Habitat Energy has secured a significant new contract to manage a 40MW battery storage asset. The deal involves providing optimization services for Arlington Energy. This move strengthens the position of both companies in the UK’s flexible energy market.
Optimizing the Asset
The battery will be active across several markets. Habitat Energy plans to trade in the day ahead and intraday markets. They will also participate in the Balancing Mechanism and take advantage of ancillary service contracts when it makes financial sense.
To do this, Habitat will use its algorithmic trading platform called PowerIQ. A team of asset optimizers based in Oxford oversees this technology. The battery is being registered as a Balancing Mechanism (BM) unit, which gives it a full route to market.
Managing Battery Health
Profit is not the only focus. A core part of the service involves managing the physical degradation of the battery cells. Habitat aims to extend the life of the asset beyond its standard warranty. This strategy helps improve long-term returns for the asset owner.
This appointment follows another major win for Habitat Energy. They are currently working on a 50MW project with Pivot Power in Oxford. Once complete next year, these combined projects will give Habitat one of the largest battery optimization portfolios in the UK.
Industry Reaction
Andrew Luers, co-founder of Habitat Energy, expressed excitement about the partnership. He noted that Arlington Energy is making big strides with their Greenfield Road battery. He believes these assets are essential for delivering a clean and flexible energy system for Great Britain.
Luers explained that their algorithmic approach ensures the grid gets the flexibility it desperately needs. It also maximizes returns for investors, which encourages further funding for the energy grid of the future.
Matt Clare, a director at Arlington, praised Habitat’s reputation in the power sector. He highlighted the importance of battery storage in light of recent events. He pointed out that recent power outages affected over a million homes. This shows a real need for solutions that can kick in immediately to help stabilize the grid.
