The Energy Storage Report 2024

Now available to download, covering deployments, technology, policy and finance in the energy storage market

DIF and Pexapark secure combined solar and storage PPA in UK

By George Hynes, Cameron Murray
LinkedIn
Twitter
Reddit
Facebook
Email

Investor DIF and renewable energy optimiser Pexapark have announced what they claim is the UK’s ‘first bankable and unsubsidised co-located PPA’, for a solar and storage project.

The hybrid power purchase agreement (PPA) supported by Pexapark covers a 55MW solar farm with 40MW/80MWh of battery energy storage capacity co-located. This site will be located in Leighton Buzzard, Bedfordshire, and will cover a 10-year term.

This article requires Premium SubscriptionBasic (FREE) Subscription

Enjoy 12 months of exclusive analysis

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Annual digital subscription to the PV Tech Power journal
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

In a statement made by the business, it confirmed that “the market-first hybrid PPA will also provide secure and bankable revenue streams for both the solar farm and storage system”.

This agreement also represents a key aspect of the market within the UK. In order to optimise and increase revenue output of many solar farms, companies are looking to co-location of energy storage. This also helps to boost the flexibility of their assets in the post-subsidy market.

Showcasing this rising popularity, Pexapark highlighted that “45% of all solar planning permissions submitted in the UK in the past two years have been for hybrid systems encompassing storage”.

By providing secure and bankable revenue streams, the DIF hybrid PPA provides a model for the wider market to follow in order to reach scale amid the broader energy transition across GB and the EU, a statement read.

Brian Knowles, director of storage and flexibility at Pexapark, said: “We’d like to congratulate DIF on this pioneering PPA, which marks the first of its kind in the UK and Europe more widely.

“The innovative nature of this agreement reflects our commitment to finding new PPA solutions for unsubsidised renewable energy developers and offtakers, with contracted revenues that offer attractive returns and low risk profiles for investors.”

See the original version of this article on Solar Power Portal.

Challenges as well as opportunities to co-location

Co-locating renewable generation with energy storage presents opportunities but also challenges, particularly around offtake agreements, according to a developer speaking anonymously at-length on the topic to Energy-Storage.news last year, discussing the UK market.

Alongside potential issues around grid connection and structuring the project’s special purpose vehicles (SPVs), optimising the offtake of a hybrid project is complicated, they said. In the case of a shared grid connection, it can mean the traditional utility world of long-term PPAs for renewables rubbing up against the algorithm-based new wave of BESS optimisers.

Our source described the combination of both sides – which seems to be being offered here by Pexapark – as “somewhat rare in the UK market” and that another option would be to have two parties responsible for each portion of the project.

12 November 2024
San Diego, USA
As we see more storage projects become operational, the big question is “how to maximize your assets?” This event will prepare the industry for the road ahead, looking at the core fundamentals of asset management, understanding operational challenges, along with the latest optimization and software development. You can expect to meet and network with all the key industry players from major US asset owners, operators, RTOs and ISOs, optimizers, software and analytics providers, technical consultancies, O&M technology providers and more.

Read Next

June 21, 2024
Rankings by EY of the most attractive markets for renewable energy investment include battery storage, with US, China and UK as frontrunners.
June 20, 2024
Recurrent Energy has closed US$513 million financing on a battery storage project in Arizona, US, which has a 20-year utility tolling agreement in place.
Premium
June 20, 2024
NV Energy is seeking approval from the Public Utilities Commission of Nevada of its 2024 IRP which it submitted on 31 May 2024.
June 20, 2024
NHOA Energy signed an agreement with Statkraft to supply a battery energy storage systems (BESS) for a 113MWh project in Coylton, Scotland.
June 19, 2024
A 25MW/55MWh battery energy storage system (BESS) has been commissioned by operator Renalfa IPP, using technology provided by Chinese firms Hithium and Kehua.

Most Popular

Email Newsletter