News

Renewables Infrastructure makes battery storage investment

The Renewables Infrastructure Group says that it has exchanged contracts to acquire the right to develop three battery storage sites in the North of England. Two of the projects, which when built will total about 165MW with a two-hour duration, are scheduled for grid connection and commencement of operations in 2024 and 2025. The third site, which has a capacity for about 85MW also with a two-hour duration, will be built later in line with its grid connection date, which is in 2029, although it may be possible to bring this date forward.

Utility scale batteries such as these provide grid supporting services and trade in the wholesale power market, with both activities helping to stabilise the electricity system.

These projects help diversify the portfolio as their revenues are expected to have a low correlation to moves in the wholesale power prices received by renewables generators. In order to provide more options to generate revenue, the battery storage is being configured as a two-hour energy storage system, which is at the longer end of most existing installations. This extends the trading options available in the wholesale market (taking advantage of intra-day fluctuations in prices). This part of the revenue streams available to battery storage projects is much larger than contracts available from the grid.

The sites have been developed by and acquired from Aura Power Developments Limited. They already have land rights, planning permission and grid connection agreements secured. Renewable Energy Systems is being contracted to progress the development of the projects through the procuring of equipment and construction. The managers (InfraRed and Renewable Energy Systems) say that they are mindful of the sustainability considerations in relation to battery storage equipment, particularly in relation to the supply-chain, which will be reflected in the procurement framework.

Once the first two projects are built (expected in 2025) the investment will represent approximately 4% of the portfolio, by value.

[This is an interesting move by TRIG, but as the announcement suggests, it will be some time before these projects are impacting on TRIG’s revenues.]

TRIG : Renewables Infrastructure makes battery storage investment

1 thought on “Renewables Infrastructure makes battery storage investment”

Leave a Reply

Your email address will not be published. Required fields are marked *

Please review our cookie, privacy & data protection and terms and conditions policies and, if you accept, please select your place of residence and whether you are a private or professional investor.

You live in…

You are a…

Exit mobile version