UK boosts energy innovation with 162MW battery storage projects, signaling a move towards sustainable power and robust energy infrastructure.
In a significant push towards bolstering the UK's battery energy storage system (BESS) capabilities, Masdar Arlington Energy, Renewable Power Capital (RPC), and TagEnergy have embarked on projects totaling 162MW. . As reported by Energy Storage News, this strategic move is a testament to the country's budding predominance in energy innovation. The UK is already a leader in BESS with an anticipated 7.3GW/11.6GWh online by the end of 2024 (as predicted by projections from Solar Media Market Research). These developments were highlighted at the recent Energy Storage Summit in London, and this move underscores the market's maturation and the growing emphasis on innovative financing and operational strategies in the renewable sector. Let's dive in below.
The operations kick off with Masdar Arlington Energy initiating the construction of two robust battery energy storage systems in Rochdale and Stockport, boasting a collective 55MW of boasting a combined capacity of 55MW. This comes on the heels of their previous assertion of investing a substantial £1 billion in domestic storage capacities. Utility giant Octopus Energy, through its Kraken Flex system, is set to orchestrate the optimization of these facilities.
Meanwhile, Renewable Power Capital's acquisition of a ready-to-build 57MW project marks its entry into the UK market, with construction set to start shortly, aiming for a summer 2025 operational date. TagEnergy's Scottish investment completes this triumvirate, closing financing arrangements for its 49.9MW Pitkevy venture t in Fife, Scotland. With this project, TagEnergy accentuates its presence in UK's greener future by incorporating it into an established funding structure endorsed by reputable financial institutions. Collaborating with Tesla and RJ McLeod, the project will be facilitated by a non-recourse green loan package supported by Santander UK, Rabobank, and Triple Point. This initiative represents the sector's evolving financial landscape, as commercial ventures as backed by non-recourse loans with revenue assurance from the Capacity Market.
These initiatives reflect a strategic pivot towards leveraging advanced energy management systems and embracing collaborative development partnerships to enhance the UK's renewable energy infrastructure. Benefitting from innovative financing (including an accordion facility for future expansions) illustrates the growing confidence in BESS projects as viable and sustainable investment opportunities. Such developments signal a robust momentum within the UK's renewable energy sector, characterized by strategic acquisitions, green financing, and a forward-looking approach to energy storage and management.
It also makes one wonder if the U.S. will be able to catch up to the UK's lead in respect to battery projects. As of 2022, the UK already gets 35% of its electricity coming from renewable sources (compared to 42% that come from fossil fuels). In 1991, that number was only 2%, and in 2013, it was 14.6%. Now it's also a leader in terms of battery storage expansion, as it has expanded by 70% over the past year. The U.S. will attempt to beat that number this year, with plans to effectively double the amount of battery capacity already in the pipeline. We'll see if it can deliver!
Source: Energy Storage News
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