Gresham House fund completes acquisition of 50 MW energy storage projects in Cumbria and Kent

Gresham House Energy Storage Fund has completed the acquisition of two operational battery storage facilities totaling 50MW from VLC Energy for GBP29.2 million (US$37.8 million). The acquisition increases the total capacity of operational utility-scale battery storage projects in the Fund’s investment portfolio to 125 MW.

The facilities comprise a 40 MW facility at Glassenbury, Kent, and a 10 MW facility at Cleator Moor, Cumbria that was commissioned in January 2018.

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

The acquisition increases the total capacity of operational utility-scale battery storage projects in the Fund’s portfolio to 125MW, this figure increasing to 174MW when the previously announced acquisition of the 49MW project, located at the Red Scar Business Park, is included. The Red Scar facility is currently undergoing commissioning, with the acquisition expected to complete in the near future.

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 40MW Glassenbury facility has significant potential to offer Reactive Power (RP) revenue-earning services, thanks to its location.