UK-based independent battery storage developer Kona Energy has secured a £40m ($51.6m) capacity market contract for its 228MW/456 megawatt hours (MWh) Smeaton battery energy storage system (BESS) project in East Lothian, Scotland.
The project is supported by two protections under the ongoing Grid Connection Reform and Clean Power 2030 plan, which enhances its grid connection certainty and long-term viability.
The Smeaton project obtained its capacity market contract through the T-4 auction, a government-supported scheme designed to guarantee electricity availability during periods of high demand.
The project is strategically positioned to store excess renewable energy and release it when needed, especially with the upcoming closure of the Torness nuclear power station, set to take place before 2030, and significant transmission constraints between Scotland and England.
It will also help lower constraint costs and support the UK's net zero transition.
Kona Energy founder Andy Willis stated: “This is a defining moment for Kona Energy and the Smeaton project. Securing a £40m capacity market contract is a testament to the project’s quality and national importance.
“The Kona team is wholly supportive of Grid Connection Reform and Clean Power 2030. This contract not only provides an attractive index-linked revenue contract but [also] a de-risked grid connection, which is crucial to investor confidence. Smeaton will help tackle the UK’s growing grid challenges by transforming wasted renewable energy into a valuable resource.”
Smeaton is now poised for the next phase of delivery, with investment discussions currently ongoing.
Detailed design work is underway in collaboration with Scottish Power Transmission and key supply chain partners.
Willis continued: “As we advance towards delivery, we are actively engaging with select strategic partners who can bring the right expertise and capital to maximise the project’s potential. We are open for further discussions with third parties who can bring extensive value and capital to deliver this project on the ambitious scale we are aiming for."
Kona Energy obtained approval from the Scottish government for the Smeaton BESS project in September 2024.
