Could more battery storage sites follow?
A Somerset council is investing public money in a second battery storage energy facility – mere months after its first such investment finally got up and running.
South Somerset District Council invested £9.84M of taxpayers’ money into a battery storage energy facility on the outskirts of Taunton, which would generate around £1M a year for front-line services.
The council purchased the facility in 2018, but it was not until June 2020 that it was able to begin generating income after delays with the connections and testing.
The council has confirmed it has now invested in a second, “lower risk” facility outside of Somerset, which can begin generating revenue immediately.
A battery storage facility operates by storing power from the UK network during off-peak hours, and then selling it back to the National Grid at peak times for a profit.
The Taunton site was originally designed to handle 25MW of energy – enough power to light 35,000 homes across the country – and finally became active in June after testing concluded.
A further 5MW of capacity has since been added to the site at a cost of £2.5M, with testing expected to conclude shortly and this section due to be operational by October.
Councillor John Clark, the council’s portfolio holder for economy and income generation, said the new storage facility – located near Fareham in Hampshire – would not be subject to the same delays and setbacks as the Taunton site.
He told the council’s district executive committee on Thursday morning (September 3): “It’s lower risk, partly because we’ve done Taunton and we know what we’re doing, so we’ve got that experience behind us.
“All the permissions and grid connections are already in place on the Fareham site – it’s an extremely good investment.”
The council said it had reviewed its commercial investments in light of the coronavirus crisis, opting to invest more in renewable energy to drive forward its green agenda.
Councillor Sarah Dyke, portfolio holder for the environment, said: “As well as finding significant efficiency savings, we are committed to protecting front-line services and meeting our ambitions to improve life in South Somerset.
“To achieve that aim while we are being more commercial in our approach, we also take our role in caring for the environment seriously.
“We are committed to doing all we can to promote the efficient use of energy resources locally and UK-wide.”
The council will co-own the new facility with Opium Power Ltd, with SSE operating the local distribution network.
David Owen of Opium Power Ltd said: “The government has legislated for net carbon zero, and this by default requires a sustainably powered grid.
“Grid-scale battery storage is required to stabilise and manage renewable energy generation.
“This system will also be providing additional revenues that will help protect local services in the community.”
The council has not revealed the price it paid for the Fareham site, citing commercial sensitivity.
Claire Pestell, the council’s commercial services and income generation director, said the new facility would expect to be operational by 2022.
She said: “We are hoping to be on-site later this month. We’ve got an 18-month build project and then there’s a few months of testing – so we’re looking at 2022 for when it starts generating income.
“We’re looking to pay back the capital and the interest over a longer term, so there will be profits at an earlier stage.”