A Typical Large Scale Battery Storage System
What is a Large Scale Battery Storage System?
Battery Storage systems can connect to any method of electrical generation and are charged up by any unused energy. They then store the energy in a similar way to a regular household rechargeable battery to be used at a later point in time to provide an instant source of electricity. The benefits are that energy is stored and not rejected or lost, it can be released at high use periods to reduce peak demands and the release of energy can be timed with high tariff periods to maximise returns. It is ‘clean’ energy. This is also a rapidly evolving technology with planned schemes having a wide range of storage capacities.
(Source: National Grid)
Battery Storage Market Research:
The total pipeline of battery storage projects in the UK has now reached 14.9GW:
1.8GW ready to build (planning and grid connection approved)
6.9GW with planning permission (but without approved grid connection yet)
6.2GW proposed/in planning system
Energy storage has now become one of the most exciting and dynamic new growth areas within the global energy sector. The UK, in particular, has emerged as one of the top-3 global markets for storage deployment over the next few years.
With many companies seeking to benefit from battery storage deployment, knowledge of the sites and companies driving the market growth is extremely important
(Source: Solar Media Market Research - updated 6th April 2021)
More large-scale battery storage sites are on the horizon as barriers continue to fall
(Source: Solar Power Portal)
How exactly does a battery storage system work?
Battery energy storage systems are considerably more advanced than the batteries you keep in your kitchen drawer or insert in your children’s toys. A battery storage system can be charged by electricity generated from renewable energy, like wind and solar power.
Intelligent battery software uses algorithms to coordinate energy production and computerised control systems are used to decide when to keep the energy to provide reserves or release it to the grid. Energy is released from the battery storage system during times of peak demand, keeping costs down and electricity flowing.
This article is concerned with large-scale battery storage systems, but domestic energy storage systems work on the same principles.
The UK government estimates technologies like battery storage systems – supporting the integration of more low-carbon power, heat and transport technologies – could save the UK energy system up to £40 billion by 2050, ultimately reducing people’s energy bills.
(Source: National Grid Group PLC)
Planning Laws Improved for Battery Storage Projects
In July 2020 the government announced it would relax planning legislation to make it easier to construct large batteries to store renewable energy from solar and wind farms across the UK.
Removing barriers for energy storage projects, which are discouraging bolder investment decisions in larger battery facilities, could treble the number of batteries serving the electricity grid. It will help bring about storage cells that are 5 times bigger than those currently available.
The UK has the largest installed capacity of offshore wind in the world, however because the availability and speed of wind is not constant, energy can sometimes be produced when it is not needed and then lost.
Today’s move will see ministers introduce secondary legislation to remove barriers for storage projects above 50 MW in England and 350 MW in Wales, meaning more clean energy can be stored and used all year round.
(Source: Department for Business, Energy & Industrial Strategy)
Land Owner Benefits from having a Large Scale Battery Storage System on their land
Often our Developers will require an exclusive option to develop a circa 30 to 50+ Mega Watt (MW) Battery Storage System to connect to a suitable Overhead Line or Substation at or near to the Land Owner's land. This requires approximately 2 to 5+ acres of land. In comparison to solar there is clearly less acreage required.
Our Developers are prepared to offer, for a circa 30 to 50MW Battery Storage System, using circa 2 - 5 acres (but could be more or less), approximately £800 to £2,000 per MW per annum (as a guide) – payable quarterly with annual increases in line with the consumer price index annual increases. The exact land provided by the Land Owner needs to be mutually agreed of course.
Our Developers would require a long term lease which is usually in the region of circa 40 years on terms to be agreed.
A payment of approximately £4,000 to £6,000 (can vary depending on the Developer) and will be made to the Landowner on exchange of the Option Agreement.
Our Developers will cover the Landowner’s reasonable solicitors’ costs incurred in completion of the legal agreements – usually not to exceed £7,500 and with prior approval (again this can vary depending on the Developer).
Please note: if you are a member of the NFU, they may provide you with initial free independent advice regarding our offer and proposals or refer you to a respected professional in your area/vicinity.
All planning applications and related costs to be borne by our Developers.
*Note: Exact terms listed above will of course be agreed on a case by case basis for obvious reasons.