The Anonymous Widower

The Chemical Engineer Magazine On Highview Power

This is said in the Wikipedia entry for The Chemical Engineer Magazine.

The Chemical Engineer is a monthly chemical engineering technical and news magazine published by the Institution of Chemical Engineers (IChemE).

I first read the magazine perhaps fifty years ago, when it explained a chemical process, I was working on at ICI.

It is one of several well-respected magazines published by UK scientific, medical and engineering institutions.

This article in the magazine is entitled Energy Stored As Liquefied Air: £300m Investment Triggers Construction Of UK’s First Commercial-Scale Plant.

These three paragraphs introduce the investment.

HIGHVIEW POWER has received £300m (US$379m) in funding to build the UK’s first commercial-scale liquid air energy storage plant (LAES), designed to balance peaks and troughs in power demand as more renewable energy sources are brought online.

Construction of the facility is now underway in Carrington near Manchester. It is scheduled to begin operations in early 2026 and the company predicts it will provide more than 700 jobs in construction and the supply chain.

The plant will have a storage capacity of 300 MWh and an output of 50 MW per hour for six hours.

The rest of the article is just two sections.

  • How Will Highview’s New Plant Work?
  • Why Is The Technology Needed?

This article in the magazine is an absolute must read.

June 25, 2024 Posted by | Energy, Energy Storage | , , , , , | Leave a comment

Centrica Invests In Renewable Energy Storage Capabilities To Boost UK’s Energy Security And Accelerate Transition To Net Zero

The title of this post, is the same as that of this press release from Centrica.

These two paragraphs are effectively headings.

Centrica plc announces a strategic partnership and £70 million investment in Highview Power and its first clean energy storage project in Carrington, Manchester.

Centrica’s investment will be a key part of a £300 million funding package to develop the first commercial-scale Liquid Air Energy Storage plant in the UK, which will boost the UK’s energy security and accelerate the transition to net zero.

These four paragraphs give more details on the deal.

The investment, which forms part of our plans to invest between £600m – £800m a year until 2028, will be structured as £25m of convertible debt at Highview Enterprises Limited, being the Highview Power holding company and £45m of debt funding at the Carrington Liquid Air Energy Storage project, phased over the project construction. The investment delivers several benefits to Centrica:

Robust standalone returns aligned with Centrica’s capital allocation framework and returns thresholds
Aligned to our green-focused investment programme targeting assets which complement our existing capabilities, provide balance to the portfolio, and align to the needs of the energy transition
Includes rights to equity participation and energy optimisation from future projects in Highview’s £9 billion project pipeline.

At a first look, it appears to give Centrica robust returns  and some security for their £70 million investment.

But it is the last paragraph that I like. Does it mean that Centrica can cherry-pick, the projects that it likes and fit its own objectives and expertise from Highview’s £9 billion project pipeline and take-up some equity?

Whatever it means, It looks like it will be good for Centrica.

Do the other partners have similar rights to equity?

Suppose Goldman Sachs have a long-term client in the Mid-West of the United States, who are an electricity generator, with perhaps half-a-dozen coal-fired power stations.

As the client needs to decarbonise and it is believed that Highview’s long duration batteries can replace small coal-fired power stations, it is likely that a Highview solution will at least be examined.

If the client goes down the Highview route, Goldman Sachs might like to continue their long-term relationship, by taking a share in the equity.

 

June 24, 2024 Posted by | Energy, Energy Storage | , , , | 2 Comments

Rio Tinto Punts On British Start-Up To Plug Renewables Gap

The title of this post is the same as that of this article on the Australian Financial Review.

The article is a must-read and these are a few points.

