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A former coal-fired power station in Newport is expected to become one of the UK’s largest battery energy storage plants.

Uskmouth B, near the village of Nash to the south of the city, generated electricity for around 50 years before it was mothballed.

Now, Simec Atlantis Energy is preparing to transform the site with a project anticipated to create more than 500 jobs.

The Cardiff Capital Region has confirmed an £8.5 million loan for the project, which Newport Council’s leader said is a “tremendous economic and sustainable energy opportunity” for the city.

Battery energy storage systems (BESS) capture electricity when it can be produced at its cheapest, and then released back into the grid when there is higher demand for power.

The aim of building facilities like the proposed BESS for Newport is to reduce energy costs and stabilise the local grid.

Planning permission for the battery plant was granted in early 2024, with city councillors supporting the application on climate grounds.

A few years earlier, the idea of reviving Uskmouth as a waste pellet-burning power station had been proposed, but was later withdrawn in favour of the battery storage plan.

The £8.5 million loaned by the Cardiff Capital Region (CCR) – a partnership of ten local authorities including Newport – will complement a reported £56.5 million of private investment in the project.

“Repurposing the former power station at Uskmouth delivers multiple benefits for local communities, businesses, the environment and wider society,” said Cllr Andrew Morgan, who leads the CCR’s Strategic Premises Fund. “This project demonstrates what can happen when the public and private sectors combine to support our energy needs for the future.”

Cllr Dimitri Batrouni, the leader of Newport City Council, added: “This project represents a tremendous economic and sustainable energy opportunity for Newport. 

“I’m excited about what this can deliver for people in Newport and across the region, with employment opportunities, skills development for young people through apprenticeships, and delivering cutting-edge infrastructure projects that align with our regional ambition to grow the green economy.”