(Alliance News) - NextEnergy Solar Fund Ltd on Monday said it has bought the rights for a 250 megawatt portfolio of battery storage projects and grid connections in the east of England.
The Guernsey-based investor and asset manager in the solar sector acquired the portfolio for GBP32.5 million. The project increases the battery storage in NextEnergy Solar Fund's joint venture partnership with Eelpower, announced in September, to 300 megawatts.
The project, named 'Project Lion', is a two-hour duration system at 500 megawatt-hours and is expected to be energised in 2025, targeting an asset life of at least 50 years.
Once constructed, the project will provide "vital grid balancing services". It harnesses excess electricity generation from wind at low import prices and then exports electricity at times of low generation and high prices. The project has secured planning permission and grid connection rights.
NextEnergy Solar Fund said it was another "key milestone" and increases NextEnergy's participation in the UK battery storage market.
Once energised, NextEnergy said, the project will significantly contribute to increasing the UK's energy independence and will help accelerate the increased penetration of renewable energy in the UK.
Full construction of the project remains subject to shareholder and UK Financial Conduct Authority approval due to the company's existing investment policy being limited to 10% of gross asset value into energy storage.
Chief Executive Officer Michael Bonte-Friedheim said: "The project will provide crucial grid balancing services for a congested area in the UK, helping manage the ebbs and flows of renewable energy generation and nationwide demand for electricity. For NESF, it is a site that adds to its burgeoning exposure to UK battery storage, a sector where we, as the investment advisor, see enormous growth potential with synergies to NESF's current solar portfolio. We look forward to constructing this project by 2025 and to operating it for decades into the future."
Shares in NextEnergy were trading 0.2% lower at 107.96 pence each in London on Friday morning.
By Chris Dorrell; chrisdorrell@alliancenews.com
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NextEnergy Solar (NESF)