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Book a call with one of our energy market specialists to explore how we can connect you to revenue-generating opportunities in flexible energy markets.
0131 221 8100
info@flexitricity.com
Co-location refers to the situation where multiple renewable energy systems or storage assets share a single grid connection. This approach offers dynamic pairing between two or more systems, providing numerous benefits. With the right optimisation strategies, co-location can be a crucial element of the future energy landscape.
Curtailment Minimisation: A significant challenge for variable renewable energy systems, like solar farms, is curtailment – wasted energy that occurs due to grid constraints or overall excess supply. Co-location addresses this issue by storing excess energy during peak generation periods and releasing it later. This approach optimises energy use by reducing wasted energy.
Grid Constraint Circumvention: In regions where obtaining a grid connection is challenging or expensive, co-location offers a practical solution. In the UK, National Grid has indicated that some grid connections might not be available until after 2030, as reported by The Guardian and Modo. By using existing grid connections, co-located systems avoid the long wait and costs associated with new grid connections, accelerating project deployment and maximising grid capacity.
New Revenue Streams: Co-locating BESS opens up opportunities to participate in new energy markets, such as balancing and ancillary services, creating additional revenue streams.
Winter Revenue Supply: In the UK, solar generation significantly decreases during winter, leading to lower revenues from solar power. Integrating BESS can shift operations to an almost full-time trading model during these periods, increasing the overall utilisation of BESS and mimicking the performance of standalone BESS systems.
Co-located BESS technology is particularly effective when combined with Renewable assets, as it addresses the intermittency issue and for the better use of the grid connection. It is important to note that BESS should not be sized solely for curtailment scenarios of the renewable asset, as these are infrequent events. Additionally, BESS should not be sized purely to handle spillover from the renewable asset that cannot be pushed into the grid, as this limits the operating capacity of the BESS and can undermine its financial viability. Ideally, both assets should be designed to ensure that each asset is financially viable on its own.