Limejump to optimize SSDC Opium Power's 90-MW UK battery storage capacity

Shell-owned asset manager Limejump and SSDC Opium Power have announced an optimization agreement for SSDC Opium's 90 MW of battery storage in the UK, the companies said March 31.

Battery storage is booming in the UK, where wholesale, ancillary service, and capacity market revenue streams reward fast response to growing volatility in supply.

"At 40 MW, Fareham is the UK's largest Battery Energy Storage System (BESS) that is owned by a local authority, and will be fully optimized by Limejump in the National Grid's Dynamic Containment market in April 2022," Limejump said.

Dynamic Containment is a new service set up by National Grid ESO to help manage post-fault fluctuations in grid frequency.

An additional 20 MW of battery storage at Fareham is to go live this summer and be optimized by Limejump.

Meanwhile some 30 MW of SSDC Opium storage capacity at Fideoak Mill, operational since 2020, is being managed by Limejump across several markets, including stacking Dynamic Containment with wholesale trades.

"These storage projects, and the others on our platform, are providing resilience and much needed flexibility services to the grid at a particularly crucial and pivotal time for the UK energy system," Limejump's Head of Renewables & Flexibility Genna Boyle said.

Boyle expected the government would lift restrictions on onshore wind and take steps to facilitate more BESS and solar in its energy security policy package, expected in early April.

National Grid ESO's Leading the Way Future Energy Scenario predicted up to 13.1 GW of battery storage capacity by 2030, up from just short of 1.5 GW currently.

Limejump has 1.6 GW under management, of which 1.2 GW are renewable assets and 415 MW flexible assets -- including 220 MW of battery storage capacity, a company spokesman told S&P Global Commodity Insights.

Opium Power formed a joint venture with South Somerset District Council (SSDC) in 2018 to boost the council's green credentials and generate income to fund public services.

S&P Global assessed the price of UK day-ahead power at GBP235.15/MWh March 30, up 21% week on week, and up from GBP56.00/MWh a year ago.