(Alliance News) - Renewables Infrastructure Group Ltd on Thursday said it has bought the right to develop three battery storage units in the north of England.
The Guernsey-based renewable energy investor said that two of the projects are scheduled for grid connection and commencement of operations in 2024 and 2025. When built, they will total around 165 megawatts with a two-hour duration.
The third site, which has a capacity for around 85MW also with a two-hour duration, will be built later in line with its grid connection date, which is in 2029. The company added that it may be possible to bring this date forward.
Renewables said: "Flexible capacity projects diversify TRIG's portfolio as their revenues are expected to have a low correlation to the absolute level of wholesale power prices received by renewables generators.
"In order to provide greater revenue optionality, the battery storage is being configured as a two-hour energy storage system, which is at the longer end of most existing installations. This configuration expands the project revenue stack by extending the trading options available in the wholesale market, which is deeper than the ancillary services market."
It added that the sites, which have been developed by Aura Power Developments Ltd, each have land rights, planning permission and grid connection agreements secured.
Further, Renewables said that it has contracted Renewable Energy Systems as its operations manager and they will develop the projects through procuring equipment and construction.
Once the first two projects are built the investment will represent around 4% of Renewables' portfolio, based on value.
Richard Crawford, of InfraRed Capital Partners, the firm's investment manager, said: "Greater deployment of flexible capacity and renewable generation are crucial components in addressing energy security, decarbonisation and energy affordability. For TRIG, the addition of battery storage into an already diversified generation portfolio further reduces revenue variability, and draws on the deep expertise of InfraRed and RES of investing in and delivering development-stage projects."
Shares in Renewables Infrastructure were up 1.1% to 143.08 pence each in London on Thursday morning.
By Sophie Rose; sophierose@alliancenews.com
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Renewables Infrastructure Group (TRIG)