Energy giant RWE has confirmed financial closure on a £200m battery storage investment in Pembrokeshire.

The investment in Pembroke was confirmed at the Welsh Government's Wales Investment Summit at the ICC Wales in Newport.

The RWE Pembroke Battery scheme received planning consent in January this year and was also successful in the Ƶ's latest capacity market auction.

Construction will start in the first half of 2026, with commissioning and operations expected in the second half 2028, subject to receiving an updated and timely grid connection.

The storage system would be located on a 5.1-hectare area to the south of RWE’s Pembroke Power Station and comprises of 212 lithium-ion battery containers.

Once constructed and fully operational, the battery could continually discharge up to 350 megawatts (MW) of electricity directly into the grid for two hours. That’s equal to 700 megawatt-hours (MWh) of stored energy, or equal to keeping the lights on for two hours for almost 300,000 typical Ƶ homes (1) .

Nikolaus Valerius, chief executive, RWE Generation SE, said: “In a dynamic energy world with more and more renewable energy, there is an increasing need for mature technologies that can instantly support the electricity grid. Battery storage systems are ideal for this because they are fast, efficient and competitive.

"Our Pembroke Battery is our Ƶ flagship storage project and will make an important contribution to stabilising the Ƶ energy market by efficiently storing surplus energy and feeding it into the national grid in a targeted manner when required.

First Minister for Wales, Eluned Morgan said; "This significant investment by RWE demonstrates Wales' central role in the Ƶ’s transition to clean and renewable electricity. The Pembroke Battery Storage facility will support our ambitions for a cleaner, more secure energy future while at the same time creating opportunities for good jobs and local communities across South Wales.

“Innovative projects like this showcase how Wales is leading the way in the development of renewable energy technology. This is helping to build a greener economy for generations to come."

Tom Glover, RWE Ƶ country chair, added: ” Wales has significant potential to lead the Ƶ’s clean energy transition across wind, solar, storage, hydro, and emerging technologies.

"Despite the challenges facing energy projects everywhere, we see a government determined to unlock this opportunity for the benefit of communities across Wales—something we strongly support.”