With much of the media discussion on energy prices and energy security, the battery energy storage system market is becoming increasingly more important and with battery storage operators seeing revenues continuing to grow, these operators and developers remain eager to secure ever more land rights for battery storage sites across Scotland and Northern England.
The constantly evolving enhancement in battery technology and the hardware and software to operate sites has considerably increased the consistency and productivity of modern battery systems and we are now seeing the standard 50 Mega Watt output being achieved from smaller and smaller sites, which will continue as battery technology evolves.
This continued innovation has led to battery storage becoming a more an accessible option for energy companies, and a route for landowners to diversify.
Whilst battery storage provides a good revenue stream from a relatively small parcel of land (which can be low grade and unproductive land), Davidson and Robertson advise land / site owners to take a cautionary approach when being contacted direct by developers seeking immediate acceptance of exclusivity agreements, Heads of Terms and requests for District Network Operator Letters of Authority for Grid Connections.
The Battery Storage market remains very new and young, with lease terms and rents being proposed arbitrary between developers, sites and locations; each project requiring due diligence to avoid the pitfalls and problems in the immediate and possible long term to maximise what could be a substantial investment asset.
When considering an approach from a prospective battery storage developer, the landowner should be considering the land take and any possible implications for future development, the Mega Watt capacity of the development, the lease terms being offered including commissioning and decommissioning terms and planning timescales amongst others.
Davidson & Robertson are engaged in numerous smaller and large-scale projects throughout Scotland and North West England; with a renewables team dedicated to delivering successful outcomes for land / site owners.
For more information contact your local D&R team or Stuart Lobb on 0131 449 1154