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Centrica battery storage and LNG plans support UK energy security
19/7/2023
A planned new battery storage project in Scotland and the signing of a major US LNG supply agreement will help improve the UK’s energy security, according to Centrica.
Centrica Business Solutions is to build a 65 MW two-hour battery storage plant in Perthshire, Scotland, its largest battery storage project to date. The site in Abernethy is located near a connection for North Sea offshore wind farms and will help manage grid capacity by charging when demand for power is low, and discharging when demand is at its highest.
Once connected to the grid in 2028, the battery will be able to store enough electricity to power 130,000 homes for an hour. The discharge could happen up to four times a day.
‘Capturing and storing energy for use when and where it’s needed will play an essential role in improving the UK’s energy security and maximising the potential of offshore wind farms in the North Sea,’ states Centrica. The project forms part of the company’s plan to deliver 1 GW of low-carbon energy assets and will join the 30 MW battery storage plant in Aberdeenshire, which is set to go live in mid-2024.
Commenting on the project, Gregory McKenna, Managing Director at Centrica Business Solutions, says: ‘If the country wants to achieve a reliable, secure and decarbonised power system, then battery storage sites must be the rule rather than the exception… However, the five-year wait for a connection date shines a light on the challenges renewable energy projects like this continue to face with the grid being totally constrained. To keep the net zero transition on track, it’s important that we work to speed up grid connections and avoid further delays to new and existing projects.’
Major LNG supply agreement
Meanwhile, Centrica and Delfin Midstream have signed a long-term sale and purchase agreement for 1mn t/y of LNG for 15-years on a free-on-board (FOB) basis at the Delfin deepwater port located 40 nautical miles off the coast of Louisiana. The agreement will see Centrica take delivery of around 14 LNG cargoes per year and could provide enough energy to heat 5% of UK homes for 15 years. Operations and first LNG are expected to commence at the Delfin deepwater port in 2027.
The deal, with a market value of $8bn, marks an additional move by Centrica to build further resilience in the UK’s energy security. It follows a three-year supply agreement with Equinor that will heat 4.5mn UK homes through to 2024 and the reopening of the Rough gas storage facility in October 2022. Rough now provides half of the UK’s total gas storage capacity, with the potential to store over 50bn ft3 of gas, enough to heat almost 10% of UK homes throughout winter.
Commenting on the agreement, Chris O’Shea, Group Chief Executive, Centrica, says: ‘Natural gas is an essential transition fuel in the move to net zero and securing international agreements such as this are vital to the UK’s energy security.’
