Kona Energy has secured a £40m Capacity Market contract for its flagship 228MW Smeaton battery energy storage project in Scotland.
The contract comes after planning consent was awarded for the battery energy storage system (BESS) in East Lothian.
The 228MW/456MWh BESS is positioned to be on the of the UK’s most advanced grid-scale energy projects.
The project benefits from two “Protections” under the ongoing Grid Connection Reform and Clean Power 2030 plan, with a commitment from NESO to bring projects online ahead of their Capacity Market delivery year.
This further enhances its grid connection certainty and long-term viability, Kona said.
The project secured its Capacity Market agreement in the T-4 auction – a government-backed mechanism ensuring electricity supply during peak demand.
Kona founder Andy Willis said: “This is a defining moment for Kona Energy and the Smeaton project.
“Securing a £40m Capacity Market contract is a testament to the project’s quality and national importance.
“Smeaton will help tackle the UK’s growing grid challenges by transforming wasted renewable energy into a valuable resource.
“As we advance towards delivery, we are actively engaging with select strategic partners who can bring the right expertise and capital to maximise the project’s potential.
“We are open for further discussions with third parties who can bring extensive value in order to deliver this project on the ambitious scale we are aiming for.”
Detailed design work is already underway in partnership with Scottish Power Transmission and key supply chain partners.