Sunsure Energy, NVVN Ink 500 MWh BESS Pact for Peak Hour Power Supply to UPPCL

Sunsure Energy has signed a 500 MWh battery energy storage system (BESS) pact with NTPC Vidyut Vyapar Nigam for peak hour power supply to Uttar Pradesh Power Corporation. The agreement, backed by a 15-year contract, will see Sunsure set up a standalone BESS at Garautha substation in Jhansi, Uttar Pradesh. The project marks Sunsure's first long-term power supply agreement through BESS.

Title: Harmony Energy Expands Globally After HEIT Sale

Harmony Energy, a leading developer of battery energy storage systems (BESS), has made significant strides following the sale of its affiliated Harmony Energy Income Trust (HEIT). The company, which was one of the early movers in the UK BESS market, has been expanding its operations abroad, focusing on markets such as France, Poland, Germany, and Italy. CEO Peter Kavanagh shared insights into the company's strategy and future plans during an interview with Energy-Storage.news [1].

HEIT Sale and Market Credibility

The sale of HEIT, a listed vehicle that held Harmony Energy's BESS projects, marked a turning point for the company. The transaction, which saw HEIT sold to investor Foresight Group for a 94% premium to its share price, provided valuable credibility in the market. Kavanagh stated that the sale proved private investors were willing to pay a higher price for assets, indicating a shift in market dynamics. This transaction also allowed Harmony Energy to continue providing asset management services for the portfolio, ensuring a smooth transition [1].

Expanding Abroad

Harmony Energy has been actively expanding its operations internationally. In France, the company energized a 100MW/200MWh project at the port of Nantes Saint-Nazaire Harbour, with plans to bring two additional projects online shortly. Kavanagh emphasized the importance of capturing early revenue streams in markets with high ancillary service prices. In Poland, Harmony sold a 200MW BESS to EDF but is also taking projects into construction to own and operate. The company is focusing on building, owning, and operating projects rather than relying heavily on capacity markets [1].

Market Strategy and Fundraising

Kavanagh discussed Harmony Energy's strategy of building and operating BESS projects, which will be owned by institutional investment firms. The company plans to raise funds in September, targeting a £300 million (US$403.5 million) fundraise run by JLL. This funding will be used to develop a significant pipeline of projects, with 14GW at different stages of development and 1GW ready-to-build in the UK. The company aims to build 3GW across Europe in the next five years [1].

Diversification and Future Plans

Harmony Energy has been diversifying its partnerships, moving away from its primary reliance on Tesla. The company has started working with Envision Energy on its final two UK projects. Kavanagh emphasized the importance of having multiple suppliers to ensure competitive pricing and reliability. The company plans to continue its merchant strategy, balancing merchant risk with floors and tolling to maximize value [1].

Conclusion

Harmony Energy's expansion into international markets and its focus on building, owning, and operating BESS projects position it well for future growth. The company's strategic shift, following the HEIT sale, has provided a strong foundation for its private capital-based expansion. With a robust pipeline and a diversified supplier base, Harmony Energy is poised to capitalize on the growing demand for BESS in Europe.

References
[1] https://www.energy-storage.news/harmony-energy-ceo-on-lessons-learned-from-heit-strategy-going-forward-and-european-expansion/