  • Highview is readying to take a big punt on the Australian market, with Rio Tinto and the Northern Territory government shaping up as potential customers.
  • Highview is very committed to Australia. We think Australia can be as big as the UK for us, given their ambitions,
  • Highview is working on concepts with Rio Tinto. And separate from Rio, we are well advanced in the Northern Territory with the government there to provide a solution to decarbonise the power grid.
  • The process uses existing hardware from the gas industry, and  the plant’s life should be at least 40 years – five times longer than a battery.
  • Highview could replace fossil-fuel gas plants in situ, and could also be an alternative to the more complex and capital-intensive option of pumped hydro.
  • Highview already had staff operating in Brisbane.
  • Highview was negotiating the long-term contract with the government in Darwin, and had engaged Australian banks to start testing the market for a local fundraising.
  • In Britain, Highview hopes to be putting four 2.5-gigawatt assets into planning this year – one in Scotland, three with Orsted in England.

As I said, the article is a must-read and it proves to me that Highview is on its way.

June 24, 2024 Posted by | Energy, Energy Storage | , , , , | 1 Comment

Are Goldman Sachs Stitching Together A Large Deal On Energy Storage?

In UK Infrastructure Bank, Centrica & Partners Invest £300M in Highview Power Clean Energy Storage Programme To Boost UK’s Energy Security, I talked about a deal to invest £300 million into energy storage company; Highview Power.

These three paragraphs  are from the Highview Power news item, on which I based my post.

Highview Power has secured the backing of the UK Infrastructure Bank and the energy industry leader Centrica with a £300 million investment for the first commercial-scale liquid air energy storage (LAES) plant in the UK.

The £300 million funding round was led by the UK Infrastructure Bank (UKIB) and the British multinational energy and services company Centrica, alongside a syndicate of investors including Rio Tinto, Goldman Sachs, KIRKBI and Mosaic Capital.

The investment will enable the construction of one of the world’s largest long duration energy storage (LDES) facilities in Carrington, Manchester, using Highview Power’s proprietary LAES technology. Once complete, it will have a storage capacity of 300 MWh and an output power of 50 MWs per hour for six hours. Construction will begin on the site immediately, with the facility operational in early 2026, supporting over 700 jobs in construction and the supply chain.

Note.

  1. The UK Infrastructure Bank is a is a British state-owned development bank.
  2. Centrica plc is an international energy and services company.
  3. Rio Tinto is a leading global mining group that focuses on finding, mining and processing the Earth’s mineral resources.
  4. The Goldman Sachs Group, Inc. is a leading global investment banking, securities and investment management firm.
  5. KIRKBI is the Kirk Kristiansen family’s private holding and investment company founded to build a sustainable future for the family ownership of the LEGO Group.
  6. Mosaic Capital are an American investment firm.

With six partners, that is just £50 million per partner.

As that sum is very much small change for the likes of these guys and the question of taking an equity stake is not mentioned in Highview Power’s news item, it looks like this deal could be a try-before-you-buy deal with some of the partners or a simple investment with others.

Consider.

  • Gresham House, Gore Street and others have proven that investing in lithium-ion batteries give a good return on investment.
  • The Carrington long duration energy storage facility will be located near to the 884 MW gas-fired Carrington power station. I suspect that Centrica and Rio Tinto will be interested to see how the hybrid power-station performs.
  • Could the Lego Group owners be looking at using solar power, wind power and a LDES to reduce the carbon footprint of their stores?

I would assume, that all the investors would get full details on the performance of the batteries.

Someone To Build The LDES

In Bilfinger Drives Highview Power’s Innovative Storage Project, Accelerating The Energy Transition, I describe how German company will build the Carrington LDES.

The Advantages Of An LDES over a BESS

This is only a short list, of the advantages I see.

  • An LDES is easily recyclable.
  • The LDES has less exotic materials.
  • An LDES can be built from zero-carbon steel.
  • Highview are claiming a 40-year life for their LDES.
  • Highview is already talking about 200MW/2.5GWh LDES systems.
  • Two 200MW/2.5GWh systems working together with a wind or solar farm, can replace a 400 MW gas- or coal-fired station.
  • I suspect one of Highview’s LDES systems could be placed offshore, if needed.

I also believe that Highview’s LDES systems could be incorporated into complex chemical plants to increase the efficiency.

Are Goldman Sachs Stitching Together A Large Deal On Energy Storage?

Everything now seems to be in place to build these LDES one after the other, to accelerate the energy transition.

