Shell has entered into a seven-year fixed-price tolling agreement for a 100MW battery energy storage system (BESS) under construction in Hampshire, England. The agreement involves the Bramley battery energy storage system, which is being developed by BW ESS and Penso Power. This contract represents the first long-term tolling agreement for a single BESS asset in Great Britain, setting a precedent for new revenue models in the energy storage market across Europe.
The fixed-price tolling agreement ensures revenue certainty for BW ESS and Penso Power, while Shell will manage the Bramley BESS's participation in various ancillary services and wholesale markets. The Bramley BESS, which will be the first in Europe to use Sungrow's PowerTitan 2.0 liquid-cooled technology, aims to deliver a 330MWh capacity within a compact project footprint. The system is expected to be the longest-duration BESS in the UK upon its commissioning in the fourth quarter of this year.
Erik Stromso, CEO of BW ESS, expressed enthusiasm about the partnership. “We are thrilled to partner with the highly experienced energy trading team at Shell on this project,” Stromso said. “Bramley showcases our commitment to advancing energy storage solutions that set the bar for the wider market—while pioneering new models for project financing and operation.” Stromso emphasized that the tolling agreement not only secures long-term revenues for Bramley but also facilitates a shift in the market from short-term frequency response to load shifting.
Rupen Tanna, Head of Power and Systematic Trading at Shell Energy Europe, highlighted the significance of this agreement. “Tolls have been a feature of conventional energy trading for many years. By extending the business model to battery storage, Shell has the trading experience to add significant value while supporting the UK's ongoing energy transition,” Tanna said. He noted that the experience gained from these early tolling contracts will be invaluable to the broader energy storage market.
