Downing will construct and manage a transmission system connected utility-scale battery asset in the UK

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Downing LLP invests in a greener future with landmark deal (Credit: Horst Tinnes from Pixabay)

Investment management firm, Downing LLP (“Downing”), is delighted to announce that it has finalised the selection of its co-funding partner and entered into agreements for the supply of the battery storage solution, the balance of plant and the route to market and trading arrangements for its transmission system connected 50MW/53MWh battery storage project. The deal represents Downing’s first front-of-the-meter battery asset and is one of the largest in the UK.  Grid connection works are already largely complete, and the project is expected to connect to the grid and begin operations in August 2021.

This project is Downing’s second investment in the sector, following the installation of a 3MW battery storage system at Arsenal Football Club’s stadium, and marks the first step in a wider initiative to build a portfolio of energy storage assets.

The project connects directly to National Grid’s transmission system and the ambition for the second phase of the project is to develop a private wire network and a utility scale electric vehicle charging super hub in Nursling, Southampton.

Talking about the project, Sean Moore, Investment Director at Downing commented: “Battery storage solutions are increasingly important as a renewable energy enabling technology in our ongoing mission to combat climate change. We are proud and excited to be spearheading this exciting deal with a cohort of industry leading suppliers and investors. We look forward to continuing our work with each stakeholder to bring the asset in operation later this year.”

Hyosung Heavy Industries corporation was selected as the Battery Energy Storage Solution provider following a competitive process. The project marks the South Korean supplier’s first transmission-connected battery project in the UK, following deployment of 1.8 GWh globally. Managing Director of Hyosung Heavy Industries UK, Danny Kim said, “Hyosung Heavy Industries are delighted to be a strategic partner to Downing on the Nursling project. We are proud to have engineered a system that meets the exacting standards of our valued customer. We see it as a key part of our UK and Global market growth in the ESS sector, supporting the energy transition of the UK power system.”

UK-based construction company, Arun Construction Services, has managed the construction of the site since inception and will be responsible for the final installation of the asset. The trusted construction partner has over 30 years’ sector experience with particular expertise working with transmission-connected assets. Managing Director, Philip Dedman comments “Arun Construction Services are delighted to have been awarded the role of Principal Contractor for Phase Two of the 50MW battery storage facility at Nursling NG Substation. We look forward to being back on site from mid-March 2021 to see the project through to completion, working in close collaboration with Downing.”

The bankability of the project has been improved through the involvement of leading energy and asset optimisation provider, EDF. Following an extensive tendering process, EDF was selected as the project’s route-to-market and trading partner for its industry leading market knowledge and trading capability. The project will enter into a seven-year contract providing access to a revenue floor.

Adam Clarke, Senior Manager PPA and Flexibility Solutions at EDF, said: “We are extremely proud Downing has selected EDF for a long-term partnership. We are excited to be working together on their first 50MW battery storage project which will see EDF provide access to all National Grid schemes, including Dynamic Containment, as well as fully supported trading and optimisation services in wholesale energy markets. As the balance between ancillary services and wholesale trading becomes more complex, our asset optimisation capability is vital to maximising revenues and protecting investment for our customers. We look forward to future opportunities to extend this collaboration and further reinforce our commitment to help Britain achieve Net Zero.

Downing have been advised in relation to this project by Osborne Clarke LLP (Legal), Ove & Arup Partners (Technical) and Mazars (Financial).

Downing looks forward to seeing the build of the asset come to fruition over the coming months in support of a greener and more stable future for UK energy infrastructure.

Source: Company Press Release