Editing Openai/6914efcd-d7d8-800a-85de-4212b5b63948 (section)

=== Company repeatedly says USEP can support ~3.5 GWh of BESS and they plan to expand designs to 4-hour/5-hour durations to double energy capacity of installed MW. Recent investor slides and press say the company targets 1,800 MWh initially and to expand to 3,600 MWh by 2035 (company strategic statements), and investor materials talk up to 4.3 GWh enterprise value metrics when including more projects. Ampeak Energy<ref>{{cite web|title=Ampeak Energy|url=https://ampeak.energy/wp-content/uploads/2025/07/270190-SAE-Annual-Report-2024-CL-web.pdf|publisher=Ampeak Energy|access-date=2025-11-13}}</ref> ===

Mechanically, that’s why the group’s potential value is large in my Base/Bull: once AW1 shows operational optimisation (EDF optimisation deal) and AW2 + AW3 + other Uskmouth assets are either built or sold into joint ventures, there are three ways the group can realise value:
# Operate and monetise (IPP route) — keep majority ownership and collect asset cashflows (my DCF route).
# Sell project stakes — accelerate cash and limit plc dilution (company has already sold development rights to other developers historically). That reduces long-term EBITDA but gives immediate cash for redevelopment or debt paydown.
# Asset Re-rating — market valuations per MWh for operating BESS in the UK can be large (company cited ~£430k/MWh enterprise value comparisons on investor slides), which means building and retaining even a majority stake creates sizable enterprise value that can exceed the plc’s current market capitalization by multiple times. Ampeak Energy<ref>{{cite web|title=Ampeak Energy|url=https://ampeak.energy/wp-content/uploads/2025/11/Ampeak-investor-Day-Presentation-FINAL.pdf|publisher=Ampeak Energy|access-date=2025-11-13}}</ref>