Ofgem has published the Long Duration Electricity Storage (LDES) cap and floor financial model (CFFM) and accompanying handbook, setting out the financial framework applicable to LDES projects under Window 1 of the cap and floor scheme. The handbook explains the purpose, structure and operation of the LDES CFFM, detailing the building-blocks approach used to calculate revenue cap and floor levels, and describing the inputs, calculations and outputs of each worksheet in the model. The CFFM will be used to complete financial assessments for LDES Window 1 projects and to set initial cap and floor levels at regime award in summer 2026. The model will subsequently be updated with project-specific inputs at the Final Investment Decision or financial close to revise the initial administrative cap and floor levels, and, where relevant, the Actual Cost of Debt floor. A final update will follow the Post Construction Review to set the enduring cap and floor levels. Ofgem has appointed the Government Actuary's Department to review and provide quality assurance for the CFFM and handbook.