What Varco Energy does

Varco Energy is a UK-based battery storage asset owner and operator that develops, owns, and operates grid-scale battery energy storage systems (BESS) across the United Kingdom. The company was founded with backing from Adaptogen Capital's specialist BESS investment fund and operates as an asset-only vehicle, with no disclosed in-house EPC or OEM manufacturing capability. Varco secured £58 million in debt financing from NatWest in September 2023 (comprising a £50M capex facility, £8M VAT facility, and an interest rate hedging facility) to fund its initial project pipeline.

The company's core technology is lithium-ion BESS deployed for utility-scale grid applications, incorporating advanced grid-forming capabilities for voltage and frequency regulation. Varco leverages a partner-led delivery model: GE Vernova supplies FLEXInverter, FLEXReservoir, and FlexIQ solutions (Native River, Sambar Power, Bradford West) plus 275kV high-voltage transformers; Fluence Energy delivers the Gridstack Pro 5000 platform with grid-forming capabilities (Sizing John); Ethical Power Connections provides balance-of-plant and independent connection provider services; and a NHOA Energy / IQA-Elecnor consortium delivers the Old Allen Road project. Asset management and trading are supported by Arenko's Nimbus Performance software across nearly 160MW/377MWh of capacity.

Varco's revenue model is anchored on three streams contracted with UK grid operators: (i) usage-based grid balancing services including frequency regulation and reserve capacity, (ii) recurring revenue from UK Capacity Market participation, and (iii) transaction-based wholesale power market trading. The customer base is concentrated on two off-takers — NESO (National Energy System Operator) and National Grid — both government-affiliated. Operational projects include Native River (57MW/138MWh, commercial operations from April 2025) and Sizing John Phase 1 (57MW/138MWh, late 2025); Sizing John Phase 2 (85.5MW/201MWh, Q4 2026 target), Bradford West (100MW/250MWh, Q2 2027 target), and Old Allen Road (100MW/244MWh, 2027 target) are in construction or contracted. The company's stated target is 350MW of operational BESS capacity by end of 2027, aligned with the UK government's 23–30GW energy storage target for 2030.

Name

Varco Energy

Legal name

Varco Energy

Website

https://varco.energy

Company type

Private

Founded year

2023

Operating status

Operating

Headcount range

1–10 employees

Short description

Varco Energy is a UK-based battery storage asset owner and operator that develops and operates utility-scale lithium-ion BESS projects, providing grid-balancing, frequency regulation, and capacity market services to NESO and National Grid across multiple UK sites.

Ownership category

akta.pro rank

Product category

Energy Storage Services

NAICS

Electric Bulk Power Transmission and Control (221121), Electric Power Generation (22111), Electric Power Generation, Transmission and Distribution (2211)

SIC

Electric, Gas & Sanitary Services (4900), Cogeneration Services & Small Power Producers (4991)

akta.pro primary industry

BESS OEMs (Containerized Systems, Racks, Turnkey Solutions) (EUAFAAAC)

akta.pro secondary industries

System Operations & Control Centers (EMS/SCADA for Transmission) (EUADAAAG), Energy Storage & Microgrid Electrical Infrastructure (BESS, Controls) (IMAFAHAE)

Keywords

• Battery energy storage
• Grid balancing services
• Utility-scale BESS
• Frequency regulation
• Capacity market services

Headquarters

HQ city

London

HQ country

United Kingdom

HQ region

Europe

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Infrastructure, Supply Chain, Technology or R&D, Personnel, Operations, Others

Revenue model

1. Grid Balancing Services: Varco earns revenue by providing grid-balancing services including frequency regulation, reserve capacity, and voltage support to grid operators (NESO/National Grid)
2. Capacity Market Revenue: Revenue generated through participation in the UK Capacity Market, providing energy security through capacity commitments
3. Wholesale Power Market Trading: Trading on wholesale power markets to load shift excess renewable energy into periods of peak demand

Go-to-market motion1 record

Distribution channels1 record

Marketing channels3 records

Core offering

Varco Energy is a UK-based battery storage asset owner and operator that builds, owns, and operates utility-scale Battery Energy Storage Systems (BESS). The company delivers grid-balancing services including frequency regulation, voltage support, reserve capacity, and load shifting to UK grid operators such as NESO and National Grid, while participating in the UK Capacity Market and trading on wholesale power markets.

Product overview

Varco Energy is a pioneering UK-based battery storage asset owner and operator that builds, owns, and operates grid-scale energy storage solutions. The company's portfolio includes operational BESS projects (Native River, Sizing John Phase 1) and projects under construction or in development (Sizing John Phase 2, Sambar Power, Bradford West, Al Boum, Old Allen Road). These projects provide grid-balancing services, frequency regulation, voltage regulation, load shifting, and renewable energy integration support for the UK electricity system, contributing to the nation's net-zero transition.

Differentiator

Problem solved

Functional benefit

Products and services

• Native River Battery Energy Storage System One of the UK's longest-duration transmission-connected battery installations at 57MW/138MWh, delivering grid-balancing services including frequency regulation, reserve capacity, and load shifting to support renewable energy integration. Located south of Liverpool in the congested Mersey Ring, it is contracted with UK grid operators.
• Sizing John Phase 1 57MW/138MWh BESS project at Rainhill substation near St Helens, offering fast-acting flexibility services for the UK grid. Delivered in partnership with Fluence Energy and designed for potential expansion to match growing grid demand.
• Sizing John Phase 2 86MW/201MWh expansion leveraging groundwork laid by Phase 1's technical and stakeholder readiness, enhancing flexibility and reinforcing grid support using Fluence's Gridstack Pro 5000 with grid-forming capabilities.
• Sambar Power 48MW/102MWh BESS located at Indian Queens substation in Cornwall, supporting grid stability in a traditionally congested area and powering around 30,000 homes. Developed in collaboration with GE Vernova.
• Bradford West 100MW/250MWh grid-forming BESS located at Bradford West Substation in West Yorkshire, providing crucial grid stability in an area of high renewable output. Currently under construction, targeting energisation by Q2 2027.
• Al Boum Mid-scale BESS asset aligned with Varco's strategy of reinforcing localized grid flexibility and renewable energy support. Has been entered into the UK Long Duration Storage Subsidy program.
• Old Allen Road 100MW/244MWh BESS project in West Yorkshire, awarded to NHOA Energy and IQA-Elecnor consortium. Designed to provide grid-balancing services, frequency and voltage regulation, and renewable energy integration support for the UK electricity system. Scheduled to begin operations in 2027.

