Second-life lithium batteries from Renault cars will be installed by Northumbrian Water through 2019 in a bid to trial energy storage systems by the company.
The trial is expected to take place at the company’s sites across the north-east of England and the counties of Essex and Suffolk.
The storage units will be used to manage energy loads and help reduce energy spend, particularly through the night, in addition to providing power through peak evening times.
The batteries will be commissioned by Autumn 2019 and will be a joint contract between Northumbrian Water and partners, including Argonaut Power, with the latter supplying the behind-the-meter storage systems and managing the operation.
Investor Ingenious is backing Argonaut Power, with strategic advisor Ikigai Capital proving a bankable structure for the pilot.
The battery systems will be provided by energy storage engineering company, Connected Energy.
Argonaut Managing Director and Ingenious Senior Investment Director Roberto Castiglioni said: “We are excited to enter into an exclusive partnership with Northumbrian Water to install and manage behind-the-meter storage at some of their critical sites.
“We believe we have created something unique and innovative through a combination of technical and financial engineering. As far as we know, we’re the only fully-funded solution offering 30-year storage installations to commercial and industrial customers under a revenue sharing agreement, boosting site profitability.”
Northumbrian Water Energy Development Manager Anthony Browne said: “Large-scale battery storage is going to be a major feature of the electricity industry going forward and this is a great opportunity for us to develop our understanding of these processes.
“We expect that having batteries on site can also help us obtain more value from any renewable energy we generate on our sites.”