Danske Commodities has been appointed to optimize Cero Generation’s 70 MW/140 MWh Lower Larks battery energy storage system in the UK under a seven-year tolling agreement. The partnership will support battery performance, strengthen contracted revenues, and enable greater renewable energy integration ahead of commercial operations in Q2 2027.
Cero Generation has selected Denmark-based energy trader Danske Commodities as the optimization partner for its Lower Larks Battery Energy Storage System (BESS) in Bristol, United Kingdom. The agreement covers the operation of the 70 MW/140 MWh battery through a seven-year tolling arrangement designed to optimize energy trading and improve revenue certainty once the project enters commercial operation in the second quarter of 2027.
Lower Larks is being developed by Cero Generation alongside its UK development partner, Enso Energy. The battery will have the capacity to store 140 MWh of electricity, equivalent to the average daily power consumption of approximately 15,000 British households. The project forms part of the wider Larks Green development, adding a second battery system to an operational co-located solar photovoltaic (PV) and battery energy storage site.
Under the tolling agreement, Danske Commodities will assume the battery's market exposure and optimize its participation in electricity markets. The energy trader will manage charging and discharging strategies to maximize asset value while supporting grid flexibility. Such agreements provide developers with contracted revenues while allowing experienced market participants to manage wholesale power price risks.
Battery energy storage systems play an increasingly important role in balancing electricity grids with growing shares of renewable generation. By storing surplus electricity during periods of high renewable production and supplying it back to the grid when demand increases, batteries help reduce renewable curtailment, improve grid stability, and enhance overall system flexibility.
Cero Generation said the Lower Larks project strengthens its portfolio by combining battery storage with an existing solar asset, improving operational flexibility and long-term revenue stability. The company noted that the partnership with Danske Commodities provides a balanced commercial structure for the project through contracted optimization services.
Danske Commodities, which has more than 15 years of experience in the British electricity market, said the agreement expands its portfolio of flexible energy assets in the UK. The company will leverage its energy trading capabilities to optimize the battery's performance while supporting the integration of intermittent renewable generation into the electricity system.
The Lower Larks project reflects the growing adoption of long-term optimization and tolling agreements for utility-scale battery storage assets in the UK. As battery deployment continues to accelerate, such partnerships are becoming an increasingly important mechanism for securing predictable revenues while enhancing grid flexibility and enabling higher levels of renewable energy integration.