SSE Energy Markets has made a deal with Copenhagen Infrastructure Partners (CIP) to optimise two battery energy storage system (BESS) projects in Scotland.
SSE Energy Markets will optimise the 500MW Devilla project, located in Kincardine, near Fife, as well as the 500MW Coalburn 2 project in South Lanarkshire. SSE Energy Markets had previously agreed to optimise CIP’s Coalburn 1, the 500MW first phase of the Coalburn development, which is located on top of a former coal mine.
Both of these projects are being developed by CIP in partnership with BESS developer Alcemi, and both reached final investment decisions in January of this year.
The Devilla development was granted planning consent by the Scottish government in December of 2023. The project is expected to come online in October 2027, with construction expected to start soon, according to Alcemi.
Meanwhile, the Coalburn 2 project was granted planning permission in January 2024, and is expected to reach full commercial operations by August 2027. The first phase of the Coalburn development, Coalburn 1, is expected to come online in October of this year.
Both of the assets will be optimised through SSE Energy Markets’ Enhance trading platform, and will be traded across a variety of grid flexibility and wholesale markets according to SSE Energy Markets. The deal also seeks to provide income stability for CIP by the setting of a ‘floor price’ for the ten-year period the deal covers, ensuring that a minimum income is guaranteed for CIP.
This is not the first time that CIP and SSE Energy Markets have collaborated. The two firms have previously worked together on the Slough Multifuel energy-from-waste facility, which was developed by the firms under a 50-50 joint venture and began commercial operations last year. The two companies are also co-developing the Ossian commercial-scale floating offshore wind project, located off the Scottish coast, in a joint venture with Marubeni Corporation.
Gordon Bell, managing director of SSE Energy Markets, noted that this latest optimisation deal makes SSE Energy Markets responsible for optimising a combined 1.5GW of BESS capacity on behalf of CIP. He stated that “SSE has built a strong and enduring relationship with CIP which continues to generate significant value”, adding that the firm’s expertise can maximise the role these assets will play in supporting the grid.
Malcom Paterson, commercial director for BESS at CIP agreed, adding that the deal will enable the deployment of low-cost clean energy at a much faster pace.
