Harmony Energy Income Trust (HEIT) today (September 12) announced that it has powered two major UK battery energy storage systems (BESS).
Investment company BESS has successfully powered its Hawthorn Pit and Wormald Green projects, with both expected to become fully operational in the coming weeks.
The 49.9MW/99.8MWh Hawthorn Pit project is located in County Durham, while the 33MW/66MWh Wormald Green project is in Yorkshire. Both projects use two-hour liquid-cooled energy storage systems supplied by Envision Energy, with this endorsement marking Envision Energy’s first working batteries in the UK.
These projects are HEIT’s seventh and eighth to be powered, and their activation means the company’s entire 395.4 MW/790.8 MWh portfolio is operational.
Norman Crighton, chairman of Harmony Energy Income Trust plc, said: “We are pleased to announce the activation of the Hawthorn Pit and Wormald Green projects, a significant milestone for the company, and one that will expand Harmony Energy’s total operating capacity Income Trust to 790.8. MWh / 395.4 MW, which represents 100% of the portfolio. It has been a pleasure working with Envision on these projects and we look forward to bp beginning its optimization services.
“Completing construction of eight BESS projects since IPO in November 2021 is a remarkable achievement and a testament to the skills and dedication of our key suppliers, consultants and project delivery team. Battery storage continues to play a crucial role in the UK’s transition to Net Zero, and our portfolio is making an important contribution to this.”
HEIT’s fortunes are beginning to turn
This news is a welcome change for HEIT as the company has had a difficult year so far.
In February, the company announced that its BESS revenues for the year ended October 31, 2023 were “significantly lower” than the previous year, due to a “weak revenue environment for BESS assets.” In May, HEIT took the drastic step of canceling its first-quarter shareholder dividend and announcing that it had appointed JLL to sell all or part of its BESS portfolio. A statement from HEIT last month noted that sales of these assets are progressing and potential bidders have shown strong interest. Final offers for these asset sales are expected by the end of September, according to the company.
HEIT’s interim financial statements, published in June, conveyed a sense of optimism, with Crighton declaring that “the worst is behind us and better, more profitable times lie ahead.” The company has restructured debt arrangements with NatWest and Rabobank, which HEIT says will provide the necessary “stability and freedom” for future success.
The fortunes of the wider UK BESS market appear mixed; While Ernst & Young’s latest Renewable Energy Country Attraction Index (RECAI) ranked the UK BESS market as the third best in the world, research firm Cornwall Insight notes that high energy prices, which are significantly reducing demand for BESS assets, are likely to persist until late this decade.
Recent analysis from Modo Energy shows that UK BESS systems achieved the second highest daily total revenue of the year to date last month, peaking at £250/MW on 21 August.
