# £8.5m loan powers major battery storage project in Wales

- Link: https://www.directorstalkinterviews.com/8-5m-loan-powers-major-battery-storage-project-in-wales/4121192834
- Published: 2025-04-17T09:37:00+01:00
- Author: Amilia Stone

A powerful new chapter is being written for South East Wales as a disused power 
station is reborn into a flagship hub for clean energy storage, unlocking economic
growth and national energy resilience.

A landmark investment is fuelling the transformation of Newport’s Uskmouth Power
Station into one of the UK’s most ambitious Battery Energy Storage System (BESS)
projects. Cardiff Capital Region (CCR) has provided an £8.5 million commercial loan
to Simec Atlantis Energy (SAE) to accelerate the delivery of the Afon Wysg 1 (AW1)
scheme—kickstarting a sustainable redevelopment with national implications.

Delivered through CCR’s Strategic Premises Fund and managed by CBRE Lending, the
funding represents a pivotal step in realising the site’s potential. It supports
critical early-stage development, including pre-construction works and site infrastructure,
alongside a substantial £56.5 million injection of private sector capital. These
combined investments will fund battery equipment, grid connectivity, and construction,
putting the project on the fast track to becoming operational.

At the heart of this initiative lies a flagship 240MWh battery storage facility 
with capacity to scale up to 480MWh. When fully developed, the Uskmouth Sustainable
Energy Park (USEP) will offer a total site capacity of 3.5GWh—making it one of the
largest BESS facilities in the country. This will enable electricity to be stored
when it is most affordable and released when demand surges, helping to lower energy
costs, stabilise the national grid, and reduce reliance on imported electricity.

More than a technological leap, the Uskmouth project represents a catalyst for inclusive
regional growth. Over 500 jobs are forecast across the development’s lifecycle, 
including 37 apprenticeships. Welsh-based contractors and a local supply chain will
be engaged, ensuring the economic value is retained within South East Wales. The
initiative aligns seamlessly with CCR’s Regional and Economic Industrial Plan, which
champions green energy and high-quality job creation across the region.

Crucially, this is a repayable commercial loan with interest, rigorously assessed
through a two-stage approval process. It safeguards public funds while enabling 
long-term impact, with repayments reinvested back into future regional opportunities.
The Strategic Premises Fund has a proven track record in catalysing growth through
previous investments in ventures such as Pulse Plastics in Ebbw Vale, Great Point
Seren Studios and John Street in Cardiff, and Tŷ Hotels in Newport.

Cllr Andrew Morgan OBE, Portfolio Lead for the Fund, highlighted the project’s multifaceted
value: from boosting energy resilience to delivering social, environmental and economic
returns. He underscored the potential unlocked when public and private sectors collaborate
to address modern infrastructure challenges.

Echoing this sentiment, Cllr Dimitri Batrouni, Leader of Newport Council, spoke 
of the wide-reaching benefits for the city and its residents—including cutting-edge
green infrastructure, new career pathways for young people, and momentum for regional
ambitions in the clean energy economy.

Michael Coutts, Associate Director at CBRE Lending, added that this investment is
a testament to the Fund’s versatility and impact across multiple sectors, reflecting
CCR’s broader mission to drive sustainable employment and regeneration.

SAE CEO Graham Reid welcomed the funding as a critical milestone in the company’s
strategy to become a leading developer, owner, and operator of sustainable energy
assets. He confirmed that securing financial close for AW1 remains a top priority
for 2025, as the company pursues a growing pipeline of renewable infrastructure 
projects.

By breathing new life into a former coal-fired site, this project transforms industrial
legacy into future-ready energy innovation, marking a bold shift for both SAE and
the South Wales energy landscape.

_**[SAE Renewables Limited](https://www.directorstalkinterviews.com/company/sae-renewables/sae.l)**(
LON:SAE) was founded in 2005 as a supplier of tidal stream turbines, SAE quickly
grew to include development of tidal stream projects and is the majority owner of
MeyGen, the world’s largest tidal stream energy project._

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