Sembcorp Energy UK (SEUK) has secured a contract for 150MW of two-hour duration battery storage in the provisional results for the latest Capacity Market auction.
SEUK has won a 15-year contract for the 150MW/300 megawatt-hour battery in the T-4 2025/26 Capacity Market auction, which is slated to become operational by 2023.
The 150MW tranche is part of a planned total 360MW battery energy storage system announced in December 2021.
Adding to its existing 120MWh battery pipeline, SEUK will have a total battery capacity of 420MWh in the UK.
Batteries can supply power and other services to the national grid within a few milliseconds, providing a secure and stable energy system that will aid the UK’s low-carbon transition.
Sembcorp Industries UK and Middle East chief executive Andy Koss said: “SEUK’s battery portfolio expansion will help ensure the resilience of the electricity network that will enable the continued growth of renewables and help the UK decarbonise.”
This announcement is not expected to have a material impact on the earnings per share and net asset value per share of Sembcorp Industries for the financial year ending 31 December 2022.