Capital Dynamics has acquired a ready-to-build battery energy storage system (BESS) project in Knockanure, County Kerry, in the Republic of Ireland, marking the investment firm’s first investment in the country.
The project, acquired from a group of private shareholders, has secured 170MW of grid connection capacity at the neighbouring 110kV Knockanure substation and is expected to be among the first long-duration energy storage (LDES) projects to be delivered in the Republic of Ireland under EirGrid’s classification.
Capital Dynamics said the project received planning consent in October 2025, with procurement and delivery planning now underway.
The four-hour project will provide a total storage duration of 680MWh when operating at its full 170MW capacity. By storing electricity when generation exceeds demand and discharging it when the system needs additional power, the BESS is designed to provide greater flexibility and support grid stability.
Storage to support Ireland’s renewable growth
According to Capital Dynamics, the project comes as the Republic of Ireland increases its reliance on renewable electricity while facing rising levels of renewable curtailment. The company said additional flexibility will therefore be needed to accommodate renewable generation and strengthen the country’s energy security.
“LDES projects therefore represent an essential part of the Republic of Ireland’s energy security and grid flexibility,” Capital Dynamics said.
Barney Coles, senior managing director and co-head of Clean Energy at Capital Dynamics, said the company is pleased to make its first investment in the Republic of Ireland and expand its portfolio of LDES projects across the broader Irish Single Electricity Market.
“At a time when renewable generation continues to grow, BESS projects are required to offer local businesses and communities an efficient and fast way to strengthen energy security and grid resilience,” Coles said.
Capital Dynamics described the Republic of Ireland as one of Europe’s most compelling storage markets, pointing to its high and growing share of renewable generation and its policy commitment to decarbonising the electricity grid.
The company said these factors are creating structural demand for BESS solutions as the country continues to develop its low-carbon energy network.
The acquisition represents Capital Dynamics’ first investment in the Republic of Ireland and adds to its wider portfolio of LDES projects in the Irish Single Electricity Market.
Capital Dynamics was advised on the transaction by Pinsent Masons on legal matters, Afry on technical matters and Mazars on financial matters.