E.ON and Quinbrook to Invest in Large-scale Battery Storage Project
E.ON and the global investment manager Quinbrook Infrastructure Partners are jointly investing in the construction of a large-scale battery storage project in the UK. Two large-scale storage facilities, each with a capacity of 230 megawatt-hours and an output of 115 megawatts, will be built on the site of a former coal-fired power station in Uskmouth, South Wales. Under the agreement announced on March 19, E.ON acquires one of the two storage units currently under construction – and thus 50 percent of the project’s future storage capacity. It is the first battery storage system of this size acquired by E.ON.
The storage facility will provide balancing energy from the first quarter of 2025 and will also be used in the wholesale market. The capacity of the system is equivalent to around 35 million smartphones.
“E.ON shares our commitment to sustainable development goals and recognises the meaningful impact that large scale regeneration projects like Uskmouth, a former coal power station stockyard, can make to the delivery of the Government’s Levelling Up ambitions,” commented Keith Gains, Managing Director and UK Regional Lead for Quinbrook. “We are pleased to welcome E.ON as a partner and look forward to working together to complete construction of this milestone project, which will be a key contributor to achieving the UK’s net zero targets.”
„Quinbrook sees the energy transition as an opportunity for sustainable development and growth and hence is an ideal partner for us”, said Nadia Jakobi, CEO E.ON Energy Markets. „The energy transition is about more than climate protection. It’s about keeping energy prices affordable and creating security of supply while staying competitive. Flexible large-scale storage solutions play a key role in achieving this goal. This is where E.ON intends to invest in the future. We are pleased to take an important step in this direction with the project in Uskmouth. Further projects are planned in the UK, Germany, and the Netherlands.”
A development project strengthening the economy
The Uskmouth project is a key milestone in the planned redevelopment and regeneration of the Uskmouth site into a sustainable energy park that will support innovative future industry. Following the start of construction in November 2023, Quinbrook and E.ON will continue to jointly develop and construct the project. The partners will be relying in particular on the involvement of local contractors and specialists. Furthermore, the project uses existing infrastructure of the former coal-fired power station, such as the grid connection, industrial water supplies and railway access. This will minimise local impacts from construction activities and reduce road traffic. The project supported approximately 130 jobs in the region in 2023 and is expected to create another 140 jobs in 2024.
Large-scale storage systems reduce costs and stabilise the grid
Flexible assets such as battery energy storage systems play a core role in the energy transition. As renewable energy sources continue to expand, their share of the power mix will increase, making power generation more dependent on weather, time of day and season. This requires a comprehensive flexibilization of the electricity infrastructure to ensure security of supply in the future. Battery storage systems, with their wide range of applications, help to stabilize the grid by smoothing out fluctuations and preventing power overloads. Another aspect that has received less attention is their positive impact on energy price management. Battery storage systems help utilities like E.ON to better mitigate price fluctuations in the electricity market. This, in turn, benefits customers through lower costs.
