Independent developer Kona Energy has secured a significant Capacity Market contract, valued at approximately £40 million, for its flagship Smeaton battery energy storage system (BESS) project in East Lothian, Scotland.

The 228MW/456MWh Smeaton project, now considered one of the UK's most advanced grid-scale energy storage developments, recently received planning consent, with this contract marking another major milestone. The Capacity Market agreement was obtained through the government's T-4 auction mechanism, designed to guarantee electricity supply during periods of high demand.

Strategically located in East Lothian, the Smeaton BESS is expected to play a vital role in bolstering Scotland's energy resilience and mitigating grid constraints. This is particularly relevant given the planned closure of the Torness nuclear power station before 2030 and existing transmission bottlenecks between Scotland and England. The facility aims to store surplus renewable energy, releasing it back to the grid when needed most, thereby helping to reduce constraint costs.

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The project's viability is further strengthened by securing two 'Protections' under the ongoing Grid Connection Reform and Clean Power 2030 plan. This includes a commitment from the National Energy System Operator (NESO) to facilitate grid connection ahead of the project's Capacity Market delivery year.

Andy Willis, Founder of Kona Energy, commented: “This is a defining moment for Kona Energy and the Smeaton project. Securing a £40 million Capacity Market contract is a testament to the project's quality and national importance. The Kona team is wholly supportive of both Grid Connection Reform and Clean Power 2030, this contract not only provides an attractive index lined revenue contract but as importantly a de-risked grid connection which is crucial to investor confidence."

He added: "Smeaton will help tackle the UK's growing grid challenges by transforming wasted renewable energy into a valuable resource. As we advance towards delivery, we are actively engaging with select strategic partners who can bring the right expertise and capital to maximise the project's potential - we are open for further discussions with third parties who can bring extensive value and capital in order to deliver this project on the ambitious scale we are aiming for."

Kona Energy, highlighted as one of the few independent developers to secure such a T-4 contract recently, is now progressing the project towards delivery. Detailed design work is currently underway with partners including Scottish Power Transmission and other key supply chain members. The company is actively seeking strategic investment to support the next phase.