Harmony Energy Income Trust (HEIT) have successfully cleared six BESS assets in the latest T-1 Capacity Market auction
HEIT has secured six BESS projects in the latest T-1 Capacity Market auction, boosting its revenue to £3.2 million for delivery years 2024/25.aasa The battery storage investment firm announced this news today, highlighting the auction clearing at £35.79/kW/year and factoring in the 22% de-rations. This translates to a contracted revenue of £3.2 million for the period, approximately £8,000/MW. This successful bid adds £1.7 million to the company’s projected cash flows.
Capacity Awards
The National Grid ESO just dropped the results of the latest T-1 CM auction on 20 February. After eight intense rounds, the auction finally cleared. The initial results show that BESS snagged the top spot with a whopping 655.16MW capacity among all clean technologies.
At the Solar Media’s Energy Storage Summit EU 2024 yesterday (21 February), Georgina Morris, the head of capacity market policy for low carbon technologies at the Department of Energy Security and Net Zero (DESNZ), spilled the tea. She mentioned how the CM is gaining more importance for BESS in terms of revenue. The increase in HEIT’s contracted revenue for 2024/25 is proof of that, as revealed during her conversations with market participants. Looks like BESS is securing its bag in the energy storage game!
Said Ms Morris;
The Capacity Market is not the main chunk of the [BESS] revenues stack, but I am starting to think that, especially in a high-interest environment, guaranteed contractual payment is important for batteries.
Further Reading
https://www.solarpowerportal.co.uk/harmony-energy-bess-t-1-capacity-market-auction/
https://www.energy-storage.news/bess-wins-highest-percentage-uk-capacity-market-auction/