UK’s largest battery storage project secures £1bn in funding

SCOTTISH battery storage firm Fidra Energy has secured over £1bn (US$1.4bn) in funding from the National Wealth Fund (NWF) and EIG Partners for its battery energy storage system (BESS), set to be the largest of its kind in the UK.

The project is located at Thorpe Marsh in Doncaster, South Yorkshire, and is expected to have a capacity of 1.45 GW (2.9 GWh). Fidra says the project will have the potential to export more than 2m MWh/y of electricity, enough to power about 785,000 homes.

The project, which secured planning approval in January, is being developed on 55 acres of land formerly part of a coal power station, adjacent to an existing National Grid substation.

Around 80% of the power generated from Thorpe Marsh has been secured through energy offtake agreements with EDF, Octopus Energy and Statkraft.

Growth of BESS

As renewable energy projects accelerate across the UK, battery energy storage systems (BESS) have become vital for maintaining energy security and ensuring stable access to power.

The government’s Clean Power 2030 Action Plan states that the UK will need between 23 GW and 27 GW of battery storage capacity by 2030, representing a significant increase from around 4.5 GW in 2024. High upfront capital costs and limited access to critical minerals remain key hurdles to getting BESS projects off the ground.

To support emerging projects, the government has launched several funding initiatives – including the Department for Business and Trade’s £452m Battery Innovation Programme. Having backed more than 100 startups, the programme targets battery and critical mineral research while attracting investment into the UK supply chain.

Along with Thorpe Marsh, the NWF has committed up to £200m to finance Fidra’s future BESS pipeline, which includes its 500 MW West Burton project in Nottinghamshire.

Chris Elder, CEO of Fidra, said: “Reaching financial close for Thorpe Marsh is a huge achievement for Fidra Energy. Thorpe Marsh is one of the most exciting infrastructure projects in the world and a landmark transaction in the energy sector. The investment by EIG and the NWF is testament to the outstanding team at Fidra and everyone who has supported us on the project.”

Thorpe Marsh is expected to go into commercial operations in Q4 2027.