Pioneering 7-year fixed-price tolling agreement secures revenues for 100MW / 330MWh Bramley project under development by BW ESS and Penso Power
6 August 2024, LONDON — Global energy storage owner-operator BW ESS and its partner, Penso Power, have signed a seven-year tolling agreement with Shell Energy Europe Limited (Shell) for their Bramley Battery Energy Storage System (BESS) currently under construction in Hampshire, UK.
The deal is the first announced long-term tolling agreement for a single BESS asset in Great Britain, creating a template for a new revenue structure that will help to unlock energy storage market opportunities across Europe.
The fixed-price tolling agreement provides revenue certainty for BW ESS and Penso Power while Shell will trade the Bramley BESS into a range of ancillary services and wholesale markets.
The 100MW / 330MWh Bramley site is the first project in Europe to deploy Sungrow’s PowerTitan 2.0 liquid cooled BESS – a system that combines a 2.5MW Power Conversion System using integrated string inverters and a 5MWh battery into a single container. This has enabled BW ESS and Penso Power to deliver a 330MWh project within a relatively small project footprint. Bramley is expected to be the longest duration BESS in the UK at the time of commissioning, which is expected in Q4 this year.
“We are thrilled to partner with the highly experienced energy trading team at Shell on this project,” said Erik Strømsø, CEO of BW ESS. “Bramley showcases our commitment to advancing energy storage solutions that set the bar for the wider market – while pioneering new models for project financing and operation.”
“This tolling agreement, which has been some time in the making, demonstrates the attractiveness of longer-duration, higher-performance battery systems. It not only secures long-term revenues for Bramley, but also helps enable the market’s shift away from short-term frequency response towards load shifting.”
Richard Thwaites, CEO at Penso Power, said: “We are pleased to continue our relationship with Shell with another innovative contract structure to de-risk revenues and support project funding. The floor contract we agreed with Shell on our Minety battery storage project back in 2020 became a template for the industry and this tolling agreement for Bramley breaks new ground. It represents a coming of age for the battery energy storage sector.”
Rupen Tanna, Head of Power and Systematic Trading at Shell Energy Europe, added: “The Bramley battery system is one of the most sophisticated longer-duration assets under construction in the UK and will provide us with unmatched capabilities for portfolio optimisation.”
“Tolls have been a feature of conventional energy trading for many years. By extending the business model to battery storage, Shell has the trading experience to add significant value, while supporting the UK’s ongoing energy transition. The experience gained through these early tolling contracts will be invaluable to the wider market.”
The agreement commences upon commissioning of the Bramley project in Q4 this year. Ashurst LLP acted as legal advisors to BW ESS and Penso Power and Shell used its own in-house legal team.
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About BW ESS
BW ESS is a global energy storage owner-operator, moving with conviction to develop, fund and operate market-leading energy storage projects across multiple countries. Working with strategic partners in the UK, Italy, Sweden and Australia, the business has grown a multi-gigawatt development pipeline, with over 500MWh of projects currently in construction. As an active investor with development exposure, BW ESS has a strategy to hold assets for the long-term, taking a hands-on approach to unlock value throughout the energy storage asset lifecycle.
Part of BW Group, BW ESS has access to decades of experience in energy infrastructure investment, delivery and operation – and the scale and connections needed to move the needle in global energy storage. To find out more, visit: https://bw-ess.com/
About Penso Power
Penso Power creates, deploys, owns, and manages large grid-scale battery energy storage projects in the UK, Italy and Australia. Penso Power and BW ESS announced a joint venture agreement in October 2021 that will see BW ESS commit capital to fund the build out of Penso Power’s UK project pipeline totalling more than 3GWh.
To find out more, visit: https://www.pensopower.com/
Media contacts:
Laurenz Krumbacher
Tamarindo
Email: [email protected]
BW ESS:
Hana Schoon
Email: [email protected]