With a good supply of orders and enough money to build each system, I cab see no reason, why several systems a month cannot be built and installed.

I have worked with companies like Goldman Sachs in the past, and I wouldn’t be surprised to find, that they have created the consortium, so that all members get the returns and recognition, they disserve.

Adding Lego Group To The Consortium Could Be A Masterstroke

The Lego Group has lots of stores and theme parks worldwide and a reputation for good design and environmental standards.

Last year, I wrote Bedford Depot’s Massive Solar Roof Helps Thameslink On Way To Net Zero. This was putting a solar roof on a rail depot, but surely buildings like this would be suitable for a Highview LDES.

June 23, 2024 Posted by | Energy, Energy Storage | , , , , , , , , , , , , , , , | Leave a comment

Bilfinger Drives Highview Power’s Innovative Storage Project, Accelerating The Energy Transition

The title of this post, is the same as that of this press release from Bilfinger, who are a European multinational engineering and services company.

This is the first paragraph of the Wikipedia entry for Bilfinger.

Bilfinger SE (previously named Bilfinger Berger AG) is a European multinational company specialized in civil and industrial construction, engineering and services based in Mannheim, Germany.

Fifty years ago, I was playing a very small part in the designing of complex chemical plants for ICI. My part was mainly to check, the mathematics and dynamics for the designs, the engineers wanted to use.

The experience certainly left me with the belief, that to design a world-class chemical plant is not an easy process.

So if I was needing a complex chemical plant, I would call in the experts.

A Highview Power energy  storage system, may not be a chemical plant, but it shares many of the factors of chemical plants, waterworks and sewage plants. So building one, needs a company, with wide experience, which Bilfinger certainly appear to have.

This paragraph from the press release, summarises Bilfinger’s roll in Hghview Power’s Manchester project to create a 50 MW/300 MWh battery based on Highview’s proprietary long duration energy storage system.

The scope of Bilfinger’s services ranges from the procurement of steel to extensive plant construction services, including mechanical, electrical, instrumentation, insulation, painting and structural steel work, along with the overall management of all aspects of construction, including civil works and equipment installation. As principal contractor, Bilfinger is committed to ensuring the highest safety standards on site.

In UK Infrastructure Bank, Centrica & Partners Invest £300M in Highview Power Clean Energy Storage Programme To Boost UK’s Energy Security, I described how Highview Power had recruited high-class backers to fix the companies finances.

It looks like the Bilfinger deal to build the first system, is the last piece of the jigsaw and will see Highview Power on its way.

June 22, 2024 Posted by | Energy, Energy Storage | , , , , | 1 Comment

Where’s The Plan, Rishi?

In RWE Goes For An Additional 10 GW Of Offshore Wind In UK Waters In 2030, I detailed how RWE intended to add an extra 10 GW of offshore wind to the seas around the UK.

As our current offshore wind capacity is around 15 GW, another 10 GW would surely be very welcome.

My post also outlined H2ercules, which is Germany’s massive  project to create a hydrogen network to bring hydrogen to Southern Germany.

I also gave details of the hydrogen hub at Wilhelmshaven, which is being built by Uniper to feed H2ercules with green hydrogen from around the world.

I believe that some of this hydrogen for H2ercules will take a short trip across the North Sea from UK waters, after being created by offshore electrolysers.

Rishi Sunak’s Manifesto Speech – June 11

I also reported on Rishi Sunak’s Manifesto Speech, which he made on June 11th. This is an extract

This document on the Policy Mogul web site is entitled Rishi Sunak – Conservative Party Manifesto Speech – Jun 11.

These are three paragraphs from the speech.

We don’t just need military and border security. As Putin’s invasion of Ukraine has shown, we need energy security too. It is only by having reliable, home-grown sources of energy that we can deny dictators the ability to send our bills soaring. So, in our approach to energy policy we will put security and your family finances ahead of unaffordable eco zealotry.

Unlike Labour we don’t believe that we will achieve that energy security via a state-controlled energy company that doesn’t in fact produce any energy. That will only increase costs, and as Penny said on Friday there’s only one thing that GB in Starmer and Miliband’s GB Energy stands for, and that’s giant bills.

