NatPower UK secured up to £60 million in funding from European infrastructure bank Kommunalkredit to develop large-scale battery storage facilities known as GigaParks.
The company’s ambitious portfolio includes three 1-gigawatt GigaParks planned for North Yorkshire and Tees Valley, with projects totalling 100 gigawatt-hours (GWh) in various stages of development.
To put this scale in perspective, these facilities are expected to meet the entirety of the UK’s 2030 storage target. Storage is vitally important for achieving energy transition goals due to the challenges of connecting renewable power infrastructure to the grid.
The funding deal represents a significant shift in how large-scale battery energy storage systems (BESS) can be financed. These facilities will play a crucial role in managing the UK’s growing renewable energy infrastructure by storing clean energy during low-demand periods for use during peak times.
NatPower UK’s GigaParks are designed to address two key challenges in Britain’s energy transition: managing intermittent renewable energy supply and reducing dependence on imported gas. The projects are expected to contribute to lowering overall energy costs for consumers while supporting the nation’s clean energy goals.
“The UK’s energy transition will provide huge opportunities for economic growth, generating tens of thousands of green jobs, creating sustainable communities and bringing down bills, and attracting a significant portion of the trillions that will be invested in the sector each year globally,” said Stefano D. M. Sommadossi, CEO at NatPower UK
“With huge changes currently being made to the connections process, the UK’s energy grid will require an acceleration of private capital to ensure we can deliver the right projects as quickly as possible. Our agreement with KommunalKredit signals that this is well underway, showing confidence from the market not only in the opportunity the UK presents, but also in NatPower UK’s portfolio and strategy for delivery.”