Israel-based independent power producer Econergy has connected its 40 MW/120 MWh Dalmarnock battery energy storage system in Glasgow, Scotland, to the UK grid. The company expects full commercial operation by December.
The three-hour project is financed by approximately £21 million in project debt from Santander UK. Econergy has also signed a 10-year floor agreement with EDF that guarantees a minimum annual revenue, with a revenue-sharing mechanism above the floor. Econergy said EDF will optimize the asset. Neither the floor level nor the revenue split was disclosed.
“We have chosen EDF to optimise the asset and our agreement with them provides a 10-year revenue floor while preserving exposure to upside through revenue sharing,” said Joshua Murphy, director of energy storage at Econergy.
Dalmarnock is Econergy’s second connected UK battery, after the 50 MW/100 MWh Swangate project in Yorkshire, which connected in 2024. Four more UK projects are under construction. They include the 80 MW/240 MWh Immingham battery, which uses the same Santander and EDF structure and is expected to connect in 2027, and a three-project portfolio totaling 160 MW/500 MWh, expected to connect in 2027 and 2028. Econergy says its UK portfolio is about 2.2 GW and storage-led.
Floor deals like Dalmarnock’s give UK battery owners a hedge against falling merchant revenues, which dropped to about £41,000/MW a year in February, according to Modo Energy data. EDF has also signed floor agreements covering 737 MW of Gresham House’s UK battery capacity, and in September it signed two long-term optimization agreements with Trinasolar for UK batteries.
Dalmarnock adds to a small operational base in Scotland. The country had 843 MW of operational battery capacity across 22 projects at the end of the first quarter, against a storage pipeline of 41.8 GW, according to Scottish government data.
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