Rural spectator: Battery storage and Gas-to-Grid opportunities
The intermittent output of decentralised renewable electricity schemes, often mismatched with daily and seasonal increases in demand, has created additional opportunities for landowners. A number of developers are seeking sites for battery storage systems or established methods such as gas-to-grid generation. As with renewable schemes, the availability of a connection into the grid network, with adequate capacity in the local area, is critical.
11 Jul 2016
2 MINUTE READ
Battery storage sites
- Standardised agricultural or industrial building or container, housing rows of batteries, allowing electricity from the grid to be stored and fed back to the grid when it is required.
- Lithium-ion or lead acid batteries store the electricity at DC and the invertors convert AC to DC and DC to AC.
- Either a suitable existing building with a remaining lifetime of 25 years or a new building (constructed at no cost to the landowner) or a suitable site for containers.
- Agricultural or industrial setting.
- Suitable as a standalone system or integrated into an energy system to a renewable asset such as wind turbines or solar panels.
Gas-to-grid generation sites
- Gas-to-grid generation provides short-term standby power to the national grid in order to help balance the grid system.
- Requires a mains gas connection (medium, intermediate or high pressure) and an electricity connection.
- Agricultural or industrial setting.
Potential sites should be…
- Freehold, vacant possession (or the ability to secure possession at short-notice).
- 0.25 to 4 acres (existing buildings circa. 10,000 sq ft).
Level land. - Close proximity to electrical network (11 or 33 kv) or close to a substation.
- For gas-to-grid generation also close proximity to a gas connection (medium, intermediate or high pressure).
- Good vehicular access.
Potential sites should not be…
- In a greenbelt, national park or AONB (unless next to an existing complex of buildings).
- In flood zone 2 or 3 (flood zone 1 is acceptable).
Near a listed building. - Subject to an Agricultural Holdings Act or long Farm Business Tenancy without a provision allowing the landowner to resume possession of part on short-notice.
- Reliable on third party access or cable easements.
Landowner benefits…
- Turn-key approach to the development, from site assessment to the construction and operation of the asset.
- 25 year lease to provide long term rental income, with annual RPI linked reviews.
- Attractive form of farm diversification.
- If a new building is constructed, the landowner gets the building for free at the end of the lease (with all equipment removed).
- Option premium, plus contribution towards professional costs.
The next steps
Do you have a gas main crossing your land and/or an 11 or 33 kv electricity line? If you do then there may be the opportunity for a battery storage site or gas-to-grid generation site.
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