcog

Do longer duration batteries pay in Australia's NEM?

The price patterns now support them in New South Wales. Gridcog Chief Product Officer Pete Tickler modelled a 100 MW battery at different durations on three price projections. All three sustained intraday price spreads for 4 and 8 hours, and in some cases 12.

100 MW battery, New South Wales

Starting point
Operational utility-scale batteries in the NEM were all one to two hours in duration
Set-up
Power fixed at 100 MW; duration varied
Prices
Three projections from Endgame Analytics: Orderly Transition (based on the Step Change scenario in AEMO's Integrated System Plan), Headwinds and State Success
Result
Intraday price spreads held for 4 and 8 hours in every projection, and for 12 hours in some cases
Why it's changing
Solar pushes midday prices down, dispatchable generation sets higher prices in the evening and overnight, and storage costs are falling

Weighing up a 4-hour battery against an 8-hour one?

Model your storage project in Gridcog

Which markets pay for long duration storage?

Great Britain and New South Wales both run schemes that contract long duration storage, and capacity markets give longer durations higher de-rating factors.

New South Wales: long-term energy service agreements

ASL (formerly AEMO Services) runs tenders for long-term energy service agreements (LTESAs) under the NSW Electricity Infrastructure Roadmap. Its largest long duration storage tender, announced in February 2026, contracted six lithium-ion batteries totalling 1.17 GW / 11.98 GWh. That's about 59% of the state's minimum objective of 2 GW / 16 GWh by 2030.

Capacity markets

Great Britain's Capacity Market de-rates batteries by duration. In the 2024/2025 T-1 auction, storage of eight hours or more had a de-rating factor of 94.37%, against 11.34% for one-hour storage. Compare schemes in our guide to capacity markets for battery storage in Europe.

Which storage companies use Gridcog?

Rows of flow battery units outdoors under a blue sky
Vanadium flow batteries, UK, Europe, North America and Australia

Invinity Energy Systems

Invinity models front-of-meter and behind-the-meter revenue for its customers' projects in Gridcog, for standalone batteries and hybrid systems with solar and wind.

‘Gridcog lets us model the impact of different scenarios quickly and accurately.’
Ece Sayin, Director of Market Intelligence

Who models long duration storage in Gridcog?

Developers and independent power producers (IPPs), investors, energy majors and storage technology providers.

Frequently asked questions

Usually eight hours or more. Ofgem uses eight hours as the minimum for Great Britain's LDES cap and floor scheme. In the 2024/2025 T-1 Capacity Market auction, storage of eight hours or more was also in the highest de-rating band. Gridcog's analysts also use 'long(er) duration' for the 4- to 12-hour batteries now modelled in Australia's NEM, where operational batteries were all one to two hours in early 2025.

Lithium-ion batteries, pumped storage hydro, compressed air energy storage and flow batteries. All four are among the 16 projects Ofgem provisionally selected in June 2026, with lithium-ion making up 11 of them. New South Wales' largest long duration storage tender, in February 2026, contracted only lithium-ion batteries, averaging about 10 hours.

When price spreads last long enough to use its full duration, or when it can absorb renewable output that would otherwise be curtailed. In Pete Tickler's 2025 New South Wales model, spreads held for 4 and 8 hours on all three price projections. Longer duration also earns a higher capacity market de-rating. Gridcog tests each duration on your prices, costs and grid connection.

It gives a project a minimum revenue, the floor, topped up through consumer bills if market revenue falls short. Above a cap, extra revenue is shared with consumers. Projects must be able to discharge for at least eight hours. Ofgem opened the first application window in April 2025 and provisionally selected 16 projects on 26 June 2026.

Yes. Gridcog's battery asset represents lithium-ion, flow and other battery chemistries, with settings for round trip efficiency, self discharge, depth of discharge, cycling and degradation. Its flexible parameters can also represent other storage, such as compressed air. Invinity Energy Systems models its vanadium flow batteries in Gridcog for customer projects in the UK, Europe, North America and Australia.

Because capacity markets pay for availability during system stress, and longer storage can keep delivering for longer. Great Britain de-rates storage by duration. In the 2024/2025 T-1 auction, storage of eight hours or more had a de-rating factor of 94.37%, against 11.34% for one-hour storage. Gridcog applies de-rating factors by duration and auction.

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The team behind Gridcog

Fabian Le Gay Brereton, Chief Executive Officer and Co-Founder of Gridcog

Fabian Le Gay Brereton

Chief Executive Officer & Co-Founder

Previously co-founded Greensense, acquired by ERM Power (now Shell Energy).

Pete Tickler, Chief Product Officer and Co-Founder of Gridcog

Pete Tickler

Chief Product Officer & Co-Founder

Co-founded Greensense and led digital innovation at ERM Power (now Shell Energy).

Genna Boyle, Chief Commercial Officer and Head of EMEA at Gridcog

Genna Boyle

Chief Commercial Officer & Head of EMEA

More than 10 years in energy strategy, trading and renewables, with senior roles at Battery Optimiser and Limejump.