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Energy Investment Sites Required

Due to increased market demand, Carter Jonas are actively seeking freehold sites of existing operational energy assets for retained investors. This includes solar, wind, battery and gas projects. To discuss your site, please contact Greg Hilton on 01223 368771 or email greg.hilton@carterjonas.co.uk.

BEIS announces consultation to relax planning regulations for Energy Storage projects


The department for Business, Energy and Industrial Strategy (BEIS) has published a consultation on proposals to exempt new energy storage from the Nationally Significant Infrastructure Projects (NSIP) regime in England and Wales. This means that the local planning authority would have the power to decide whether to grant consent to a project of any size; currently this is only the case for storage below 350MW. The plans are in response to various recommendations from the Committee on Climate Change (CCC) to help tackle the climate crisis. 

Western Power Distribution launches searchable EV charging capacity map

The map enables anyone looking to install electric vehicle charging infrastructure in the WPD area to check whether there is available grid capacity.  Grid constraints are a key consideration for those installing charge points, particularly rapid chargers. Please get in touch if you are a business or landowner interested in installing EV chargers within the Midlands, South Wares and the South West of England. 

The Capacity Market gets the all clear to resume following suspension

The UK’s Capacity Market mechanism has been cleared to restart by the European Commission. The mechanism had been suspended last year as investigations took place following a European court case brought by Tempus Energy. The first three auctions have been confirmed for early 2020 and payments to contract holders, and from suppliers, due to be processed in January 2020.

Industry News

Forward electricity prices slumped in October following the spikes witnessed the previous month. This was largely down to improved supply expectations for the winter period and beyond. A stronger pound helped pressure prices further, while rallying oil and carbon markets were unable to curb the fall. April 2020 annual price fell by £2/MWh while month-ahead November price fell by £5/MWh.

Short-term electricity prices were more volatile, driven by changeable wind generation levels and a choppy gas market. Gas prices were highly changeable in October, supported at times by unplanned Norwegian outages and colder forecasts, while pressured down at other times by healthy levels of LNG cargoes from Europe. As a result, day-ahead prices swung as high as £43/MWh and as low as £33.5/MWh.

Short term weather forecasts predict colder than average temperatures in the first couple of weeks of November but, further out, climate models suggest the winter could be milder than normal. This would help keep UK energy prices stable over a usually highly volatile period. 

 

  • The government has approved plans for Drax Power to install four new gas turbines, overturning a decision by the UK’s Planning Inspectorate. Drax plans to build the turbines to replace its existing two coal-fired units, ahead of the Government’s proposed coal phase-out in 2025. The Planning Inspectorate initially recommended refusal for the plans on the ground of climate impacts outweighing the benefits.
  • Tesco has unveiled a major green electricity project, including 187 onsite rooftop solar installs. The project will also include a ground-mounted solar farm and five onshore wind farms, as the company aims to produce 10% of its electricity onsite by 2030.
  • According to National Grid, UK wind power output in October reached a record high of 21.2% of market share, up from 18.3% in October last year. Coal’s share was at 1.3%, down from 3% in October last year. 

Research by Solar Media UK suggests that the number of large-scale ground-mount solar developments has grown dramatically in 2019, with 66 new developments identified between January and July, accounting for 1.8GW of capacity.

The total pipeline in the UK was at 5.2 GW as of July, according to the report. The graph below shows the clear upward trajectory in pipeline projects and the sharp increase in installs that took place prior to the Feed-in Tariff ending in March.

 

2019 Monthly New Solar Farms & Total Pipeline for UK

The solar developer market is now growing in strength in a post-subsidy market as the first sites are now being built out across the country. The falling costs of the panels and power rating improvements have been the key drivers in improving the economics and return-on-investment projections.

Investor confidence is very much on the rise which means the appetite for subsidy free large-scale solar is at its highest ever level with many now looking at the co-location of solar alongside battery storage to try and unlock additional revenue streams.

The Carter Jonas energy team are currently advising on the development of over 3GW large-scale solar schemes across over 60 sites nationwide and ranging from 14MW to 200MW in scale. If you are a landowner and would like to discuss the potential for large-scale solar on your land, please get in touch with the team today.

Electric Vehicle Charging Points – The installation of EV charging points is a great way to future proof your site as the market is set to soar over the next decade. Securing grid capacity early is key as this could restrict future deployment. Return on investment can be sought through the owning and operation of charging points, or the lease of a site to an operator for an EV charging service station. Download our brochure here.

Solar PV – Carter Jonas is actively site finding and advising clients on the development of over 60 sites that will enable the development of over 3GW of subsidy free solar schemes across the UK. For high energy users, self-development options are also still available beyond the closure the FIT scheme in March 2019.

Battery Storage – The market for behind-the-meter battery storage and Demand Side Response (DSR) is evolving quickly. The income streams are becoming more uncertain, but the possibility of tying in batteries with Solar PV is making the financial model more favourable, particularly for energy-intensive industries with an annual electricity spend of higher than £100,000.

Gas and Electricity Brokerage – Volatility in wholesale markets, combined with rising non-commodity charges, could force energy prices up 50% by 2020 compared to 2016 prices, according to recent figures. Carter Jonas can help manage these risks by working with businesses to produce an energy strategy and ensure they are not only getting the most competitive price through our brokerage service, but also taking advantage of other potential income streams. Find out more here.

Agency & Investment Opportunities Carter Jonas has advised on over £45m of energy agency transactions over the last 12 months. Whether you are seeking energy investment opportunities, have assets to sell, or would like advice on the marketability and potential valuation of sites or operational assets, our Energy Agency team would be delighted to assist. 

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@ Helen Melling
Helen Melling
Senior Energy Specialist
0113 426 9868 email me about Helen
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Helen is an Energy Specialist based in our Leeds office.

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