CBRE Advises on Battery Storage Site Acquisition

CBRE has advised FPC Electric Land Ltd, the UK’s largest specialist investor in grid-connected land, on a freehold Battery Energy Storage System (BESS) investment at Uskmouth Power Station.

The investment will see the delivery of a 230MW BESS facility on the nine-acre, former coal stocking site of the decommissioned Uskmouth Power Station. Furthermore, the vendor and tenant have secured an additional capacity of 120MW which will trigger a pro-rata rental increase upon the date additional capacity is made available at the site. This is the first section of the former Uskmouth Power Station to be successfully developed for BESS usage, with further projects and capacity in various stages of the development process.

The development, situated on brownfield land, will support the UK’s transition to a decarbonised power system by providing essential balancing services, further enabling future addition of intermittent generation in the form of solar and wind. The system has been designed to minimise its impact on biodiversity and the local community, with no demolition required.

Upon completion, the development has a GDV of circa £150m and offers a long-term income stream via an existing 30-year lease to Uskmouth Energy Storage Ltd, a special-purpose vehicle of value-add investment manager, Quinbrook Infrastructure Partners.

Jack Culmer, Electric Land’s Head of Acquisitions, commented “This acquisition reflects our ambitions for what promises to be another year of dramatic growth for Electric Land. The Uskmouth site will house, what will be, one of the largest battery storage facilities in the UK and will sit well within our 30-asset investment portfolio of freehold, grid connected land.”

Alfie Stephenson, Associate Director, Operational Real Estate at CBRE

This is an exciting acquisition, providing our client an opportunity to add to its impressive portfolio of low carbon electricity system investments at a time of heightened interest from investors for ESG-driven opportunities.

Alfie Stephenson, Associate Director, Operational Real Estate at CBRE