Gresham House Energy Storage Sets GBP80 Million Fundraise
Gresham House Energy Storage Fund must be doing something right, as similar headlines are used in half-a-dozen places on the Internet and they regularly seem to be raising more money.
But then, as a Graduate Control Engineer and a previous owner of half a finance company, I’ve always thought raising money to build batteries was a good idea.
My only niggle with Gresham House, is that I would have thought by now, they would have put some money into building one of the excellent new technology batteries that are coming through.
The storage fund or some of its employees, may of course have contributed to some of the crowdfunding for these new technologies, all of which I feel have a good chance of being a success.
Note.
- Energy Dome is Italian and all the others are at least fifty percent British.
- Most of the British batteries have had backing from the UK government.
- All these batteries are environmentally-friendly.
- None of these batteries use large quantities of rare and expensive materials.
- Energy Dome even uses carbon dioxide as the energy storage medium.
In addition, in Scotland, there is traditional pumped storage hydro-electricity.
Project Iliad
This article on renews.biz has a slightly different headline of Gresham House To Raise £80m For US Battery Buildout.
This is the first two paragraphs.
Gresham House Energy Storage Fund is seeking to raise £80m through a share placing.
The new equity raised will primarily be used to finance 160MW of solar with co-located four-hour battery projects in California, US, known as Project Iliad.
The article then gives a lot of financial details of Project Iliad and Gresham House.
Will Gresham House be backing co-located solar/battery projects in the UK?
- In Cleve Hill Solar Park, I write about a co-located solar/battery project in Kent.
- This press release from National Grid is entitled UK’s First Transmission-Connected Solar Farm Goes Live, which also describes a co-located solar/battery project, being built near Bristol.
These two projects are certainly serious and could be pathfinders for a whole host of co-located solar/battery projects.
WillGresham House back some of this new generation?
Quinbrook Breaks Ground On ‘Largest’ Solar And Storage Project In The UK
The title of this post, is the same as that of this article on Energy Storage News.
These three paragraphs outline the project.
Quinbrook Infrastructure Partners has started construction on Cleve Hill Solar Park, the largest solar and energy storage project in the UK, it claimed.
The specialist global investment manager revealed the Kent-based project, which consists of 373MW of solar and “more than” 150MW of battery energy storage, is expected to be fully completed by the end of 2024.
Once complete, Cleve Hill Solar Park will consist of 880,000 solar panels and battery storage. It was granted development consent by the energy secretary in May 2020.
It is my view, as a Control Engineer, that all solar farms and wind farms should be paired with an appropriately-sized energy storage device.
If this project works out well, we should repeat it on other solar farms of a similar size.
2.2 GW Of Solar Farms To Be Installed In The UK
This document from the Department of Business, Industry and Industrial Strategy lists all the Contracts for Difference Allocation Round 4 results for the supply of zero-carbon electricity that were announced yesterday.
There were sixty-six solar power projects, that totalled up to 2.2 GW, which gives an average size of 33.3 MW.
- Many complain that we don’t have enough sun in this country, so surely solar farms totalling up to 2.2 GW is an astonishing figure.
- For a comparison, Hinckley Point C will supply 3.26 GW.
- In Cleve Hill Solar Park, I wrote about the largest, which will be a 350 MW solar farm with a 700 MWh battery.
- Sixty-one are in England, two are in Wales and surprisingly three are in Scotland, So being that far North isn’t as bad for solar power, as you might think.
- It looks like 251.38 MW are proposed to be installed in 2023/24 and 1958.03 MW in 2024/25.
The Wikipedia entry for Solar Power In The United Kingdom, gives these numbers.
UK solar PV installed capacity at the end of 2017 was 12.8 GW, representing a 3.4% share of total electricity generation. Provisionally, as of the end of January 2019 there was 13,123 MW installed UK solar capacity across 979,983 installations. This is an increase of 323 MW in slightly more than a year. A new record peak generation from photovoltaics was set at 9.68 GW on 20 April 2020.
How many people correctly predicted that the UK would be be generating so much energy from the sun?
How Many Of These Solar Farms Will Be Co-located With Batteries Or Wind Farms?
Consider.
- Cleve Hill Solar Park will be a 350 MW solar farm, that is co-located with a 700 MWh battery.
