TagEnergy has achieved a major milestone with the completion of its first transmission-connected Battery Energy Storage System (BESS), a 100 megawatt (MW) and 200 megawatt-hour (MWh) facility located in Drax, North Yorkshire, England. This groundbreaking project, named Lakeside, represents a significant advancement in the growing field of energy storage. The system employs Tesla’s advanced Megapack 2XL lithium-ion batteries and is entirely owned by TagEnergy. Partnerships with Tesla, Habitat Energy, and RES were crucial for the success of this project.
Project Overview and Significance
Role of Tesla and Other Partners
Tesla played a crucial role in the implementation of this project, serving as the Engineering Procurement and Construction (EPC) contractor. They provided the advanced battery systems that form the backbone of the BESS. Utilizing Tesla’s Megapack 2XL lithium-ion batteries, the system promises to offer enhanced energy storage capabilities and efficient operation. Tesla’s involvement was a critical enabler for the technological advancements required to bring this facility online.
In addition to Tesla, Habitat Energy provided route-to-market services and battery optimization. Their expertise ensured that the energy stored in the batteries could be effectively distributed and utilized. RES, an independent renewable energy company, took on the responsibility of asset management, ensuring that the project ran smoothly from conception to completion. The seamless integration of the BESS into the National Grid’s transmission network was facilitated by a successful commissioning switching program. This program involved onsite engineers and officials from National Grid, who worked in tandem to bring the system online.
Significance and Impact of the Project
Franck Woitiez, CEO of TagEnergy, underlined the immense significance of the Lakeside project, highlighting it as currently the largest transmission-connected BESS in the UK. This project represents not only a technological achievement but also a critical step in the broader energy transition. Woitiez emphasized that the project faced no significant delays or operating issues, attributing its success to the effective collaboration among TagEnergy, Tesla, Habitat Energy, and RES.
The successful development of this large-scale energy storage solution underscores the essential role that battery storage will play in advancing toward net-zero emissions. Connecting more people to renewable energy sources is a key objective, and the Lakeside BESS represents a major stride in that direction. The ability to store and distribute energy efficiently is becoming increasingly important as reliance on intermittent renewable energy sources, such as wind and solar, continues to grow.
Financial and Operational Aspects
Ownership and Financial Closure
TagEnergy secured complete ownership of the Lakeside facility from RES in December 2021, marking the first significant step towards project realization. Construction began in August 2023, signaling the start of physical work on the ground. By October 2023, the project reached financial closure through a landmark non-recourse debt package. This financial arrangement ensured that the funding was secured without requiring direct recourse to TagEnergy’s balance sheet, thereby minimizing financial risk for the company.
The financial engineering behind this project highlights the increasing viability of large-scale BESS projects. It also sets a precedent for future projects, demonstrating that significant investments in energy storage can be achieved through smart financial structuring. This financial achievement is as noteworthy as the technical accomplishment, showcasing the multifaceted nature of successful energy projects.
Contributions and Future Implications
TagEnergy has reached a pivotal milestone by completing its inaugural transmission-connected Battery Energy Storage System (BESS) in Drax, North Yorkshire, England. This state-of-the-art facility, named Lakeside, boasts a 100 megawatt (MW) and 200 megawatt-hour (MWh) capacity, marking a major leap in the rapidly evolving energy storage sector. Utilizing Tesla’s cutting-edge Megapack 2XL lithium-ion batteries, the system is fully owned by TagEnergy. Key collaborations with Tesla, Habitat Energy, and RES were essential to the project’s success. The Lakeside BESS will significantly enhance the reliability and stability of the local electric grid by managing energy load and facilitating the integration of renewable energy sources. As the demand for sustainable energy solutions grows, this project underscores the importance of innovative storage systems. TagEnergy’s achievement not only showcases technological advancement but also sets a new precedent for future energy storage projects globally, contributing to a more resilient and sustainable energy infrastructure.