Our clear plan is to achieve energy security through new gas-powered stations, trebling our offshore wind capacity and by having new fleets of small modular reactors. These will make the UK a net exporter of electricity, giving us greater energy independence and security from the aggressive actions of dictators . Now let me just reiterate that, with our plan, we will produce enough electricity to both meet our domestic needs and export to our neighbours. Look at that. A clear, Conservative plan not only generating security, but also prosperity for our country.

It is now nine days since Rishi made that speech and I can’t remember any reports about an energy security policy, which he outlined in the last paragraph of my extract from his speech.

He particularly mentioned.

  • New gas-powered stations
  • Trebling our offshore wind capacity
  • Having new fleets of small modular reactors.

He also said we would have sufficient electricity to export to our neighbours. As I said earlier some of this energy will be in the form of hydrogen, which has been created by offshore electrolysers.

If we are exporting electricity and hydrogen to Europe, this is likely to have three effects.

  • An improvement in Europe’s energy security.
  • H2ercules will improve and decarbonise German industry, using UK hydrogen.
  • The finances of UK plc will improve.

It looks like there will be winners all round.

Rishi also said this, in his speech.

As Putin’s invasion of Ukraine has shown, we need energy security too.

The gas-powered stations, offshore wind farms and the fleets of small modular reactors, will be part of the equation.

But I believe, we need three other components to complete our energy security.

  • The upgrading of the National Grid.
  • The building of four x 2 GW interconnectors between Scotland and Eastern England.
  • Large amounts of energy storage.

Note.

  1. The Great Grid Upgrade and the four x 2 GW interconnectors are being planned.
  2. In Huge Boost To UK Supply Chain As National Grid Launches The Great Grid Partnership With Seven New Industry Partners, All United In The Drive To Deliver The Great Grid Upgrade, I describe how National Grid has setup the Great Grid Partnership to deliver the Great Grid Upgrade.
  3. In UK Infrastructure Bank, Centrica & Partners Invest £300M in Highview Power Clean Energy Storage Programme To Boost UK’s Energy Security, I describe how the big boys do a deal with Highview Power to create affordable batteries for the UK and the world.
  4. In Grid Powers Up With One Of Europe’s Biggest Battery Storage Sites, I describe how the very large Swardeston BESS is to be built near Norwich.
  5. In Mercia Power Response & RheEnergise Working Together To Build Long Duration Energy Storage Projects In The UK, I describe another UK-developed long duration energy storage system, which is now being planned.
  6. In National Grid Shares Proposals For Green Electricity Projects In Lincolnshire And West Norfolk, Needed To Boost Home-Grown Energy Supplies And Progress Towards Net Zero, I describe National Grid’s projects in the East of England.
  7. In UK ESO Unveils GBP 58 Billion Grid Investment Plan To Reach 86 GW of Offshore Wind By 2035, I show how we’re not that far away from 86 GW by 2035.
  8. In 400k For National Grid Innovation Projects As Part Of Ofgem Fund To Help Shape Britain’s Net Zero Transition, I describe how National Grid is using innovation to help target net-zero by 2035.
  9. In Iberdrola Preparing Two East Anglia Offshore Wind Projects For UK’s Sixth CfD Round, I describe how Iberdrola  is getting 1.7 GW ready for commissioning in 2026.
  10. In National Grid To Accelerate Up To 20GW Of Grid Connections Across Its Transmission And Distribution Networks, I describe how National Grid are accelerating the development of the electricity networks. 10 GW of battery storage is a collateral benefit.

These ten projects, most of which are financed and/or underway, would appear to be good foundations, on which to build the Great Grid Upgrade.

It looks to me, that National Grid, RWE, Centrica, Iberdrola and others, by just doing what comes naturally have offered the next government a road to a future.

It will be interesting, what gets said before the election.

