Shell signs off-take deal for Europe's biggest battery of 100 MW

Shell Energy Europe Ltd will provide back-up electricity to the UK grid through purchasing power from a 100-MW battery storage facility that will be installed in England.

The unit of oil and gas giant Royal Dutch Shell Plc (AMS:RDSA) announced on Monday it has agreed a multi-year power purchase agreement (PPA) for what it says will become Europe’s largest energy storage facility. The so-called Minety power storage project in Wiltshire, southwestern England, is backed by two Chinese groups -- China Huaneng Group and sovereign wealth fund CNIC.

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The off-take deal will support the construction of two 50-MW battery systems that will provide balancing services to the UK power grid and “optimise the use of renewable power in the area,” once operational. Their commissioning is scheduled for the end of this year. “Projects like this will be vital for balancing the UK’s electricity demand and supply as wind and solar power play bigger roles in powering our lives,” said David Wells, Shell Energy Europe’s vice president.

Limejump, a subsidiary of Shell Energy Europe, will “optimise” the contracted power through the use of its virtual power platform which aggregates energy from a network of batteries in the UK.