Proactive Investors - NextEnergy Solar Fund PLC has announced that its first standalone 50MW battery storage project, Camilla, has been chosen to provide capacity in the UK government's latest market auction.
The joint venture between NextEnergy and EelPower secured the contracts in the T-1 and T-4 auctions run by the Department of Energy Security and Net Zero last month (February).
Camilla is expected to earn £557,000 over winter 2023 and £576,000 per annum from 2026 to 2032. The asset will also support the electricity grid during stress events in winter 2023 and for six winters from October 2026.
Ross Grier, UK managing director of NextEnergy Capital, said: "We are pleased that NESF's Camilla battery has been selected alongside other battery storage assets to provide essential capacity to ensure the security of the nation's electricity supply.
“We are proud to contribute to the UK's energy transition and look forward to continuing our partnership with the Department of Energy Security and Net Zero."
The Camilla project, which is located in Fife, Scotland, is NESF's first standalone 50MW battery project.
It is expected to benefit from volatility driven by high Scottish wind capacity, low local demand and constraints on the National Grid. The first phase of the project is expected to be energised and grid-connected in the second quarter of this year.
Grier emphasised the importance of battery storage in ensuring a stable and resilient electricity grid.
He told investors: "The project's success in securing these contracts highlights the importance of battery storage in ensuring a stable and resilient electricity grid.
“The initial energisation at one-hour duration allows the battery to capitalise on current market dynamics whilst bringing forward the two-hour duration will ensure the asset is optimally placed to succeed as the UK's energy system evolves."
The capacity market auction is part of the government's Electricity Market Reform package aimed at securing the nation's electricity supply through payments to generators and flexible assets to ensure capacity is available as the country transitions to a grid dominated by intermittent renewable energy sources.