E.ON joins with Quinbrook to invest in its largest battery storage project

E.ON and global investment manager Quinbrook Infrastructure Partners are jointly investing in the construction of a large-scale battery storage project for the UK.

Two large-scale storage facilities, each with a capacity of 230 megawatt-hours and an output of 115 megawatts, will be built on the site of the former Uskmouth coal-fired power station in Newport, south Wales.

Under the agreement announced today, E.ON will acquire one of the storage units, which are already under construction. The storage facility will provide energy balancing services – adding extra power into the grid when demand is high or supply falls, or recharging the battery at times when supply exceeds demand – from the first quarter of 2025 and will also be used in the wholesale market. The battery system holds the same amount of energy as about 35 million smartphones.

“This is a massive investment for E.ON in the UK’s energy system and an important recognition of the enormous potential for battery solutions in the UK,” said Chris Norbury, E.ON UK Chief Executive. “Battery energy storage sites will play a significant role in the future of the nation’s power provision and specifically in supporting ever greater sources of renewable energy.

“Battery plants around the country can allow us to make best use of all renewable energy sources by harnessing the energy and having it ready for use whenever it’s needed – increasing the share of renewable energy on the grid, helping secure supplies on the grid and making energy more affordable for our customers.”

“E.ON shares our commitment to sustainable initiative goals and recognises the meaningful impact that regeneration projects like Uskmouth, a former coal stockyard, can make to the delivery of the UK Government’s Levelling Up ambitions,” said Keith Gains, Managing Director and UK Regional Lead of Quinbrook. “We are pleased to welcome E.ON and look forward to working together to complete construction of this milestone project, which will be a key contributor to achieving net zero targets.”

The Uskmouth project is a key milestone in the redevelopment and regeneration of the Uskmouth site into a sustainable energy park that will support innovative future industry.

Construction began in November 2023, with Quinbrook and E.ON now jointly developing the project. Both have committed to relying  on local contractors and specialists wherever possible. The project supported about 130 jobs in the region in 2023 and is expected to create another 140 jobs in 2024.

The project uses the existing infrastructure of the former coal-fired power station including the grid connection, industrial water supplies and railway access. This will minimise the impact of construction activities on the local area and reduce road traffic.

Flexible assets such as battery energy storage systems play a key role in the energy transition. As renewable sources make up more of the UK’s energy mix, power generation will be more dependent on weather, time of day and season – as well as the patterns of demand from customers. This requires more flexible electricity infrastructure to ensure security of supply in the future.

Battery storage systems, with their wide range of applications, help to stabilise the grid by balancing supply and demand when needed, allowing greater use of renewable power sources and less reliance on fossil fuel power plants. They also help companies such as E.ON to better manage price fluctuations in the electricity market, benefiting customers through lower costs.

Chris Norbury added: “The UK power system will need a significant increase in battery installations to provide stability and flexibility and support an ever-greater amount of  decarbonised power generation if we are to meet our 2030 sustainability targets. This is just one step we at E.ON are making to deliver the energy transition and drive a more sustainable future for our customers at home, in business, and across whole communities.”

E.ON already operates a 10MW battery at its Blackburn Meadows renewable energy plant near Sheffield and plans to invest further into battery technology in the UK.