NESO procures 1.22 GW of battery storage capacity in UK T-4 capacity market auction for 2029/30 delivery
Grid operator NESO procured 1.22 GW of de-rated BESS capacity in the latest long T-4 capacity market auction for Great Britain's electricity grid, with under construction projects securing the vast majority of contracts awarded to battery storage. The auction, which concluded on March 10, 2026, secured capacity for delivery year 2029/30 at a clearing price of GBP 27.10/kW/year, providing project developers with bankable offtake agreements to support project financing for new build storage, which accounted for 1.18 GW of awarded capacity.
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- 1.22 GW total battery storage capacity procured.
- 1.18 GW of awarded capacity is for new build projects.
- Clearing price set at GBP 27.10/kW/year.
- NESO Group, primarily an India-focused diversified holding company, procured the capacity.
Source Intelligence
The provisional results record 1.22 GW of awarded capacity across 109 capacity market units (CMU) with battery storage listed as the primary fuel. There were 49 battery storage CMUs that exited the auction without a contract, roughly one third of the total entering under the battery fuel type. NESO’s results list just 40 MW awarded capacity for existing BESS while new build storage accounted for 1.18 GW of awarded capacity, across a diverse range of storage durations. This included 431 MW of awarded capacity for two-hour storage, 224 MW for four-hour, 273 MW for five-hour, 16 MW for five-hour and 70 MW for eight-hour energy storage. The results of the T-4 capacity auction are provisional for a period of eight working days after the completion of the auction. During this time, the UK government may annul the auction subject to regulation.
"Grid operator NESO procured 1.22 GW of de-rated BESS capacity"
"providing project developers with bankable offtake agreements to support project financing for new build storage"
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