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ARTICLE · 24 JANUARY 2023

Co-location, Co-location, Co-location

Bracewell LLP
Bracewell LLP
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Bracewell LLP

Bracewell LLP

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The UK continues to push forward to achieve its net-zero targets. However, due to the increase of renewable energy developers and National Grid network constraints, the electricity generation...

United KingdomEnergy and Natural Resources
Ronen “Ro” Lazarovitch
Ronen “Ro” Lazarovitch
Nicholas Neuberger
Nicholas Neuberger
Sam Phillips
Sam Phillips

The UK continues to push forward to achieve its net-zero targets. However, due to the increase of renewable energy developers and National Grid network constraints, the electricity generation market is facing significant delays for new grid connections to come online. As a consequence of this and other factors (including inflated electricity prices and the need to balance intermittent generation), sponsors and operators are looking for ways to maximise the value of their existing connections and ensure new project development is future-proofed.

The co-location of a utility scale battery energy storage system (BESS) alongside a renewables project is one solution that is currently receiving much market interest. Below, we take a brief look at the current state of the co-location market and the corporate structuring solutions being adopted, as well as bankability considerations.

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