Ørsted Invests in Tesla Battery Energy Storage System for UK Offshore Wind Farm

(Image credit: Ørsted)

Ørsted has made the final investment decision on a battery energy storage system, which will stabilize the UK energy supply and reduce price volatility.

The Tesla battery energy storage system will be installed on the same site as the onshore converter station for Ørsted’s Hornsea 3 Offshore Wind Farm in Swardeston, near Norwich, Norfolk, in the eastern part of England. The battery’s location on the same land as the onshore converter station minimizes disruption to those living and working nearby.

The storage system has a capacity of 600 MWh (and a 300 MW power rating), equivalent to the daily energy use of 80,000 UK homes. When it is windy and sunny, so that electricity generation exceeds demand, the battery will store the excess so it can be discharged later to help balance the grid. This will reduce price volatility for consumers as it will make more power available, including during peak periods, when energy is traditionally more expensive. It will also result in UK energy systems being easier to manage by helping smooth out the variations between supply and demand.

With the battery energy storage system, Ørsted is investing in a grid-balancing technology which is a natural add-on to its offshore wind power generation business and will provide complementary services and revenue profile while supporting the continued build-out of the UK’s renewable energy infrastructure. Its favorable position within the UK electricity system, and co-location for efficient construction and operations, supports the investment case. The UK is one of the world’s largest markets for offshore wind and the market where Ørsted has the most offshore wind farms (12) in operation.

When complete, the battery energy storage system will be one of the largest in Europe. It is expected to be operational by the end of 2026.

Duncan Clark, Head of UK & Ireland in Ørsted, said: “Our 12 operational UK offshore wind farms are providing a huge amount of clean energy to the grid. The battery will help ensure that renewable energy is used in the best possible way by storing it when demand is lower and then releasing it back into the system when it’s really needed, thereby maximizing the potential of renewable energy while providing increased energy security and value to consumers. With this investment, we’re adding significantly to Ørsted’s growing portfolio of storage solutions co-located with onshore and offshore renewable assets.”

Mike Snyder, Senior Director of Megapack at Tesla, added: “Tesla is excited to be part of this industry-leading project with an exceptional partner. This project demonstrates the value and flexibility of Tesla’s best-in-class power electronics, providing enhanced grid stability and enabling more renewables on the grid.”

Ørsted currently has a total of 660 MW (1,850 MWh) storage projects in operation or under construction in the UK and US including the project announced today. In addition, Ørsted is developing a storage opportunity pipeline of +2 GW across the UK, Ireland, and the US.

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