Alder King sees bright future for battery storage as market starts to power up

October 27, 2017
By

Bristol-based regional property agency Alder King has teamed up with innovative renewable energy firm Green Hedge to develop a string of battery storage schemes across the UK as the market starts to grow.

Green Hedge, which was established in Bath in 2010, has pioneered the Energy Barn concept of battery energy storage housed in steel-framed buildings and now has a diversified portfolio of projects and applications. 

Its partnership with Alder King has led to it signing options to develop multiple battery storage facilities in various locations across the UK over the past year.

When live, these schemes will provide a total capacity of over 150MW – the equivalent of 750 acres of solar panels. 

One of the partnership’s first schemes will be built on a 0.25-acre site of previously unused industrial land in Skelmersdale, Lancashire. The 10MW scheme will return a commencing rent to the landlord of £40,000 which will be reviewed annually for the remaining 25 years of the lease.

Alder King’s energy team has also agreed terms to site a 40MW scheme on two acres of agricultural land near Drax, Yorkshire. The commencing rent will be £80,000 per annum, subject to the scheme receiving planning permission in December.

Alder King’s planning team has secured planning permission for six battery schemes, with more applications pending. These were among the first battery storage schemes to receive planning consent in the UK.

Alder King lead energy partner Simon Smith said: “We are delighted to convert our early support for this exciting emerging technology into reality.

“Landowners have understandably been very keen to secure rents which compare very favourably to traditional commercial or agricultural rental values. It is no surprise that as the concept of battery storage moves to a demonstrable reality we are receiving increasing levels of enquiry from landowners keen to take advantage of rental values which vastly outstrip more established uses and will continue to do so for the 25-year lease term.

“Following this early success, we are now renewing efforts to find new commercial and agricultural sites and are keen to hear from landlords who believe they may have suitable plots of land.”

Green Hedge’s move into battery storage follows its success in solar where it has developed and realised 20 farms across the UK with a total installed capacity of 150 MW.

The huge potential of energy storage schemes was highlighted in a recent report by South West-based renewal energy body RegenSW and sponsored by Green Hedge, Bristol law firm TLT and Bristol-based ethical bank Triodos.

It concluded that energy storage was poised to grow rapidly in the UK towards 10GW in the 2030s – but action was needed to align the technology with market and policy signals if this potential is to be realised.

TLT head of energy & renewables and real estate Maria Connolly said: “Energy storage presents a real opportunity for the renewables sector. There is a need to balance the grid and ensure electricity is available at the right time and cost, and the recent EFR (enhanced frequency response) tender has shown how much investment is being put into rapid response technology. 

“In the short term we could see Behind the Meter (BtM) storage making a significant impact on the electricity grid. Large power users are starting to look at taking advantage of BtM and the revenue streams and cost savings available to them. 

“Longer term, co-locating storage with other renewable technologies including wind or solar developments could be part of the solution which make projects of this nature commercially viable in a subsidy free environment.”

Triodos Bank environment team manager Philip Bazin added: “Tt is clear from the advances made in other countries and now the UK that proven sustainable electricity storage solutions exist and that their cost is fast reducing. What we now need to make these solutions more financeable is a clear, long-term policy and regulatory framework to support the demand for these solutions and create an exciting sizeable new market in the UK.”

Green Hedge Energy UK managing director Niels Kroninger said: “Like a Swiss Army Knife, energy storage can deliver a wide variety of critical services. Unlike a Swiss Army Knife, already today it is cheaper than most alternatives, which means that we look forward to strong deployment without the need for any new subsidies.

“By making the different revenue streams work together better, BEIS, Ofgem and National Grid could eliminate risks to investors in storage, which in turn could deliver even greater savings to consumers.”

Comments are closed.

ADVERTISE HERE

Reach tens of thousands of senior business people across Bristol for just £120 a month. Email info@bristol-business.net for more information.