Photo: BW ESS
Energy storage owner and operator BW ESS and its partner, Penso Power, have signed a seven-year agreement with Shell Energy Europe Limited for the proposed 100 MW / 330 MWh Bramley battery energy storage system (BESS).
The deal between BW ESS, Penso Power, and Shell represents a new model for agreements in the development and operation of energy storage.
It 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, BW ESS said.
The Bramley Battery Energy Storage System is currently under construction in Hampshire in the United Kingdom.
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 announcement reads.
Bramley is expected to be the longest duration BESS in the UK at the time of commissioning,
According to Recharge, so far energy storage projects have been implemented with profit-sharing or floor agreements. The former envisages splitting profit from a battery between the owner and the operator. With the latter model, the operator guarantees a level of revenue for a battery asset. Above that level, profits are split through a profit-sharing agreement. Below it, the operator pays the difference to the owner.
BW ESS said the 100 MW / 330 MWh Bramley site is the first project in Europe to deploy Sungrow’s PowerTitan 2.0 liquid cooled BESS – a system that combines a 2.5 MW power conversion system using integrated string inverters and a 5 MWh battery into a single container.
It has enabled BW ESS and Penso Power to deliver a 330 MWh project with 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, the company added.
Strømsø: The tolling agreement helps enable the market’s shift away from short-term frequency response towards load shifting
CEO of BW ESS Erik Strømsø said that Bramley showcases his company’s 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,” Strømsø explained.
Tanna: Tolls have been a feature of conventional energy trading for many years
According to Richard Thwaites, CEO of Penso Power, the floor contract that the firms agreed with Shell on their Minety battery storage project back in 2020 became a template for the industry, and the new tolling agreement for Bramley breaks new ground. It represents a coming of age for the battery energy storage sector, he added.
Rupen Tanna, Head of Power and Systematic Trading at Shell Energy Europe, noted that 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 energy transition, he stressed.
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