NextPower UK ESG Acquires Standalone Battery Energy Storage System
London, 28 November 2024 –NextEnergy Capital is pleased to announce that NextPower UK ESG has acquired a 29MW, two-hour duration standalone Battery Energy Storage System (“BESS”) project called ‘Rutherglen’, marking NPUK’s 13th acquisition into the NPUK, and its third acquisition in November.
Rutherglen is a ready-to-build BESS project which offers an attractive grid connection and an estimated commercial operation date in 2026. The project is strategically located in Glasgow where it can access multiple transmission interfaces between Scotland and England, allowing the project to benefit directly from constraint management services to the National Energy System Operator via Balancing actions during periods of high wind generation. Rutherglen also provides optionality through augmentation to increase its storage duration in the future.
Including Rutherglen, the total battery capacity secured in the portfolio now stands at 49MW providing an excellent complement to NPUK’s solar portfolio. Across all NextEnergy Capital funds, the total BESS capacity now stands at over 700MW of both operational and ready-to-build projects either on a standalone or co-located basis.
Once fully deployed at approximately 1GW capacity, NPUK will provide enough clean energy to power an estimated 250,000 UK households per year, meaning NPUK investors are delivering meaningful impact from their commitment to the fund.
NPUK continues to actively fundraise towards its hard cap having successfully secured total funds committed to date of £683m, c.37% above its target of £500m. NPUK has investors currently in late-stage due diligence with further capital expected to be closed in the following weeks.
Ross Grier, COO and Head of UK Investments at NextEnergy Capital, said:
“This acquisition is NPUK’s first standalone BESS project representing a significant milestone for the Fund as it reaches 595MW in capacity. Energy storage will play an important part in the UK’s future energy ecosystem and will be crucial in enabling the continued rollout of renewables across the UK. High-quality projects, such as Rutherglen, in the right strategic location are a great addition to the NPUK portfolio, providing investors with access to the attractive and diversified return profile of BESS paired with the stable generating portfolio of solar assets.”
Dario Hernandez, Head of Battery Storage at NextEnergy Capital, commented:
“Rutherglen is a fantastic BESS project to introduce to the NPUK portfolio. It is strategically placed near Glasgow, Scotland, north of the B6 boundary to both capture excess energy being generated by local renewable energy sources and provide balancing services to NESO. The improvements in NESO dispatch capability, together with impressive Li-Ion technology and cost improvements, provide an excellent entry point for monetising standalone storage in the deep and liquid wholesale market. We continue to see BESS as a highly complementary asset to a solar portfolio.