Harmony Energy Income Trust notes value of two-hour duration in first NAV figures since IPO

Construction kicks off at 99MW/198MWh UK battery storage site

Published: 22 Feb 2022, 11:31

Harmony Energy Income Trust’s portfolio is hoping to mirror the success of parent company Harmony Energy’s two-hour duration batteries. Image: Harmony Energy.

Harmony Energy Income Trust (HEIT) has emphasised the benefits of two-hour duration batteries, as it reports its net asset value (NAV).

The company’s NAV increased by 1.74% to £210.11 million in the three months following its IPO in November. This was largely due to its Pillswood (98 MW) and Broadditch (11 MW) projects being revalued to reflect lower risk due to EPC, O&M and revenue optimisation agreements with Tesla.

These two projects – which form part of HEIT’s initial seed portfolio of five projects with a capacity of 213.5MW – are now under construction and are expected to be complete from December 2022.

The other three sites Farnham (20MW), Rusholme (35MW) and Little Raith (49.5MW) are all now shovel ready, and also benefit from a Tesla framework agreement.

All of HEIT’s battery assets have a duration of two hours, a key tenet of the company’s strategy as it says this allows it to take advantage of increases in wholesale market revenue opportunities. This is particularly significant currently, given the record high wholesale power prices in the UK driven by a global gas shortage.

There are currently just two two-hour duration battery storage projects in the UK, according to HEIT, both of which were developed by Harmony Energy Limited – the parent company of the battery-focused investor. Both also use Tesla’s Megapack technology and Autobidder revenue optimisation platform, mirroring HEIT’s developments.

Max Slade, commercial director of Harmony Energy Advisors Limited, commented: “We are pleased with the increase in NAV over the period and we continue to make good progress with the build-out of the portfolio.”

Harmony Energy has been increasing its portfolio of battery energy storage in the UK, including securing a lease for its 100MW Creyke Beck project earlier this month. In November, it announced a joint venture with global clean energy group TagEnergy for two grid-scale battery energy storage projects in England and Scotland with a total capacity of 100MWh.

In 2020, it signed a deal with Fotowatio Renewable Ventures to build a 99MW / 198MWh project in southern England. 

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