Canadian Solar announced a 420 MWh battery storage contract with Drax Group, with its e‑STORAGE subsidiary supplying a 60 MW/120 MWh AC installation at Marfleet, England, and a 150 MW/300 MWh AC installation at Neilston, Scotland. Both projects are being developed by Apatura and will join Drax’s FlexGen portfolio.
The Marfleet site is slated for delivery in the third quarter of 2026, while the Neilston project is expected to begin installations in early 2027. e‑STORAGE will provide fully integrated, commissioned battery systems based on its SolBank 3.0 technology and will also supply long‑term operational services under a service agreement that covers monitoring, preventive maintenance and performance analytics.
This contract expands Canadian Solar’s presence in Europe and adds a substantial, multi‑year revenue stream to its storage segment. The deal is part of the company’s strategy of pairing manufacturing capabilities with project development to capture high‑margin, recurring cash flow. As of March 13 2026, Canadian Solar’s e‑STORAGE business had a $3.6 billion contracted backlog, and this new agreement further strengthens that visibility.
Lee Dawes, Chief Operations Officer of Drax Group, said, "We are looking forward to working with e‑STORAGE and Apatura on the development of these battery storage assets. This is our first investment in short‑duration storage, and these assets will complement our existing generation portfolio." Giles Hanglin, Chief Executive Officer of Apatura, added, "Marfleet and Neilston represent important milestones in building the flexible, resilient energy infrastructure the UK needs to meet its decarbonization ambitions."
Canadian Solar’s recent Q4 2025 earnings report showed a net loss of $86 million and revenue of $1.2 billion, missing analyst expectations. The company’s Q1 2026 revenue guidance of $900 million to $1.1 billion was below consensus estimates. Despite these recent financial challenges, the new Drax contract provides additional revenue visibility and supports the company’s long‑term growth strategy.
The deal comes at a time when the UK is increasing its reliance on intermittent renewables, creating a growing need for short‑duration storage solutions. By securing this contract, Canadian Solar positions itself to capture a share of the expanding market for grid‑stabilizing battery storage as the UK moves toward a more renewable‑heavy energy mix.
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