Co-location of energy could significantly cut the cost of expanding renewables
Co-location of energy could significantly cut the cost of expanding renewables
A new report from Cornwall Insight and national law firm Weightmans on the co-location of energy assets, entitled “Co-location, co-location, co-location”, has laid out the significant cost savings of using one grid connection for multiple renewable generation or storage assets.
The report outlines how co-location could incentivise the development of battery storage and the expansion of a variety of energy sources including solar and wind power, as well as low-carbon hydrogen production. It could also help to accommodate new energy needs such as an increase in electric vehicle charging.
Setting up a new site, especially for storage assets, is currently a long and often costly process, involving planning permission, leasing costs and establishing a grid connection. By co-locating a new renewable generation or storage asset behind an existing grid connection, developers will be able to both expedite and bring down the costs of developing the UK’s renewable generation capacity.
Savings can be made by reducing capital and operational costs through using existing infrastructure and land that would otherwise be under-utilised and by taking advantage of spare grid connection capacity. There is also the potential to co-locate the energy generation site with the demand site of a business, which could see savings by cutting the cost of importing the energy.
While cost savings are a primary gain of co-locating, an additional related benefit to adding a new asset to an existing one is quicker connection to the grid. With some storage assets facing a wait for a grid connection beyond 2030, co-location will speed up getting these online, which in a global energy supply crisis has never been more important.
Figure 1: Poll of energy experts on the main benefits of co-location1
What do you see as the main benefit from co-locating storage with a renewable generation asset?
"Through co-location of energy assets, we can utilise land that is already being used for renewables and storage, and use untapped grid capacity, cutting the cost and timeframe of expanding renewables."