June 20, 2024 Posted by | Energy, Energy Storage, Finance, Hydrogen | , , , , , , , , , , , , , , , , | 6 Comments

UK Infrastructure Bank, Centrica & Partners Invest £300M in Highview Power Clean Energy Storage Programme To Boost UK’s Energy Security

The title of this post, is the same as that of this news item from Highview Power.

This is the sub-heading.

Highview Power kickstarts its multi-billion pound renewable energy programme to accelerate the UK’s transition to net zero in Carrington, Manchester.

These three paragraphs outline the investment.

Highview Power has secured the backing of the UK Infrastructure Bank and the energy industry leader Centrica with a £300 million investment for the first commercial-scale liquid air energy storage (LAES) plant in the UK.

The £300 million funding round was led by the UK Infrastructure Bank (UKIB) and the British multinational energy and services company Centrica, alongside a syndicate of investors including Rio Tinto, Goldman Sachs, KIRKBI and Mosaic Capital.

The investment will enable the construction of one of the world’s largest long duration energy storage (LDES) facilities in Carrington, Manchester, using Highview Power’s proprietary LAES technology. Once complete, it will have a storage capacity of 300 MWh and an output power of 50 MWs per hour for six hours. Construction will begin on the site immediately, with the facility operational in early 2026, supporting over 700 jobs in construction and the supply chain.

Note.

  1. The backers are of a high quality.
  2. The Carrington LDES appears to be a 50 MW/300 MWh battery.

It finally looks like Highview Power is on its way.

These are my thoughts on the rest of news item.

Centrica’s Involvement

This paragraph talks about Centrica’s involvement.

Energy leader Centrica comes on board as Highview Power’s strategic partner and a key player in the UK’s energy transition, supporting Carrington and the accelerated roll-out of the technology in the UK through a £70 million investment. The programme will set the bar for storage energy systems around the world, positioning the UK as the global leader in energy storage and flexibility.

I suspect that Centrica have an application in mind.

In Centrica Business Solutions Begins Work On 20MW Hydrogen-Ready Peaker In Redditch, I talk about how Centrica is updating an old peaker plant.

In the related post I refer to this news item from Centrica Business Systems.

This paragraph in the Centrica Business Systems news item, outlines Centrica’s plans.

The Redditch peaking plant is part of Centrica’s plans to deliver around 1GW of flexible energy assets, that includes the redevelopment of several legacy-owned power stations, including the transformation of the former Brigg Power Station in Lincolnshire into a battery storage asset and the first plant in the UK to be part fuelled by hydrogen.

As Redditch power station is only 20 MW, Centrica could be thinking of around fifty assets of a similar size.

It seems to me, that some of these assets could be Highview Power’s LDES batteries of an appropriate size. They may even be paired with a wind or solar farm.

Larger Systems

Highview Power’s news item, also has this paragraph.

Highview Power will now also commence planning on the next four larger scale 2.5 GWh facilities (with a total anticipated investment of £3 billion). Located at strategic sites across the UK, these will ensure a fast roll-out of the technology to align with UK LDES support mechanisms and enable the ESO’s Future Energy Scenario Plans.

Elsewhere on their web site, Highview Power say this about their 2.5 GWh facilities.

Highview Power’s next projects will be located in Scotland and the North East and each will be 200MW/2.5GWh capacity. These will be located on the national transmission network where the wind is being generated and therefore will enable these regions to unleash their untapped renewable energy potential and store excess wind power at scale.

So will the four larger systems have a 200MW/2.5GWh capacity?

They could, but 200 MW may not be an appropriate output for the location. Or a longer duration may be needed.

Highview Power’s design gives the flexibility to design a system, that meets each application.

Working With National Grid

Highview Power’s news item, also has this sentence.

Highview Power’s technology will also provide stability services to the National Grid, which will allow for the long-term replacement of fossil fuel-based power plants for system support.

Highview Power’s technology is also an alternative to Battery Energy Storage Systems (BESS) of a similar capacity.

How does Highview Power’s technology compare with the best lithium-ion systems on price, performance and reliability?

Curtailment Of Wind Farms

Highview Power’s news item, also has these two paragraphs.

This storage will help reduce curtailment costs – which is significant as Britain spent £800m in 2023 to turn off wind farms.

