Skelmersdale

The project has been progressed in conjunction with Tesla and deploys Tesla Megapack technology which is traded through their Autobidder platform.

Batteries provide investors with access to a burgeoning new asset class, with strong ESG credentials and broad scope for scaling up on electrical grids around the globe. The composition of the future mix of generating technology will impact the requirement for flexible technologies including battery energy storage systems. We see a sizeable storage market under all feasible scenarios of energy mix as without storage we will waste increasing amounts of energy.

Daily fluctuations in electricity demand are met by a variety of generating plants with different operating costs, leading to an established wholesale price curve. Batteries can capture this daily low/high price spread as well as the higher price spreads occurring minute by minute during the mismatch of demand and generation in real time. Grid balancing is the matching of supply and demand in real-time, provision of power quality services (eg: frequency response) and services ensuring security of supply. If we had sufficient energy storage capacity, balancing as we know it wouldn’t be required.

Battery Energy Storage is essential infrastructure for the electricity grid of the 21st Century, balancing supply from intermittent renewables and enabling Net Zero targets to be met.

Battery Energy Storage is rapidly becoming a key feature of modern electricity grids, providing security of supply through rapid and accurate balancing services provided to the grid operator. Additionally they are able to capitalise on price differentials across the various electricity exchanges, with these price differentials becoming ever more volatile as a growing proportion of electricity is provided by intermittent renewable generation from wind and solar. These fast-acting lithium batteries have now demonstrated they are able to provide a critical resource to grid operations at a price point that has pushed out incumbent technologies such as large scale coal and gas generation as well as smaller scale gas peaking engines, for the provision of ancillary services.

• Investment in critical infrastructure to enable the energy transition 
• Capitalise on and stack revenues across various markets 
• Merchant exposure opportunity with some contracted income steam (Capacity Market) 
• Long term warranty and residual life / asset longevity protections 
• Opportunity to capitalise on ever increasing volatility in climatic & assc grid conditions