Co-located battery value benefit breakdown
2020 has seen a big boost in investment momentum behind batteries co-located with solar PV. The UK is at the forefront of this push, but it is spreading across other markets e.g. Italy & Spain. Co-location value benefits vary widely across the dozens of projects we have analysed. But there are some common value driver themes. The chart shows a UK case study for the incremental project IRR impact of a ‘co-located’ vs ‘standalone’, split across 5 key value drivers. Saved connection & network charges typically provide the largest value pickup. But sharing a connection for battery & PV comes with a cost – the lost wholesale (WS) & balancing (BM) revenue from curtailing battery optimisation opportunities. Sizing the battery & choosing the right site to balance these offsetting value drivers is key to a bankable project.
We will be back with our first post summer feature article on Mon 31st Aug.