Camilla connected to the National Grid in December 2023 and progressed successfully through its final phases of commissioning early this year. Camilla is a 50MW 1 hour lithium-ion battery located in Fife, Scotland, which has been pre-configured for augmentation to 2 hours. Camilla is the first asset to be delivered through the Company’s £300m Joint Venture Partnership programme with Eelpower Limited.
The Company is encouraged by the recent progress made by the National Grid as it continues to make improvements in the dispatching capability of batteries in the Balancing Mechanism and the introduction of additional reserve products. This is positive for new operating assets entering the market at this point, such as Camilla, as it represents additional revenue opportunities.
On 20 February 2024 National Grid ESO published the provisional results of its T-1 Capacity Market Auction for delivery in 2024/25. Camilla successfully bid and secured a contract with a clearing price of £35.79/kW. The contract was secured with a derated capacity of 5.659MW and is expected to generate £202k (£4k/MW on a total capacity basis) of additional contracted revenue for the period 1 October 2024 through to the end of September 2025.
The Company’s disciplined approach to capital allocation focuses on accretive investment activity, consistent with the Company’s investment objective of providing ordinary shareholders with attractive risk-adjusted returns, principally in the form of regular dividends.
Helen Mahy, Chair of NextEnergy Solar Fund Limited, commented:
“I am pleased that NESF has achieved commercial operations of its first standalone energy storage asset, Camilla a 50MW battery in Fife Scotland. Camilla is conveniently located adjacent to the Glenniston substation and is already connected to the National Grid, supporting constraints on Grid interconnector capacity to areas of high demand. Energy storage assets will play a crucial role in the UK’s transition to net zero and we are proud to play a central role in achieving this.”
Michael Bonte-Friedheim, Founding Partner and CEO, NextEnergy Group, commented:
“I’m delighted to confirm that Camilla’s energisation increases NESF’s total installed net capacity to over 1GW, alongside the recent energisation of NESF’s first two international solar co-investments. Expanding into energy storage complements NESF’s existing large portfolio of solar assets on a standalone and co-located basis and provides multiple diversification benefits for shareholders.”
Mark Simon, CEO of Eelpower, commented:
“Eelpower is very pleased that the 50MW project at Camilla Farm has entered commercial operations and are proud to have delivered it with our partners NESF. We look forward to Camilla joining the market-leading assets we have commissioned over the last seven years, delivering on the promise that flexible battery assets represent for Scotland and supporting the transition to net zero in Great Britain.”
Download the full RNS here
