Developer Kona Energy has secured a circa £40 million capacity market contract for its 228MW/456MWh battery energy storage system (BESS) in East Lothian, Scotland.
The two-hour-duration Smeaton BESS received planning permission in September 2024, cementing its position as one of the most advanced grid-scale energy storage projects in the UK, according to Kona.
The project secured its capacity market (CM) agreement in the T-4 auction and was one of only a few awarded that are being independently developed. The T-4 auction, which closed on 11 March, procured a total of 43.1GW across 669 capacity market units (CMUs).
According to Kona, as well as the CM contract providing an index linked revenue, the Smeaton BESS now benefits from two ‘protections’ under the ongoing grid connection reform and the Clean Power 2030 plan.
This confidence comes as the National Energy System Operator (NESO) has committed to bringing projects online ahead of their CM delivery year. This suggests that the Smeaton BESS could be operational before 2029.
Furthermore, the strategic location of the project in Scotland means it aligns with the spatial energy plans developed to align with clean power targets.
There are significant transmission constraints between Scotland and England, with high amounts of wind generation in the former that cannot be transported down south. As a result, NESO pays wind power plants to reduce or cease generation at a high cost.
Kona notes that the upcoming closure of the Torness nuclear power station, due to happen in 2028 (around when Smeaton could come online), makes the BESS all the more critical for storing and dispatching excess renewable energy.
The developer also said strategic investment discussions are currently ongoing.
Andy Willis, founder of Kona Energy, said the £40 million capacity market contract is “testament to the project’s quality and national importance”.
Willis added: “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 in order to deliver this project on the ambitious scale we are aiming for.”
