Israel-based IPP Econergy has secured £21 million in project funding for its 40MW/120MWh Dalmarnock battery energy storage system (BESS) in Scotland.
With this money from Santander UK, Econergy has completed the Dalmarnock project financially.
The company said this was an “important milestone” in its transition from a developer to an independent power producer (IPP) model, where it develops, owns and operates its projects. It claimed the transaction “paves the way for the wider commercialisation” of its UK pipeline, which includes almost 3GW of projects.
Econergy also entered into a long-term optimization agreement with EDF for the Dalmarnock project to improve revenue visibility and cash flow. It said EDF’s strategy “combines downside protection with participation in market volatility.”
“By working with Santander and EDF, we have not only secured capital efficiency, but also created a revenue structure that provides long-term visibility while maintaining exposure to the upside of the UK energy transition,” said Eyal Podhorzer, CEO of Econergy.
Stuart Fenner, commercial director at EDF’s Wholesale Market Services, added: “By providing a reliable revenue base, this project makes it easier to use more renewable energy and shows how collaboration can accelerate the UK’s clean energy transition.”
EDF, a subsidiary of the French energy giant, has signed optimization agreements with a large number of British BESS developers and owners. In September it signed deals with Elements Green 720MWh Staythorpe BESSa few similarities BESS and solar energy projects with Verdant Energy and an optimization agreement for Fidra Energy’s Thorpe Marsh BESS projectwhich is expected to be the largest energy storage project in Britain.
Econergy owns eight solar and energy storage projects in Britain, operational or under construction. In March last year, Solar Power Portal spoke to the company’s head of storage about its Swangate BESS, investment strategy and the future of the BESS market.
Nowadays it belongs to the government National Wealth Fund has announced a strategic plan that would support the UK’s energy storage and solar deployment, battery manufacturing and other strategic clean energy sectors to potentially unlock £100 billion of private investment over the next five years. You can register at watch a one-hour webinar where Solar Power Portal spoke to Josh Cornes, analyst at Solar Media Market Research, about the UK solar and BESS market and the impacts network reform plans could have.
