Energy trading company Danske Commodities has signed its first optimization agreement for a battery storage asset in the UK. The move is intended to support the strategic ambition of the asset’s owner, Equinor, to create a profitable renewables business by integrating battery storage assets in its portfolio in selected power markets.
Danske Commodities has announced that it has signed a three-year agreement for the 25 MW battery storage asset, called Blandford Road.
Under the agreement, the company will provide market access, balancing, and optimization services for Blandford Road. The energy trader intends to utilize its fully automated algorithmic setup to maximize returns across wholesale and ancillary services markets.
Storage is planned to be operational in Autumn 2023
The asset is owned by Equinor and is developed and operated by Noriker Power Limited, a British market leader in developing and operating energy assets, partly owned by Equinor, with a 45% stake, Danske Commodities said.
Once operational, Blandford Road will have a capacity of 25 MW and help provide flexibility to intermittent power generation in the UK renewables market. It is planned to be online in Autumn 2023.
Kring: The firm will provide much-needed flexibility to intermittent power generation
Anders Kring, VP, Head of European Power Trading at Danske Commodities, stressed that the firm will apply its trading expertise to optimize battery storage assets and help provide much-needed flexibility to intermittent power generation.
“We currently manage the biggest portfolio of batteries in Denmark, and we look forward to building on this experience as we take on our first battery in the UK,” he said.
Danske Commodities currently has a contract portfolio of 2,000 MW of renewables assets in the UK, including a proportion of the offtake from the world’s biggest offshore wind farm, Dogger Bank.