Power producer ContourGlobal has acquired the Wallace large battery storage project in Ayr from several sellers including New Energy Partnership Limited, a UK developer.
ContourGlobal, fully owned by US fund KKR, is expected to invest hundreds of millions of pounds into the project it plans to develop over the next two years.
“ContourGlobal has entered the United Kingdom through the acquisition, subject to the fulfilment of certain conditions, of a 500 MW / 2,000 MWh battery energy storage project located in Ayr, Scotland, from several sellers including New Energy Partnership Limited, a UK developer,” said ContourGlobal.
“Wallace, which features four hours of storage duration, represents one of the largest BESS developments in the UK and marks a significant milestone in ContourGlobal’s European expansion into markets with attractive macroeconomic fundamentals, mature regulatory frameworks, and strong demand from power-intensive industries and digital infrastructure.
“This will be the largest BESS project in ContourGlobal’s portfolio by energy storage capacity, following the recent commissioning of a hybrid asset featuring a 200 MW / 1,300 MWh BESS in Chile. In the coming months, the company is also preparing to start construction of a hybrid solar-plus-storage project, sized at 360 MW / 1,400 MWh, in the United States (Arizona).”
ContourGlobal CEO Antonio Cammisecra said: “Entering the United Kingdom is a key step in our strategy to become a leading independent power producer in renewables and energy storage.
“The UK combines a world-class regulatory environment, a deep and liquid energy market, and a critical and growing need for flexible storage assets to support the integration of its wind generation capacity.
“Scotland, in particular, offers a compelling opportunity: the region produces a significant surplus of renewable energy that faces grid constraints in reaching demand centers further south, and large-scale battery storage is key to unlocking that value.
“We are proud to add the UK to our growing portfolio, and we expect to significantly expand our presence with a diversified pipeline of development opportunities in renewable generation and energy storage.”
ContourGlobal said Wallace, with 500 MW of power capacity and 2,000 MWh of energy storage capacity, equivalent to four hours of continuous discharge, is designed to charge during periods of excess renewable generation and discharge when the system needs flexibility.
“As the region’s abundance of renewable power, cooler climate and interest in digital infrastructure attracts more power-intensive sectors, including data center developers, projects such as Wallace will play an increasingly important role in supporting grid stability and reducing clean energy curtailment,” said ContourGlobal.
“The project is expected to participate in the upcoming UK Capacity Market auction, and combine contracted arrangements with merchant exposure in a market with strong appetite for tolling and route-to-market arrangements.
“The site is also well positioned to capture value through the UK’s Balancing Mechanism, where Scottish BESS projects can benefit from strong dispatch activity. Wallace has full planning consent, a secured land option , and allocated Gate 2 status under the UK grid connection reform process.”