Funding has been secured to accelerate the transformation of a former power station in Newport into one of the UK’s largest Battery Energy Storage Systems (BESS).
The Strategic Premises Fund of Cardiff Capital Region (CCR), the regional body made up of the ten local authorities in South East Wales, has loaned £8.5 million to Simec Atlantis Energy Limited (SAE) to help transform a former power station in Newport, South East Wales into one of the UK’s largest Battery Energy Storage Systems (BESS).
The loan will accelerate the delivery of the Uskmouth facility by funding early pre-construction and construction associated with the Afon Wysg 1 (AW1) project and, alongside an estimated additional sum of £56.5 million of private sector finance, will fund upfront works, battery equipment, construction, and grid connection.
Over the lifetime of the whole project, the investments are set to create more than 500 jobs, including 37 apprentices in both construction and long-term employment using a Welsh-based contractor, as well as Welsh sub-contractors and supply chain partners, enabling a nationally significant infrastructure project which aligns with CCR’s Regional and Economic Industrial Plan to grow the green economy.
Upon completion, the Uskmouth site will be capable of supporting circa 3.5GWh of Battery Storage projects, which will allow energy to be stored when it is cheapest, and discharged when demand is high, helping reduce energy costs and a reliance on imported electricity. The plant will also stabilise the local grid, supporting National Grid in managing demand and supply efficiently.
All investments from CCR’s Strategic Premises Fund, which is managed by CBRE Lending, are taken through a rigorous two-stage approval process. It is a repayable investment with interest, structured to protect public money while enabling a transformative infrastructure project. The loan, upon repayment, will be reinvested back into the region. Previous commercial endeavours supported by CCR’s Fund include Pulse Plastics in Ebbw Vale, Great Point Seren Studios in Cardiff, Tŷ Hotels in Newport and John Street in Cardiff.
Cllr Andrew Morgan OBE, CCR’s Portfolio Lead for Strategic Premises Fund, said:
“CCR's Strategic Premises Fund is contributing vital funds on a commercial loan basis alongside private sector investment to help make this site viable for energy storage. Repurposing the former power station at Uskmouth delivers multiple benefits for local communities, businesses, the environment and wider society. This project demonstrates what can happen when the public and private sectors combine to support our energy needs for the future.”
Cllr Dimitri Batrouni, Leader of Newport Council, said:
“This project represents a tremendous economic and sustainable energy opportunity for Newport. I’m excited about what this can deliver for people in Newport and across the region, with employment opportunities, skills development for young people through apprenticeships, and delivering cutting-edge infrastructure projects that align with our regional ambition to grow the green economy.”
Michael Coutts, Associate Director, CBRE Lending, added:
“This loan demonstrates the breadth and capability of the Fund to support a wide range of sectors across the region, reflecting CCR’s priorities spanning employment, regeneration and environmental objectives. We look forward to building on this success, supporting further projects across South East Wales.”
