Shell Energy has signed a long-lasting tolling agreement with two UK energy companies. This relates to a Battery Energy Storage System or BESS being developed in Hampshire.

The Bramley BESS is currently under development and expected to launch later this year. In the context of this agreement, Shell Energy is effectively renting out a BESS facility to two energy companies, namely Penso Power and BW ESS.

Penso Power and BW ESS may then store electricity and discharge it to the electricity grid. The fixed-price deal covering the 100MW/300MWh BESS facility in Bramley, Hampshire is for a seven-year period.

Among the benefits of this agreement, the first of its kind for a single battery energy storage system based in Great Britain, includes guaranteed revenue for Penso Power and BW ESS alike. This move is also advantageous for Shell Energy with the company trading the BESS location to wholesale market and various ancillary services.

Octopus Energy signed a two-year toll agreement for a total of fourteen BESS projects in June. The Shell deal distinguishes itself as a long-term deal for a single facility.

This latest tolling agreement comes at a time when there are high expectations for the future of UK renewable energy tech. BESS may act as a key component in developing the infrastructure needed for the energy transformation the government is eyeing to come to fruition.