BALNACRAIG BATTERY STORAGE LIMITED

Company Registration Number:
SC725328 (Scotland)

Unaudited statutory accounts for the year ended 31 December 2023

Period of accounts

Start date: 1 April 2023

End date: 31 December 2023

BALNACRAIG BATTERY STORAGE LIMITED

Contents of the Financial Statements

for the Period Ended 31 December 2023

Directors report
Profit and loss
Balance sheet
Additional notes
Balance sheet notes

BALNACRAIG BATTERY STORAGE LIMITED

Directors' report period ended 31 December 2023

The directors present their report with the financial statements of the company for the period ended 31 December 2023

Principal activities of the company

The principal activity of the company is the development of a battery energy storage facility and thereafter the carrying out of the operational management and maintenance activities associated with the storage and discharge of electricity into the electricity grid.



Directors

The director shown below has held office during the period of
1 April 2023 to 14 December 2023

Mark Thomas Wilson


The directors shown below have held office during the period of
14 December 2023 to 31 December 2023

Pedro Araujo Vinagre
Carmen Caminero Munoz


Secretary Douglas Colin Edward Campbell

The above report has been prepared in accordance with the special provisions in part 15 of the Companies Act 2006

This report was approved by the board of directors on
24 September 2024

And signed on behalf of the board by:
Name: Pedro Araujo Vinagre
Status: Director

BALNACRAIG BATTERY STORAGE LIMITED

Profit And Loss Account

for the Period Ended 31 December 2023

31 December 2023 31 March 2023


£

£
Turnover: 0 0
Cost of sales: 0 ( 72,210 )
Gross profit(or loss): 0 (72,210)
Administrative expenses: ( 2,183 )
Operating profit(or loss): (2,183) (72,210)
Profit(or loss) before tax: (2,183) (72,210)
Profit(or loss) for the financial year: (2,183) (72,210)

BALNACRAIG BATTERY STORAGE LIMITED

Balance sheet

As at 31 December 2023

Notes 31 December 2023 31 March 2023


£

£
Fixed assets
Tangible assets: 3 955,238 0
Total fixed assets: 955,238 0
Current assets
Debtors: 4 0 14,443
Total current assets: 0 14,443
Creditors: amounts falling due within one year: 5 ( 1,029,630 ) ( 86,653 )
Net current assets (liabilities): (1,029,630) (72,210)
Total assets less current liabilities: (74,392) ( 72,209)
Total net assets (liabilities): (74,392) (72,209)
Capital and reserves
Called up share capital: 1 1
Profit and loss account: (74,393 ) (72,210 )
Total Shareholders' funds: ( 74,392 ) (72,209)

The notes form part of these financial statements

BALNACRAIG BATTERY STORAGE LIMITED

Balance sheet statements

For the year ending 31 December 2023 the company was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These accounts have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

This report was approved by the board of directors on 24 September 2024
and signed on behalf of the board by:

Name: Pedro Araujo Vinagre
Status: Director

The notes form part of these financial statements

BALNACRAIG BATTERY STORAGE LIMITED

Notes to the Financial Statements

for the Period Ended 31 December 2023

  • 1. Accounting policies

    Basis of measurement and preparation

    These financial statements have been prepared in accordance with the provisions of Financial Reporting Standard 101

    Tangible fixed assets depreciation policy

    Tangible assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. Assets in the course of construction are not depreciated.

    Other accounting policies

    Going concern As of 31st December 2023, the company's current liabilities exceeded their current assets by £1,029,630 (£72,210 on the 31st March 2023). The company's ultimate parent, EDP Renewables S.A., committed to provide all the required funding to Balnacraig Battery Storage Limited for the activities relating with the development of its energy storage project. The funding has been agreed to a maximum limit of £37,000,000, which £7,770,537 was borrowed by August 2024. The funding is provided via shareholders current account (loan) from EDP Renovaveis Servicios Financieros S.A., with a starting date on the 14th of December 2023 and renewable annually on the anniversary date for 12 months. On the 22nd of July 2024 the company has entered into a cash pooling finance agreement with EDP Renovaveis Servicios Financieros S.A. and the other subsidiaries of EDP Renewables in the United Kingdom, replacing its shareholder current account agreement. The cash pooling agreement is a finance facility which aims to optimise the cash management of EDP Renewables in the United Kingdom by allowing the subsidiaries to borrow and lend cash directly from each other. The cash pooling facility is renewable annually on the anniversary date for 12 months and maintains the same maximum funding limit as the shareholder current account mentioned above. The directors have reviewed the company’s project development, budget, funding sources, risks and potential mitigation actions for the period extending at least 12 months from the approval of these financial statements. Following this review, they are satisfied that the company has access to adequate resources to continue funding the development and construction phases of the project in the future. Accordingly, the directors have prepared the financial statements on a going concern basis. Cash at bank and in hand Cash and cash equivalents include cash in hand and deposits held at call with banks. The company has no bank overdrafts. Taxation Current taxes are based on the results shown in the financial statements and are calculated according to local tax rules, using tax rates enacted or substantially enacted by the balance sheet date. Foreign currencies Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the year are included in profit or loss. Critical accounting judgements and key sources of estimation uncertainty In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the year in which the estimate is revised, if the revision affects only that year, or in the year of the revision and future years if the revision affects both current and future years. The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below. Critical judgements Impairment of assets under construction A review of impairment indicators carried out by management did not identify any indicators of impairment over the carrying value of assets under construction. The directors conclude that the carrying value is supported by the future cashflows that will be generated from generation of electricity and after careful consideration on the progress of the underlying development of the wind farm, the project is considered viable technically and economically. At each reporting end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs. Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cashflows have not been adjusted. If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase. Financial liabilities The company recognises financial debts when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either "financial liabilities at fair value through profit or loss" or "other financial liabilities". Other financial liabilities Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.

BALNACRAIG BATTERY STORAGE LIMITED

Notes to the Financial Statements

for the Period Ended 31 December 2023

  • 2. Employees

    31 December 2023 31 March 2023
    Average number of employees during the period 0 0

BALNACRAIG BATTERY STORAGE LIMITED

Notes to the Financial Statements

for the Period Ended 31 December 2023

3. Tangible assets

Land & buildings Plant & machinery Fixtures & fittings Office equipment Motor vehicles Total
Cost £ £ £ £ £ £
At 1 April 2023 0 0
Additions 955,238 955,238
Disposals
Revaluations
Transfers
At 31 December 2023 955,238 955,238
Depreciation
At 1 April 2023 0 0
Charge for year 0 0
On disposals
Other adjustments
At 31 December 2023 0 0
Net book value
At 31 December 2023 955,238 955,238
At 31 March 2023 0 0

Assets in the course of construction are not depreciated.

BALNACRAIG BATTERY STORAGE LIMITED

Notes to the Financial Statements

for the Period Ended 31 December 2023

4. Debtors

31 December 2023 31 March 2023
£ £
Prepayments and accrued income 0 14,443
Total 0 14,443

BALNACRAIG BATTERY STORAGE LIMITED

Notes to the Financial Statements

for the Period Ended 31 December 2023

5. Creditors: amounts falling due within one year note

31 December 2023 31 March 2023
£ £
Bank loans and overdrafts 1,011,694 0
Trade creditors 0 86,653
Accruals and deferred income 17,936
Total 1,029,630 86,653