- Is it significant that the battery could supply 350 MW for two hours?
- It also connects to the grid at the same substation, that connect the London Array offshore wind farm.
- As substations are complicated and probably expensive bits of electrical gubbins, sharing a substation is probably a good idea to save costs.
I hope that companies like wind and solar farm developers, the National Grid and Network Rail talk a lot to each other, so that efficient infrastructure is developed.
Conclusion
Over the years 2023 to 2025, we should develop these solar farms at a rate of around 0.7 GW per year.
Can we sustain that rate in the future or will we run out of land?
Cleve Hill Solar Park
This document from the Department of Business, Industry and Industrial Strategy lists all the Contracts for Difference Allocation Round 4 results for the supply of zero-carbon electricity that were announced yesterday.
There were sixty-six solar power projects, that totalled up to 2.2 GW, which gives an average size of 33.3 MW.
I looked at the list and found the following.
- All contracts had the same strike price of £45.99 per MWh.
The largest solar farm with a contract is Cleve Hill Solar Park.
- ,Cleve Hill Solar Park received a contract for 112 MW.
- According to Wikipedia, the solar park will have a battery of 700 MWh.
- Will the battery enable the solar park to supply 112 MW on a twenty-four seven basis?
- According to Wikipedia, solar farms have a capacity factor of about 10 % in the UK.
- The Cleve Hill Solar Park will have a capacity of 350 MW.
- On a typical day, it will generate 350 * 24 *0.1 = 840 MWh
- The Contract for Difference mechanism means they get the strike price for each MWh of electricity up to the level in the contract, which is 112 MW.
- I suspect that for several months of the year, the solar park will be able to supply 112 MW to the grid.
- I do feel that overnight and on sunless winter days, the system will provide a lot less electricity.
- This page on the EMR web site explains Contract for Difference mechanism.
This extract from Wikipedia, describes, the solar park’s connection to the National Grid.
Across the marsh run the 400kV powerlines of the national grid. They are supported by eight 40m pylons. There is a large 150/400kV electricity substation at Cleve Hill, serving the London Array offshore wind farm that lies to the north beyond the mouth of the Thames Estuary. The output from the Solar Farm will use this substation to connect to the grid. Here, a battery array will placed, that will charge from the sunlight during the day and release the energy at night when it is needed.
I can build a table showing the earnings on a per day and per year basis, against average output.
- 20 MW – £22,076.20 per day – £8,057,448 per year
- 50 MW – £55,188 per day – £20,143,620 per year
- 70 MW – £77,263.20 per day – £28,201,068 per year
- 100 MW – £110,376 per day – £40,287,240 per year
- 112 MW – £123,621.12 per day – £45,121,708.80 per year
Note.
- I have assumed the year is 365 days.
- As a time-expired Control Engineer, I know that the battery can be optimised to supply the electricity, when it is needed and the price is highest.
- I wouldn’t be surprised to see co-operation between the London Array and Cleve Hill Solar Farm, as on a sunless but windy day, there may be scope to store excess wind energy in the battery for later release.
On this brief look, it appears that owning a solar farm, can be a nice little-earner.
Thoughts On The Battery
Consider.
- According to Wikipedia, the solar park will have a battery of 700 MWh.
- One of the largest lithium batteries in the UK is the one at Clay Tye in Essex, which is just under 200 MWh.
I suspect that lithium ion batteries will not be used.
Highview Power are building a 250 MWh battery in Manchester.
- This battery will be able to supply 50 MW.
- The batteries use liquid air as an energy storage medium.
- The company says the design can be extended up to a GWh by adding more tanks for the liquid air.
- The only fossil fuels used in Highview’s batteries is probably some lubricating oil.
I feel that a Highview battery or something similar would be an ideal solution at Cleve Hill Solar Farm.
I should be noted that the London Array is a 630 MW wind farm, so the London Array and Cleve Hill Solar Farm have a combined nameplate capacity of 980 MW.
I feel there is a case for a larger battery at the substation, to give the grid an almost-guaranteed GW all day.
It would be large than most if not all gas-fired power stations.
It could be used to balance the grid.
The controlling software would optimise the finances by buying and selling electricity at the right time.
The Anonymous Widower 