Capital Dynamics Kerry BESS: 170MW long-duration project enters build pipeline

The Capital Dynamics Kerry BESS acquisition, announced on 20 August 2026, marks the firm’s first foray into the Republic of Ireland and adds a 170MW long-duration battery energy storage system to a portfolio that already spans the broader Irish Single Electricity Market, according to Black Ridge Research.

The project sits at Knockanure, County Kerry, and was acquired from a group of private shareholders. It won planning consent in October 2025 and is currently working through a procurement process before construction can begin, so this is a ready-to-build asset, not a delivered one.

Grid connection already secured at Knockanure substation

The detail that matters most for project credibility is grid access. Capital Dynamics confirms the project has secured grid connection capacity of 170MW at the neighbouring 110kV Knockanure substation, which removes one of the most common bottlenecks facing battery storage developments across Europe. Having the connection capacity locked in at this stage is a material advantage; many projects of comparable scale are still queuing.

Capital Dynamics describes the Knockanure development as one of the first in the Republic of Ireland to offer a long-duration energy storage solution. The claim is plausible given the market’s relative immaturity on LDES, though “first” is always worth watching as the pipeline matures and competing assets push through planning.

Capital Dynamics Kerry BESS and the Irish storage market case

Barney Coles, Senior Managing Director and Co-Head of Clean Energy at Capital Dynamics, said the firm is ‘pleased to announce our first investment in the Republic of Ireland and add to our growing portfolio of LDES projects in the broader Irish Single Electricity Market.’ He added that ‘BESS projects are required to offer local businesses and communities an efficient and fast way to strengthen energy security and grid resilience’ at a time when renewable generation continues to grow.

On the market rationale, Coles said: ‘The Republic of Ireland represents one of the most compelling storage markets in Europe and combines a high and rising share of renewable generation with a clear policy commitment to decarbonise its grid.’ That framing is broadly consistent with EirGrid’s published ambitions for system flexibility, though the procurement process the project is currently navigating will determine what revenue model actually underpins the asset’s returns. The nature of that contract, whether a capacity payment, a DS3 ancillary services arrangement, or something else, will ultimately decide how robust the investment case is. Capital Dynamics has not yet disclosed those terms.

The acquisition was structured with advice from Pinsent Masons on legal matters, Afry on technical due diligence, and Mazars on the financial side. The involvement of three separate advisory streams on a ready-to-build acquisition signals the complexity that LDES transactions in relatively new markets tend to carry, particularly where grid connection, planning conditions and procurement rules each require independent scrutiny.

The Irish Single Electricity Market, which covers both the Republic and Northern Ireland, has been pushing hard on storage integration as wind penetration rises. Capital Dynamics already has exposure to the northern part of that market through its existing portfolio, and the Knockanure project extends that footprint south. Whether the cross-border portfolio logic translates into operational or commercial synergies remains to be demonstrated once the procurement process concludes and a build timeline is set.

With planning consent in place and grid capacity confirmed at the 110kV substation, the Knockanure project now depends on completing procurement before it can move to construction. That next stage is the one to watch.