Deals Counterparts

NESO procures 1.22 GW of battery storage capacity in UK T-4 capacity market auction for 2029/30 delivery

Development Storage tender United Kingdom Mar 10, 2026
1.22 GW
Capacity
development
Stage

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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Deal Analysis

The UK's latest T-4 capacity market auction secured 1.22 GW of battery storage for 2029/30, with a notable 1.18 GW dedicated to new build projects. This GBP 27.10/kW/year clearing price offers critical long-term revenue certainty, significantly enhancing project bankability for developers. Grid operator NESO, a Kolkata-based group primarily focused on infrastructure and power in India, procured this substantial capacity. The auction's outcome effectively de-risks a significant pipeline of future UK grid flexibility, ensuring new storage comes online.
  • 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

KEY DETAILS

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.

Capacity
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
Location
UK capacity market auction for 2029 delivery
PPA Details
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... at a clearing price of GBP 27.10 ($36.36)/kW/year... Contract lengths on offer include one, three, nine and 15-year capacity agreements.
Announcement
The auction concluded on Mar. 10, 2026.
COD
NESO’s provisional results for the T-4 auction for delivery year 2029/30
PARTIES MENTIONED IN SOURCE
N
NESO buyer

"Grid operator NESO procured 1.22 GW of de-rated BESS capacity"

p
project developers seller

"providing project developers with bankable offtake agreements to support project financing for new build storage"

high quality Enriched Mar 11, 2026

Timeline

Announced
Mar 10, 2026
Signed
Closed

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