SAE has today (7 August) announced that it has purchased all shares of a 120MW/240MWh BESS project under development in Uskmouth, South Wales.
The company has paid Enso Green Holdings, a joint venture between Cero Generation and Enso Energy, an initial consideration of £299,000 to acquire 100% ownership of the development vehicle used to develop the project. Under the share purchase agreement, SAE will pay Enso Green Holdings an additional deferred payment of £3.85 million when the project reaches financial close, as recognition of Enso Green Holdings’ contribution to the project to date.
SAE estimates that the project will cost an estimated £65 million, including the deferred consideration and transaction costs, and will generate average annual revenues of £12 million for the first five years of operation. The BESS project has a target grid connection date of October 2026.
Graham Reid, CEO of SAE Renewables, commented: “We have set a clear strategy to become an owner and operator of our projects and this announcement is a key next step in achieving this. A huge amount of work has already taken place to reach this milestone, demonstrating how SAE continues to hit its targets and deliver for its shareholders.”
This BESS is one of several in development at the Uskmouth Sustainable Energy Park, a renewable energy project under construction on the site of a former coal-fired power station. Construction is already underway on another 230 MW/460MWh BESS on the site, with this project jointly owned by E.ON and Quinbrook Infrastructure Partners.
The rise of UK BESS
Meanwhile, BESS projects further north have been picking up pace in recent weeks.
Last week, Harmony Energy Income Trust announced that it had successfully energized a 35MW/70MWh BESS asset in North Yorkshire, having faced connection setbacks due to delays with a distribution network operator’s connection programme.
Major projects are currently passing through planning stages too, with three large BESS proposals set to be seen by planning committees in the Scottish Highlands in the near future, while the 200MW/400MWh, 2-hour duration Harker project was granted “full planning permission for the construction and installation” by Cumberland Council last month.
