Ampeak Energy (LON:AMP) has achieved an important construction milestone at its flagship AW1 battery storage project in South Wales, with Longspur Research describing the progress as a clear positive for the company’s development strategy.
The latest research note from Longspur Research, published 11th November 2026, highlights the successful delivery of all batteries and major infrastructure components for the 240MWh project at Uskmouth Sustainable Energy Park.
With the project on schedule for energisation later in November and commercial operations expected in the first quarter of 2027, Ampeak is approaching an important stage in its transition towards becoming an operator of battery energy storage assets.
Research analyst Adam Forsyth maintains a central valuation estimate of 12.5p per share, compared with the 1.7p share price quoted in the report. This represents substantial potential upside, although the valuation depends on future project delivery, funding arrangements and electricity storage revenues.
Ampeak Energy Reaches Major AW1 Construction Milestone
Ampeak has confirmed the successful delivery of all 55 batteries, inverters, twin skids and the main grid transformer required for the first phase of its AW1 battery energy storage system (BESS).
The equipment was delivered to the Uskmouth site over just 22 days, following completion of foundation and pre-installation work.
The milestone is particularly significant because it brings the 240MWh project closer to energisation and the commencement of commercial operations.
Commenting on the development, Longspur Research analyst Adam Forsyth writes:
“We view this as a clear positive, highlighting on-time execution on the project.”
The research notes that the construction progress supports the existing timetable, with energisation anticipated later in November 2026 and full commercial operations targeted for the first quarter of 2027.
Successful completion would represent an important step in Ampeak’s strategy to generate revenue from its battery storage portfolio.
Plans to Double AW1 Battery Storage Capacity
Beyond completing the initial phase, Ampeak is progressing plans to double AW1’s battery storage capacity from 240MWh to 480MWh.
The expansion has been considered during construction of the existing facility, with space retained between battery installations and foundations already prepared for additional equipment.
This approach should help minimise future construction disruption and reduce the time and cost associated with increasing capacity.
Longspur highlights that Ampeak intends to reach financial close for the expansion shortly after the initial 240MWh project becomes operational.
The additional capacity could provide a further source of revenue as Ampeak expands its participation in the UK electricity storage market.
However, the expansion remains dependent on securing the necessary financing and completing the development programme.
Ampeak Energy’s Growing Battery Storage Pipeline
The AW1 milestone follows a busy period for Ampeak, including progress on other projects within its development portfolio.
In September 2026, the company sold a 24.7% interest in AW1 to JBR Energy Holdings Ltd.
This followed the project reaching financial close in 2025.
Ampeak has also secured planning permission for two further battery storage developments.
Key operational highlights include:
- AW1 battery storage project: 240MWh, targeting full commercial operations in Q1 2027.
- AW1 expansion: Planned increase in capacity to 480MWh.
- AW2 project: Planning permission secured for a 1,250MWh development.
- MeyBESS project: Planning permission secured for a 1,200MWh battery storage facility.
- AW1 investment: Sale of a 24.7% project stake to JBR Energy Holdings in September 2026.
- Construction progress: All 55 batteries and major infrastructure components successfully delivered.
These developments demonstrate the scale of Ampeak’s battery storage ambitions, although bringing the wider pipeline into operation will require additional investment.
Uskmouth Energy Park Provides Strategic Advantages
Ampeak’s battery storage strategy is centred on making use of existing electricity grid connections at its sites in Wales and Scotland.
Its Uskmouth Sustainable Energy Park occupies the site of a former coal-fired power station, providing an opportunity to redevelop established energy infrastructure for modern electricity storage requirements.
Battery storage systems can absorb electricity when supply is plentiful and release it when demand increases, helping balance the electricity network.
As Britain continues to increase its reliance on renewable energy generation, storage facilities are expected to play an important role in managing fluctuations in electricity supply.
Ampeak is seeking to benefit from this growing requirement through its portfolio of grid-connected development sites.
The company also retains its MeyGen tidal energy interests in Scotland, providing exposure to another area of renewable electricity generation.
Longspur Research Values Ampeak Energy at Up to 13.2p
Longspur Research maintains three valuation scenarios for Ampeak Energy.
- Low-case valuation: 3.0p per share.
- Central valuation: 12.5p per share.
- High-case valuation: 13.2p per share.
The central valuation is based on a discounted cash flow model incorporating the development of existing grid-connected battery storage capacity and income from the operating MeyGen tidal turbines.
The model assumes a battery storage revenue spread of £100/MWh and that future project equity requirements are funded through new equity raises at the parent company level.
Longspur’s low-case valuation uses market evidence from recent bidding for UK battery storage assets, adjusted for AW1’s development stage and Ampeak’s outstanding debt.
The high-case scenario incorporates additional value from the company’s wider battery storage pipeline, while allowing for potential shareholder dilution associated with future equity financing.
At the 1.7p share price recorded in the research, the central valuation is more than seven times the quoted price.
However, this difference should be viewed alongside the company’s substantial debt, funding requirements and the uncertainty associated with bringing further projects into operation.
Financial Forecasts Point to Potential Improvement in 2027
Longspur’s financial projections indicate that 2026 will remain a challenging year for Ampeak, with revenue forecast to decline before recovering in 2027.
Key financial forecasts include:
- 2026 revenue: £6.14 million.
- 2026 EBITDA: Negative £5.19 million.
- 2026 pre-tax loss: £16.39 million.
- 2026 forecast net debt: £116.71 million.
- 2027 revenue: £24.73 million.
- 2027 EBITDA: £16.45 million.
- 2027 pre-tax profit: £190,000.
- 2027 forecast net debt: £100.98 million.
Longspur expects AW1 to begin contributing project income from 2027, while development-related revenues are also expected to support the projected recovery.
The financial model assumes net debt will decline after 2026, although leverage remains material.
There are also potential funding challenges associated with further expansion, with the broker’s model incorporating an equity raise in 2028 that could potentially be replaced by project financing.
These figures represent broker estimates rather than guaranteed future results.
What Could Drive Ampeak Energy’s Next Stage of Growth?
Longspur identifies further battery storage construction milestones and improving battery storage economics as important potential catalysts.
The immediate priority is successful energisation of AW1, followed by the commencement of commercial operations.
Progress towards financing the planned expansion to 480MWh would provide another indication of the company’s ability to develop its project portfolio.
Over the longer term, the AW2 and MeyBESS projects represent additional opportunities to increase Ampeak’s operational capacity.
Nevertheless, financing remains a central consideration.
Longspur acknowledges that future battery storage revenues, development execution and potential changes to grid connection arrangements could affect project economics and valuations.
The MeyGen tidal expansion also requires additional funding.
Final Thoughts
Ampeak Energy’s successful delivery of all major AW1 battery storage components marks tangible progress towards bringing its flagship project into commercial operation.
With energisation expected in November 2026 and commercial operations targeted for early 2027, the company is approaching a milestone that could help establish a recurring revenue stream from battery storage.
The planned AW1 expansion and wider pipeline of consented projects provide additional development opportunities.
Longspur Research’s central valuation of 12.5p per share suggests significant potential value relative to the share price recorded in its latest note, although realising that value will depend on successful project execution, future revenues and access to funding.
For Ampeak, the immediate focus remains on completing AW1 and demonstrating the commercial potential of its battery storage strategy.