Highview Power aims to accelerate the roll-out of its larger facilities across the UK by 2035 in line with one of National Grid’s target scenario forecasts of a 2 GW requirement from LAES, which would represent nearly 20% of the UK’s long duration energy storage needs. By capturing and storing excess renewable energy, which is now the cheapest form of electricity, storage can help keep energy costs from spiralling, and power Britain’s homes with 24/7 renewable clean energy.

I can see several wind farms, that are regularly curtailed would have a Highview Power battery installed at their onshore substation.

Receently, I wrote Grid Powers Up With One Of Europe’s Biggest Battery Storage Sites, which described how Ørsted are installing a 300 MW/600 MWh Battery Energy Storage Systems (BESS) at Swardeston substation, where Hornsea Three connects to the grid.

I would suspect that the purpose of the battery is to avoid turning off the wind farm.

Would a Highview Power battery be better value?

What’s In It For Rio Tinto?

I can understand, why most companies are investing, but Rio Tinto are  a mining company. My only thought is that they have a lot of redundant holes in the ground, that cost them a lot of money and by the use of Highview Power’s technology, they can be turned into productive assets.

Collateral Benefits

Highview Power’s news item, also has this paragraph.

Beyond contributing to the UK’s energy security by reducing the intermittency of renewables, Highview Power’s infrastructure programme will make a major contribution to the UK economy, requiring in excess of £9 billion investment in energy storage infrastructure over the next 10 years – with the potential to support over 6,000 jobs and generate billions of pounds in value add to the economy. It will also contribute materially to increasing utilisation of green energy generation, reducing energy bills for consumers and providing significantly improved energy stability and security.

If Highview Power can do that for the UK, what can it do for other countries?

No wonder companies of the quality of Centrica, Rio Tinto and Goldman Sachs are investing.

 

June 14, 2024 Posted by | Energy, Energy Storage | , , , , , , , , , , , | 6 Comments

Grid Powers Up With One Of Europe’s Biggest Battery Storage Sites

The title of this post, is the same as that of this article in The Times.

This is the sub-heading.

Orsted’s huge facility in Norfolk will store energy generated by its offshore wind farm

These three paragraphs give more details of the project.

The world’s largest developer of offshore wind farms is planning to build a vast battery storage facility near Norwich.

Orsted will install the energy storage system, which will be one of the largest in Europe, on the same site as the onshore converter station for its Hornsea 3 wind farm in Swardeston, Norfolk.

The project will store energy generated by Hornsea 3 when weather conditions are windy and when electricity supply exceeds demand so that it can be discharged later to help to balance the nation’s electricity grid.

Note.

  1. There is also a visualisation and a map.
  2. Tesla batteries will be used.
  3. The The battery will have an output of 300 MW, with a capacity of 600 MWh. So it is another two-hour BESS.
  4. It should be operational in 2026.
  5. The battery is on a 35-acre site.
  6. Cost is given as £8.5 billion, but that would appear to include the 2852 MW Hornsea 3 wind farm.

The BBC is reporting that local residents are worried about fire safety.

I have some thoughts of my own.

The Location Of The Swardeston Substation

This Google Map shows the location of the Swardeston substation, which will also host the Swardeston BESS.

Note.

  1. The East-West road is the A 47 Norwich by-pass.
  2. Norwich is to the North of the by-pass.
  3. Just to the left-centre of the map, the main A 140 road runs between Norwich and Ipswich, which has a junction with the A 47.
  4. The A 140 passes through the village of Dunston, which is to the East of the National Grid sibstation, which will host the connection to the Hornsea Three wind farm.

This second Google Map shows the A 140 in detail from the junction to the A 47 to the Swardeston substation.

Note.

  1. The Swardeston substation is on a substantial site.
  2. The Norwich to Tilbury transmission line will have its Northern end at Swardeston substation.
  3. Once the infrastructure is complete at Swardeston substation, Hornsea Three wind farm will be connected to the electricity infrastructure around London.

There would appear to be plenty of space at the site for all National Grid’s plans.

