BW ESS and partner Penso Power have signed the first long-term tolling agreement for a single battery energy storage system (BESS) in Great Britain with Shell Energy Europe.
The seven-year tolling agreement applies to the 100MW/330MWh Bramley BESS currently under construction in Hampshire. In 2021, BW ESS, the global energy storage owner-operator, and Penso Power, which deploys, owns and manages grid-scale battery energy storage projects, announced a joint venture through which BW ESS will build out Penso’s UK project pipeline for a total of more will finance more than 3 GWh. .
The fixed price agreement will provide revenue security for BW ESS and Penso Power, while Shell trades the Bramley BESS in a range of ancillary services and wholesale markets. Shell pays owners a fixed fee for the BESS and retains all benefits.
It may be the first tolling deal of this size for a single asset, but the first major UK tolling deal announced in Britain was earlier this year by Gresham House and Octopus Energy for a portfolio of 568 MW of operational projects.
The 100MW/330MWh Bramley site is the first project in Europe to deploy Sungrow’s PowerTitan 2.0 liquid-cooled BESS – a system that combines a 2.5MW power conversion system using integrated string inverters and a 5MWh battery in one container.
Thanks to this technology, the 330MWh project occupies a relatively small area. When commissioned, which is expected to occur in the fourth quarter of this year, the Bramley project is expected to be the longest-lived BESS in Britain.
“We are delighted to be working with Shell’s highly experienced energy trading team on this project,” said Erik Strømsø, CEO of BW ESS. “Bramley demonstrates our commitment to advancing energy storage solutions that set the bar for the broader market – as we pioneer new models for project financing and operation.
“This tolling agreement, which has been in the works for some time, demonstrates the attractiveness of battery systems with longer life and better performance. It not only secures long-term revenues for Bramley, but also helps enable the market’s shift from short-term frequency response to load shifting.”
According to Rupen Tanna, head of power and systematic trading at Shell Energy Europe, because tolls are a hallmark of conventional energy trading, Shell “has the trading experience to add significant value while supporting Britain’s ongoing energy transition.” .
Tanna said the experience gained from early tolling deals such as this will be “invaluable” to the wider market.
This echoes what James Bustin, assistant fund manager at Gresham House, recently said told Energy storage.news. Speaking about the tolling agreement signed between the fund manager and utility Octopus Energy, Bustin said: “This has made the wider market aware that this is an option.”
