BP & Harmony Energy sign storage optimisation deal

BP has signed an agreement with battery storage investment company Harmony Energy Income Trust (HEIT) to provide physical power trading and optimisation services to two UK battery energy storage (BESS) projects totaling 80MW / 160MWh, which are expected to come online in the first half of 2024.

The agreement will see BP work on two HEIT BESS projects: Hawthorn Pit (49.9MW / 99.8MWh) and Wormald Green (33MW / 66MWh). 

The projects will be the first new BESS assets BP has contracted to optimise since its acquisition and integration of the digital energy platform Open Energi in 2021. The software developed by Open Energi will enable “real-time insight and decision-making to connect HEIT’s assets with power markets through bp’s trading business”, a BP statement said.

Hormoz Ala, senior manager in European power at BP, said: “This deal represents a significant opportunity to combine BP’s established experience in power trading with Harmony’s track record in battery development to help safeguard the stability of the GB power grid as we all work to transition to a Net Zero future. 

“This project is also an example of how real-time decision-making, provided by BP’s power trading team and the Open Energi platform, allows new ways for us to provide grid support optimisation in the future. As BP looks to transform into an integrated energy company, it is vital that we continue to develop and diversify our own business to continue to perform for customers, investors and the energy market.”

Paul Mason, managing director of HEIT’s Investment Adviser, added: “As we move into a period of increased market complexity, with a wider range of revenue streams available to BESS projects, selecting the right revenue optimisation partners is increasingly important. This agreement embodies a shared focus on innovation and sustainability, which is underpinned by the sophistication and experience offered by bp’s Open Energi platform and our rapidly growing portfolio of two-hour duration batteries.”