UK-based battery storage developer Kona Energy has landed a £40 million ($51.6 million) capacity market contract for its 228MW/456MWh Smeaton battery energy storage system (BESS) in East Lothian, Scotland. This deal marks a significant milestone for the company and reinforces the project’s role in bolstering the UK’s energy security and renewable integration efforts.
Strengthening the Grid Amidst Energy Transition
The Smeaton project is supported by two key protections under the Grid Connection Reform and Clean Power 2030 plan. These measures enhance the certainty of its grid connection and long-term viability, crucial factors for investors and stakeholders alike.
Through the government’s T-4 auction, designed to ensure electricity availability during peak demand, Smeaton secured its capacity market contract. With the impending closure of the Torness nuclear power station before 2030 and persistent transmission constraints between Scotland and England, the project’s strategic importance cannot be overstated.
Addressing Key Energy Challenges
The Smeaton BESS aims to:
- Store surplus renewable energy and release it when needed.
- Reduce constraint costs linked to energy transmission bottlenecks.
- Support the UK’s transition to a net-zero energy system.
Andy Willis, founder of Kona Energy, called the contract a “defining moment” for both the company and the Smeaton project. He emphasized that the agreement not only provides a stable, index-linked revenue stream but also mitigates grid connection risks, making it more attractive to investors.
Next Steps and Strategic Partnerships
With the contract secured, Smeaton is moving into its next phase of development. Detailed design work is already in progress in collaboration with Scottish Power Transmission and key supply chain partners. Meanwhile, Kona Energy is actively seeking strategic partners to help bring the project to completion at the ambitious scale envisioned.
Willis stated: “As we move forward, we are engaging with select strategic partners who can bring the right expertise and capital to maximize the project’s potential. We are open to further discussions with third parties who can add significant value and investment to help us deliver this landmark project.
