Danish renewable energy firm Ørsted, formally known as Dong Energy, announced on April 25 it is to install a 20MW lithium ion energy storage system in the UK after signing a deal with NEC Energy Solutions, a wholly owned subsidiary of NEC Corporation.
The Carnegie Road project near Liverpool will use NEC’s GSS grid storage solution to provide a range of grid-scale services to the UK’s transmission system operator National Grid.
The project is due to start this month and be completed and operational by the end of the year.
The site, which already has grid connection agreement and permits in place, was originally developed by Shaw Energi, which will support Ørsted in finishing the project.
A company official told ESJB: “In 2017, we made the decision to build a position in the developing energy storage market.
“This project is our first commercial-scale project and an important step on our overall energy storage journey. We expect the UK will be an important market for storage for us, but we are also looking at markets other than the UK, and generally grid balancing is relevant in many other markets for batteries.
“The primary revenue stream for the project will be the provision of a fast responding frequency regulation resource to the TSO to support system stability, but we’ll also look at the opportunities within time shifting and capacity market.”
Ryan O’Keefe, head of energy storage & solar at Ørsted, said: “Batteries have a very high frequency response capability, and we believe they’ll play an important role in providing services for the support of the stability of the power grid.
“The demand for these services is likely to grow in the UK as the country is expected to decommission large parts of its carbon-based generation fleet and introduce more renewables generation.”
Matthew Wright, managing director of Ørsted UK, said: “The future energy system will be completely transformed from what it is today, with a smarter, more flexible grid, balancing supply and demand with new technology and cleaner energy generation.”
The project strengthens ties between the two companies. In March the Bay State Wind project (a 50-50 partnership between Ørsted and US transmission company Eversource Energy) signed a letter of Intent with NEC to develop an 800MW wind and 55MW/110MWh energy storage project in the US, which we reported on here.
The Bay State Wind project, in the South Coast region of Massachusetts, is one of the world’s largest offshore wind and ESS systems designed for commercial-scale energy services.
In February, ESJB reported how Ørsted was to deploy Taiwan’s first ESS as the country’s institutions began testing how storage can support the grid, and transition to a higher renewable energy mix.