Bess Shell Trading Co Ltd
Global energy storage owner-operator BW ESS and battery storage developer Penso Power have signed a seven-year tolling agreement with Shell Energy Europe Limited for
What is shell's Bess deal with Penso power?
The deal is the first long-term tolling agreement for a single BESS asset in the UK, providing a new revenue structure template for future BESS opportunities across Europe. Under the agreement, Shell will trade the BESS into a range of ancillary services and wholesale markets, paying BW ESS and Penso Power a fixed fee.
Will shell pay the owners a fixed fee for Bess?
Shell will pay the owners a fixed fee for the BESS and keep all the upside. It may be the first tolling deal of this size for a single asset, but the first major UK tolling deal announced in the UK was by Gresham House and Octopus Energy for a 568MW portfolio of operational projects earlier this year.
What is shell doing with BW ESS & Penso power?
Under the agreement, Shell will trade the BESS into a range of ancillary services and wholesale markets, paying BW ESS and Penso Power a fixed fee. The 100MW/330 megawatt-hour (MWh) Bramley BESS site, currently under construction in Hampshire, UK, is also the first project in Europe to deploy Sungrow’s PowerTitan 2.0 liquid-cooled BESS system.
What is a Bess tolling deal?
The deal is the first announced long-term tolling agreement for a single BESS asset in Great Britain, creating a template for a new revenue structure that will help to unlock energy storage market opportunities across Europe.
What is Bess & how does it work?
The technology combines a 2.5MW power conversion system and a 5MWh battery into a single container, allowing the site to take up a relatively small area. The site is to be commissioned in the fourth quarter of 2024 and is expected to be the longest duration BESS site in the UK.
Why is shell energy trading a good investment?
According to Rupen Tanna, head of power and systematic trading at Shell Energy Europe, because tolls are a feature of conventional energy trading, Shell has “the trading experience to add significant value, while supporting the UK’s ongoing energy transition”.