A joint venture between battery storage projects developer Penso Power and maritime company BW Group will build 3GWh of energy storage capacity in the next three to five years in the UK.
BW Group will provide the capital required to implement the projects as well as acquire a stake in Penso Power.
The new partnership aims to expand the UK’s portfolio of energy storage capacity, a vital ingredient to accelerate the energy transition.
Richard Thwaites, CEO of Penso Power, said: “We consider energy storage to be a key enabler of the energy transition. We view the deal – considerably larger than anything else seen in the UK to date – as transformational for ourselves and indeed the UK market.”
The development comes at a time the UK is exploring various avenues to expand its energy storage deployment, a development that will help accelerate the use of renewable energy and unlock the benefits of demand-side management and flexible energy for grid reliability and a carbon-neutral energy system.
During the Global Investment Summit, Boris Johnson, the UK’s prime minister struck a deal with billionaire Bill Gates which will see £400 million ($551.1 million) being invested in technologies including energy storage and hydrogen to speed up the energy transition.
Johnson, said such technologies “have massive potential but are currently underinvested in, by comparison with some others.”
Partnerships such as the one between the UK government and Bill Gates and between BW Group and Penso Power are vital to speed up the shift from traditional energy technologies to modern and smart solutions to mitigate climate change.
According to research firm Deloitte, increasing the availability of financial incentives for storage projects will help boost deployment.
In its Net Zero Strategy launched this week, the UK government committed an extra £500 million ($689.1 million) in incentives towards innovation projects that aim to develop green technologies such as energy storage.
However, Deloitte states that factors including lack of standardisation, incomplete definition of energy storage and outdated regulatory policy and market design will hinder the growth of the energy storage market.