Project Overview Sets Multiple World Records
UK energy storage developer Fidra Energy has announced the financial close of its Thorpe Marsh battery energy storage system project in Yorkshire, England, securing £1 billion in total investment to build the world’s largest battery energy storage system by capacity. Sungrow, as the core technology supplier, will provide advanced PowerTitan 2.0 liquid-cooled energy storage systems for the project.
This landmark project features a capacity of 1.4GW/3.1GWh and is expected to commence operations in July 2027, capable of powering 750,000 UK homes. The project is located at Thorpe Marsh in Doncaster, South Yorkshire, spanning 55 acres on the site of a former coal-fired power station, adjacent to an existing National Grid substation.
Sungrow Technology Leads Industry Innovation
The project’s core technological highlight lies in adopting Sungrow’s latest PowerTitan 2.0 liquid-cooled energy storage system. Under an agreement signed in November 2024, Sungrow will supply liquid-cooled PowerTitan 2.0 energy storage systems for both the Thorpe Marsh project and the 500MW/1GWh West Burton C energy storage project, along with long-term maintenance services.
Sungrow’s PowerTitan 2.0 system integrates a 2.5MW power conversion system and 5MWh battery into a single container, utilizing integrated string inverter technology that enables the project to achieve large-scale energy storage within a relatively small footprint. The system is specifically designed for grid-forming applications, significantly enhancing the resilience and stability of the UK power grid. James Wu, Senior Vice President of Sungrow, stated: “This partnership with Fidra Energy represents a shared commitment to energy innovation and investment in the UK’s sustainable future.”
Notably, the Thorpe Marsh project marks the first deployment of Sungrow’s PowerTitan 2.0 liquid-cooled energy storage system in Europe, representing a significant breakthrough for Chinese energy storage technology in the European market. While initially configured as a 2-hour energy storage system, Sungrow indicates future expansion to a 4-hour system is possible, providing flexibility for the project’s long-term development.
Unprecedented Funding Scale and Investor Consortium
The project has secured funding comprising up to £445 million in new equity investment from institutional investor EIG and the UK’s National Wealth Fund, plus £594 million in loan facilities from a consortium of international banks. This funding scale sets a new record for European battery energy storage project financing and represents the largest financing for a standalone battery energy storage project globally.
Ian Brown, interim CEO of the National Wealth Fund, stated: “We are set to play a meaningful part in helping the UK achieve its clean energy ambitions, through our support for Thorpe Marsh and other key projects.” The international banking consortium participating in the loan financing includes Deutsche Bank, NatWest, Santander, ABN Amro, and China Minsheng Banking Corporation, among other renowned financial institutions.
Innovative Business Model Ensures Project Returns
Fidra Energy has signed long-term offtake agreements with EDF, Octopus Energy, and Statkraft for approximately 80% of the Thorpe Marsh project’s capacity. This long-term offtake agreement model provides stable revenue streams for the project while reducing investment risks.
Additionally, the project secured a fifteen-year capacity market award from the UK Government this spring, commencing in October 2028. This mechanism will provide additional revenue guarantees for the project, ensuring long-term profitability. The project is expected to export over 2 million MWh of electricity annually, equivalent to the demand of approximately 785,000 households.
Significant Impact on UK Energy Transition
The combined Thorpe Marsh and West Burton projects can provide up to 11% of the additional storage capacity needed under the UK Government’s Clean Power 2030 mission. According to the UK’s 2030 Clean Power plan, UK battery energy storage system capacity will increase fivefold to reach 22-27GW, with the Thorpe Marsh project’s commissioning making an important contribution to achieving this goal.
UK Energy Secretary Ed Miliband commented: “It’s fantastic to see the National Wealth Fund breathing new life into a former coal site – turning it into a cutting-edge battery hub that will power thousands of British homes and businesses with clean energy from wind and solar. Every battery we build boosts Britain’s energy security, reduces our exposure to fossil fuel price shocks and drives us towards clean power by 2030.”
Industry Development Trends and Technical Advantages
In recent years, UK battery energy storage project capacity has grown dramatically, increasing from 57.1GW to 95.6GW over the past year, representing growth of approximately two-thirds. This growth trend reflects the UK government’s emphasis on energy storage technology and the market’s urgent demand for clean energy solutions.
Since Q3 2023, UK battery energy storage systems’ revenue has become increasingly linked to wholesale market prices, with the option to capture arbitrage revenue rather than solely providing ancillary services. This revenue diversification strategy provides greater profit margins for storage projects.
As a global leading energy storage technology supplier, Sungrow’s PowerTitan 2.0 system offers significant advantages in technological innovation. The system employs liquid cooling technology to ensure batteries operate under optimal temperature conditions, improving system safety and lifespan. The integrated string inverter design not only enhances system efficiency but also simplifies installation and maintenance processes.
Fidra Energy’s Ambitious Vision
Fidra Energy was established by institutional investor EIG in September 2024, targeting a 10GW operational portfolio across the UK and Europe by 2030. The company currently has a 3.15GW development pipeline in the UK, including the 1.2GW Bicker Fen 1&2 project in the East Midlands and the 500MW West Burton C development in Nottinghamshire, in addition to the Thorpe Marsh project.
Chris Elder, Chief Executive Officer of Fidra Energy, stated: “Thorpe Marsh is one of the most exciting infrastructure projects in the world and a testament to the outstanding team at Fidra and others who have supported us on this journey. Battery energy storage has a crucial role to play in delivering clean, reliable power, storing renewable energy when it is abundant, and releasing it when generation from sources such as wind and solar is low.”
Walid Mouawad, EIG’s Managing Director and Global Head of Energy Transition, said: “EIG is pleased to support the development of the Thorpe Marsh BESS project, which we view as a pivotal UK infrastructure asset capable of accelerating the energy transition by integrating renewables into the power system and strengthening the grid.”
Environmental Benefits and Social Value
The construction of the Thorpe Marsh project holds significant environmental and social importance. By locating the project on a former coal-fired power station site, it represents a symbolic transition from traditional fossil energy to clean energy. Through storing excess renewable energy and releasing it when needed, the project will significantly reduce dependence on fossil fuel generation, making important contributions to the UK’s carbon neutrality goals.
The project is expected to create substantial employment opportunities during construction and operation phases, driving local economic development. As a major infrastructure project, the Thorpe Marsh energy storage system’s construction will stimulate development across related industrial chains, including equipment manufacturing, engineering construction, and operation and maintenance services.
Future Development Prospects
With the successful advancement of the Thorpe Marsh project, Sungrow’s influence in the European energy storage market will further expand. The successful implementation of this project will provide important reference cases for Sungrow’s development in the global energy storage market and promote the international application of Chinese energy storage technology.
The rapid development of the UK energy storage market provides favorable opportunities for more similar projects. As renewable energy installed capacity continues to grow and electricity market reforms deepen, large-scale energy storage projects will play increasingly important roles in the UK energy system. Sungrow, with its advanced technology and rich project experience, will play a significant role in this process.
The successful financing of the Thorpe Marsh battery energy storage project and the application of Sungrow technology mark important progress in clean energy technology cooperation between China and the UK, making significant contributions to promoting global energy storage industry development and achieving carbon neutrality goals.
