RWE, the UK’s largest electricity generator and the leading power producer in Wales, has taken a final investment decision on its £200 million Pembroke Battery Storage project, marking a major milestone for the company’s largest storage initiative in the UK. The facility will form a central component of the Pembroke Net Zero Centre, a flagship decarbonisation hub in South Wales.
The announcement was made by First Minister for Wales Eluned Morgan during the Wales Investment Summit, signalling the Welsh Government’s commitment to attracting large-scale energy infrastructure projects that support the nation’s clean energy transition.
The project, which received planning approval in January and secured a contract in the UK’s latest Capacity Market auction, is scheduled to begin construction in the first half of 2026. Commissioning and operations are expected by the second half of 2028, subject to timely grid connection updates.
Spanning 5.1 hectares south of the existing Pembroke Power Station, the development will include 212 lithium-ion battery containers designed to deliver up to 350 MW of power for two hours, equivalent to 700 MWh of stored energy. Once operational, the system will be capable of powering nearly 300,000 UK homes for two hours during peak demand.
RWE Generation CEO Nikolaus Valerius said the project will play a critical role in stabilising the UK’s electricity grid amid rising renewable integration. “Battery storage systems are fast, efficient and competitive. Our Pembroke Battery will store surplus energy and deliver it when needed, strengthening energy security,” he said.
First Minister Eluned Morgan described the investment as further proof of Wales’ strategic importance in the UK’s clean energy transition. “The Pembroke Battery Storage facility will support our ambitions for a cleaner, more secure energy future while creating significant job opportunities across South Wales,” she said.
RWE UK Country Chair Tom Glover added that Wales has substantial potential across wind, solar, hydro and emerging technologies. He emphasised that the project reflects the government’s ambition to unlock clean energy opportunities for local communities.
In addition to its energy storage capabilities, the project includes measures to enhance biodiversity around the site, including new meadow habitat, native woodland and scrub planting, and the creation of a large pond to support wildlife.
RWE currently operates more than 3 GW of energy assets across 12 sites in Wales, including around 1 GW of renewables, representing roughly one-quarter of Wales’ renewable energy production. The company employs around 300 people in the region and has contributed over £21 million to local communities through wind farm benefit funds.
Globally, RWE operates 1.2 GW of battery storage and has 2.7 GW under construction, with plans to significantly expand its storage portfolio as part of its long-term energy transition strategy.