Quantifiable outcome

• Powers approximately 37,000-60,000 homes per 57-100MW project
• +2 more outcomes

Named customers2 records

Segments1 record

Ideal customer profiles1 record

Technology focussed Yes

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration1 record

Feature3 records

Partnerships

Six partnerships are on record, tiered core and important.

• NHOA EnergycoreTechnology or Integration · 23 June 2026NHOA Energy supplying storage systems for the 100MW/244MWh Old Allen Road BESS project in West Yorkshire as part of a consortium with IQA-Elecnor. NHOA Energy will deliver the turnkey EPC project.
• IQA-ElecnorcoreImplementation/ SI/ Consulting Partner · 23 June 2026Consortium partner with NHOA Energy handling balance-of-plant and interconnection works for the 100MW/244MWh Old Allen Road BESS project. Elecnor brings infrastructure and construction expertise for utility-scale battery storage deployment.
• ArenkoimportantTechnology or Integration · 13 September 2024Asset management software partnership using Arenko's Nimbus Performance software for optimization of nearly 160MW/377MWh of battery storage assets, enhancing performance insights and automated management capabilities.
• Ethical Power ConnectionscoreImplementation/ SI/ Consulting Partner · 9 October 2023Partnership for development of two 57MW battery assets (Native River and Sizing John). Ethical Power Connections provides Balance of Plant (BoP) work and acts as independent connections provider (ICP), including electrical, mechanical, and civil infrastructure for connection to National Grid's transmission network.
• Fluence EnergycoreTechnology or Integration · 13 September 2023Partnership for delivery of battery energy storage systems. Fluence delivers Sizing John project (57MW/137.5MWh) and has been selected to expand to 142.5MW/348.5MWh combined capacity using Gridstack Pro 5000 with grid-forming capabilities. Fluence brings industry-leading safety standards, market experience, and speed of deployment.
• GE VernovacoreTechnology or IntegrationStrategic partnership for battery energy storage system deployment. GE Vernova supplies complete BESS solutions including FLEXInverter, FLEXReservoir, and FlexIQ solutions for Varco's projects (Native River 57MW/138MWh, Sambar Power 47.5MW). GE Vernova also provides long-term service agreements and maintenance services using its national services team. GE Vernova is separately contracted to supply 275kV High Voltage Transformers for the Old Allen Road project.

Scale indicators9 records

Recent moves8 records

Expansion highlights6 records

Direct peers

• Harmony Energy: UK-based battery storage asset owner and operator with operational utility-scale BESS projects including Pillswood (200MW/400MWh). Directly comparable as a UK-only BESS owner/operator targeting Capacity Market and balancing service revenues with similar project sizes (50-200MW).
• Gresham House Energy Storage Fund: Listed UK investment trust that owns and operates a portfolio of utility-scale battery storage assets managed by Gresham House. Directly comparable as a UK BESS asset owner with portfolio of operational projects serving NESO and National Grid—Elliot Squire at Varco previously managed assets in this portfolio.
• Penso Power: UK-based developer and operator of grid-scale battery storage projects including the Minety BESS (200MW). Direct competitor in the same UK BESS asset ownership space, working with similar OEMs (Fluence, Tesla) and targeting the same grid services revenue streams.
• Field Energy: UK battery storage developer and operator focused on large-scale BESS projects. Comparable as a developer-owner of utility-scale storage in the UK targeting grid balancing services and capacity market revenues.
• Statera Energy: UK BESS developer and operator (backed by CIP/Copenhagen Infrastructure Partners) with operational and pipeline projects including the 400MW Thurcroft BESS. Comparable scale, sponsor-backed model, and UK grid service focus.
• Habitat Energy: UK-based battery storage optimization and trading company that also operates its own portfolio. Comparable as a specialist BESS trading and asset management player operating in the UK balancing mechanism—Varco uses Arenko Nimbus, a comparable platform to Habitat's offering.
• Zenobē: UK-headquartered owner and operator of battery storage assets with operational projects in the UK including large transmission-connected BESS sites. Comparable as a vertically integrated BESS owner/operator with project sizes similar to Varco's pipeline.
• Low Carbon: UK renewable energy developer with growing battery storage portfolio including operational BESS projects. Comparable as a UK-only developer-operator with overlapping target customers (grid operators) and similar project economics in the Capacity Market.

Broad incumbents

• Statkraft: Norwegian state-owned renewable energy major with a growing UK battery storage portfolio. Comparable as a large-scale grid-scale BESS operator and trader in the UK, though operating as part of a much broader generation and trading portfolio rather than a specialist BESS pure-play.
• RWE: Major European utility with significant UK battery storage pipeline including large transmission-connected projects. Comparable as a UK BESS asset owner participating in the same grid services markets, but operating BESS as one segment within a diversified generation portfolio.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

• LinkedInlinkedin.com/company/varco-energy

Revenue estimate

Valuation estimate

Number of profiles

Profiles7 records

Funding overview

Funding rounds1 record

Investors1 record

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Varco Energy