Work has started on constructing a £16m new-build battery storage facility at Motcombe.

Global clean energy producer TagEnergy is building the new plant at Hawkers Hill Energy Park with Tesla Energy.

Santander UK has provided TagEnergy with a £6.4m funding package to support development.

The 20 MW/40 MWh, two-hour front of meter battery storage facility is anticipated to be complete, connected to the grid and operational by June 2022.

It will use a system of Tesla Megapack lithium-ion batteries, together with Tesla’s Autobidder AI software.

Battery storage is key to ensuring homes and businesses can be powered by renewable energy. It plays an important role in boosting the nation’s capability to capture, store and release renewable energy, providing a more reliable and regular supply.

Flexible technology systems like Hawkers Hill Energy Park will form part of the UK’s smarter electricity grid, supporting the integration of more low-carbon power, heat and transport technologies.

The park is the seventh battery storage facility Santander has supported with funding over the past two years. The bank has provided more than £100m of funding to battery storage.

The funding is part of Santander’s global target to lend €120bn in green finance to businesses throughout the world by 2025.

The funding package provided to TagEnergy was partly financed by Santander UK’s Environmental and Social Growth Fund, which is designed to support lending that benefits the environment or society.

TagEnergy is part of Impala SAS group, owned by French businessman Jacques Veyrat, and is operated by a team of manager-shareholders.

Its operations span the renewables chain, from development, financing, construction and asset management of wind, solar and storage projects, to commercialisation of its competitive energy.

TagEnergy has developed a portfolio of close to 2GW in Portugal, Spain, UK and Australia, based on solar, wind and battery storage technologies.

Franck Woitiez, CEO of TagEnergy, said: “This is a pivotal moment as we enter the fast-growing UK renewable energy market and Santander UK’s support of our very first project here has been crucial.

“Our significant battery storage expertise means we can leverage our flexible energy supply to optimise the energy market while helping to stabilise the grid and increasing renewables’ share of it.”

Mark Cumbo, director of Specialised and Project Finance at Santander UK, said: “This is an important step forward for the UK’s ability to produce a reliable flow of electricity from renewable sources.

“Santander UK strongly supports clients bringing positive environmental change to the UK’s energy sector.

“We are delighted to provide funding for this new battery storage facility in Dorset.”

By Miranda Robertson