Gresham House Energy Storage Fund completes acquisition of 50 MW energy storage facilities

Gresham House Energy Storage Fund (GRID) has acquired two operational battery storage facilities totaling 50 MW from VLC Energy, a joint venture between Low Carbon and VPI Immingham a subsidiary of Vitol Group, for GBP29.2 million (US$39 million). The acquisition comprises a 40 MW facility at Glassenbury, Kent, and a 10 MW facility at Cleator Moor, Cumbria that were commissioned in January 2018.

The plants are two of the UK's largest energy storage facilities. Their combined 50 MW capacity represents a quarter of National Grid's 2016 Enhanced Frequency Response (EFR) capacity.

Both Glassenbury and Cleator achieved 'G59' commissioning in late 2017 and have EFR contracts to January 2022 awarded following National Grid's 2016 EFR auction and provide sub-second responses to frequency deviations on the national grid. These facilities also benefit from 15-year 2016 Capacity Market contracts. The facilities are backed by 30-year site leases (c.28 years remaining).

In addition, the 40 MW Glassenbury facility has significant potential to offer Reactive Power (RP) revenue-earning services.