Proactive Investors - NextEnergy Solar Fund Ltd has published information for investors on the proposed expansion of its energy storage strategy, as it consults on potentially increasing its investment in the area.
The investment trust has proposed expanding the limit on its investment in in standalone energy storage systems from 10% to 25% of gross asset value at the time of investment.
Currently the company owns 91 solar assets in the UK, many of which have ancillary energy storage capacity, and two standalone small-scale battery projects, one 50MWh battery in Scotland where construction is almost complete, and a 250MWh battery in Norfolk that is poised to begin construction soon.
The 31-page full document on the company's website notes that expanding investment will “enable NESF to take advantage of existing energy storage opportunities in the UK via its relationship with EelPower, which will complement and diversify NESF’s existing large portfolio of solar assets”.
It goes into detail on how batteries generate revenue from multiple sources, the benefit by smoothing out volatility for the company and other benefits to the wider electricity grid, energy storage revenue streams, battery storage duration, the benefits of increased duration, ESG considerations and more.