SSE Energy Markets has signed a deal with Copenhagen Infrastructure Partners (CIP) to optimise two major battery energy storage systems being developed in Scotland.
CIP recently announced final investment decisions on its Coalburn 2 and Devilla battery projects which have a combined capacity of 1GW.
Under the 10-year agreement, SSE Energy Markets will carry out all optimisation and route-to-market services on behalf of CIP for the two sites.
It builds on an earlier agreement with CIP to optimise Coalburn 1, the 500MW first phase of the large-scale development in South Lanarkshire.
The agreement will see all assets optimised across a variety of grid flexibility and wholesale markets via SSE Energy Markets’ Enhance trading platform.
The deal will also provide income stability through the delivery of a ‘floor price’ for the 10-year period, ensuring minimum income levels are guaranteed for CIP.
This marks the latest collaboration between SSE and CIP.
SSE and CIP are co-developing the Ossian commercial-scale floating offshore wind project off the coast of Scotland in a joint venture alongside Marubeni Corporation.
Gordon Bell, managing director of SSE Energy Markets, said: “SSE has built a strong and enduring relationship with CIP which continues to generate significant value.
“This latest collaboration means our trading centre of excellence will be responsible for optimising a combined 1.5GW of battery capacity on behalf of CIP, ensuring our expertise can maximise the role these assets will play in supporting the system.
“This agreement with CIP underscores our recognised ability to optimise third party assets in addition to those owned and operated by SSE.
“We look forward to working together on both Coalburn 1 & 2 and Devilla when they enter operation.”
Malcolm Paterson, commercial director – BESS at CIP, added: “CIP’s latest investments in Scottish battery energy storage will increase our BESS portfolio in the UK to a capacity of 1.5GW.
“This supports the UK’s pursuit of a clean power system by 2030 and the goal of delivering a net zero carbon economy by 2050.
“These two new projects will extend our existing relationship with SSE on Coalburn 1, enhancing energy security and providing the grid with much-needed flexibility. In turn, this enables the deployment of additional low-cost, clean, green renewable energy even quicker.”