Kona Energy secures £40m contract for East Lothian battery energy storage system project

Battery storage developer Kona Energy has secured a circa £40 million capacity market contract for its landmark Smeaton project - a 228MW/456MWh battery energy storage system (BESS) in East Lothian.
The milestone follows the successful granting of planning consent for the site, reinforcing Smeaton’s position as one of the most advanced grid-scale energy storage projects in the UK.
The project benefits from two ‘Protections’ under the ongoing Grid Connection Reform and Clean Power 2030 plan, with a commitment from NESO to bring projects online ahead of their capacity market delivery year. This further enhances its grid connection certainty and long-term viability.
Strategically located in Scotland, the Smeaton BESS will play a crucial role in reducing grid constraints and strengthening energy resilience.
With the upcoming closure of the Torness nuclear power station before 2030 and significant transmission constraints between Scotland and England, Smeaton is ideally positioned to store excess renewable energy and release it when and where it is most needed. This will be instrumental in lowering constraint costs and maintaining public confidence in the net zero transition.
The project secured its capacity market agreement in the T-4 auction - a government-backed mechanism ensuring electricity supply during peak demand. As one of the few independently developed projects to achieve this milestone, Smeaton is well-positioned for the next phase of delivery, with strategic investment discussions ongoing.
Andy Willis, founder of Kona Energy, said: “This is a defining moment for Kona Energy and the Smeaton project. Securing a £40m Capacity Market contract is a testament to the project’s quality and national importance. The Kona team is wholly supportive of both Grid Connection Reform and Clean Power 2030, this contract not only provides an attractive index lined revenue contract but as importantly a de-risked grid connection which is crucial to investor confidence.
“Smeaton will help tackle the UK’s growing grid challenges by transforming wasted renewable energy into a valuable resource. As we advance towards delivery, we are actively engaging with select strategic partners who can bring the right expertise and capital to maximise the project’s potential - we are open for further discussions with third parties who can bring extensive value in order to deliver this project on the ambitious scale we are aiming for.”
Detailed design work is already underway in partnership with Scottish Power Transmission and key supply chain partners.