Gresham House expands with 50-MW energy storage buy in UK
The battery storage system in Glassenbury, Kent. Source: Gresham House Energy Storage Fund Plc
Gresham House Energy Storage Fund Plc (LON:GRID) said today it has acquired 50 MW of battery storage systems in the UK in a deal worth GBP 29.2 million (USD 39m/EUR 35m).
The capacity includes two facilities -- a 40-MW system in Glassenbury, Kent, and a 10-MW installation in Cleator Moor, Cumbria. Both were put on stream in January 2018 and have Enhanced Frequency Response (EFR) contracts through January 2022 to deliver sub-second responses to frequency deviations on the national grid. They also have 2016 Capacity Market contracts with 15-year terms.
Gresham House bought the assets from VLC Energy, a joint venture between Low Carbon and VPI Immingham, which is a subsidiary of Vitol Group.
This addition brings the fund’s portfolio of operational utility-scale battery storage systems to 125 MW. Following the completion of a 49-MW facility in the Red Scar Business Park, outside Preston, the portfolio will reach 174 MW. The Red Scar project, which Gresham House agreed to buy in October, is currently undergoing commissioning.
As part of its expansion, Gresham House plans to purchase three additional battery storage projects in the coming months -- two schemes of 50 MW each and a smaller 5-MW project. Their acquisition will occur after the assets become operational. The fund said the commissioning of the larger systems is likely to be pushed back into 2020’s second quarter due to unfavourable weather conditions.
Veselina Petrova is one of Renewables Now's most experienced green energy writers. For several years she has been keeping track of game-changing events both large and small projects and across the globe.