Capital Cost Compared To Big Nuclear

Hornsea Three is a 2852 MW wind farm, that will cost with the battery and a few extras £8.5 billion or around around £ 3 billion per gigawatt.

Hinckley Point C on the other hand will cost between £ 31-35 billion or £ 9.5-10.7 billion per gigawatt.

Conclusion

National Grid would appear to be using a BESS at Swardeston substation to improve the reliability and integrity of the Hornsea Three wind farm.

How many other big batteries will be placed, where large wind farms connect to the National Grid?

As an Electrical and Control Engineer, I certainly, believe that energy storage at major substations, is a proven way to improve the grid.

 

June 12, 2024 Posted by | Energy, Energy Storage | , , , , , , , , | 6 Comments

Recurrent Energy’s Middle Road Project Sold To Centrica

The title of this post, is the same as that pf this article on Solar Power Portal.

These are the first two paragraphs.

Recurrent Energy, a global solar and energy storage developer and a subsidiary of Canadian Solar, announced the sale of its 49.9 MWp Middle Road solar project in Harbury, Warwickshire, to Centrica Business Solutions. The subsidy-free project, slated for construction this summer, will commence operations in 2025.

The Middle Road project is just one piece of Recurrent Energy’s expanding UK pipeline, which boasts over 2.6 GWp of solar PV and 6.7 GWh of battery storage projects. This mirrors the broader trend of increased investment in UK solar. Indeed, Recurrent announced €1.3 billion of financing for EU and UK solar projects earlier this week.

This 49.9 MW solar project shows three ways to make money from a solar project.

The Developer

Recurrent Energy would appear to have developed the expertise to put together these solar farms and do all the legals and administration to connect them to the National Grid.

They obviously can show their financial backers, the cash flow, that the farms generates.

So if you’re good at building solar farms, I suspect you can develop a substantial pipeline of projects, each with their own case flow.

The Operator

Initially in the early days, Recurrent Energy will probably be the operator, so they can sort out any teething problems and build the financial profile of the site.

The Owner

But as at Middle Road, they may decide to cash in their investment.

Centrica have now taken over the ownership and they can operate the farm themselves or pay, Recurrent Energy a fee.

Note.

  1. Developer, operator and owner all have ways of making money from this solar farm.
  2. Developer and owner can use the solar farm, as an asset on which to raise money.
  3. Similar cash flows and inside probably apply to batteries and wind farms.

By buying, selling and updating the various assets, a financial operator, can use their assets to make money.

As Centrica are also an electricity supplier, they can probably suggest to developers, where a solar farm or battery-electric storage system is needed.

Are Centrica Developing A Pipeline Of Projects?

In Centrica Set For Solar Boost With Acquisition Of Two Projects In South-West England, I talked about how Centrica had acquired two projects in South-West England.

The Middle Road project is the third project that Centrica has purchased this year.

As a Control and Electrical Engineer, I know, that by careful management of the assets, Centrica can achieve the following.

  • Delivery of electricity to their customers at a competitive price.
  • If a battery is included in the local grid, higher supply reliability can be achieved.
  • Batteries also allow the local network to carry out other tasks, like frequency stabilisation.

The flexibility of the local network should allow other assets to be added.

 

May 31, 2024 Posted by | Energy, Energy Storage, Finance | , , , | 2 Comments

Teesworks Joins Forces With NatPower On 1GW UK BESS

The title of this post, is the same as that of this article on Solar Power Portal.

These are the first two paragraphs.

Teesworks, the UK’s largest industrial zone, has revealed plans for a 1GW battery energy storage system (BESS) in partnership with renewables developer NatPower.

The project will be constructed over 50 acres of the Long Acres section of the 4500-acre Teesworks site. Construction costs are expected to total around £1 billion. While the main plan for the BESS is focused on renewable energy storage, the company also noted that the system could also support electric vehicle (EV) charging in the future.

The article then lists several large BESS projects, that are under development.

It also suggests that investment in batteries is in a healthy state.

May 31, 2024 Posted by | Energy, Energy Storage | , , , | Leave a comment