WIND FARM INVESTMENT OPPORTUNITY

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The Carter Jonas Energy Team has recently brought to market the unique opportunity to acquire a leasehold interest in the 18MW Ovenden Moor wind farm site.
The site is currently owned by Yorkshire Water who’s Operational Land Manager Michael Poole said: “The sale of Ovenden Moor Wind Farm is aligned to our Land Strategy, which will allow us to put greater focus on the delivery of exceptional land for Yorkshire for many years to come.”

With a guide price of offers in excess of £4 million, the opportunity would generate an initial yield of over 6.5%. The headlease available covers a term of 50 years, allowing any prospective purchaser to opportunity to capture any repower or planning extension that may be available.

EMBEDDED GENERATORS URGED TO APPLY FOR NETWORK FUNDING

Generators connected to the electricity network are urged to claim thousands of pounds in funding towards mandatory hardware upgrades, aimed at boosting network resilience and encouraging a zero-carbon power grid.  Generators can apply for funding to make the necessary changes and comply with the latest Distribution Code regulations via the Accelerated Loss of Mains Change Programme (ALoMCP). The aim of the programme is to make sure generators can shut down safely when needed and applies to sites that were connected to the grid before February 2018.  Carter Jonas can assist with any questions about the ALoMCP and help generators access the funding.

2020 SAW SOLAR PV CAPACITY IN THE UK SOAR TO 545MW

The lack of government subsidies doesn’t seem to have slowed down growth in the Solar PV development sector in 2020.  The install of 545MW of new solar PV capacity represents over 25% year-on-year growth compared to 2019 when the Feed-in Tariff came to an end. Growth is expected to continue into this year in the commercial rooftop sector (typically >250kW) and the large-scale solar farm sector (typically >15MW). If you are a business owner or landowner and would like to discuss the potential for solar PV, please get in touch with the team.

NEW EV CHARGING INSTRUCTIONS FOR THE CARTER JONAS ENERGY TEAM

The team has secured two new instructions to provide strategic consultancy in relation to the development of EV charging infrastructure. They will be working with a property developer to build a strategy for the roll out of EV charging infrastructure for their property development pipeline. Input provided by Carter Jonas will include advice on choice of charger installer, charger capacity, capital and operating cost projections and grid connection requirements. The second instruction this month is on behalf of a City Council who is seeking advice on how to structure and define a lease for the provision of public bus charging infrastructure on its land. Greg Hilton, Partner in the Energy Team said, “these two exciting instructions build upon Carter Jonas’ increasing activity in the development of EV charging infrastructure, on behalf of both developers and landowners across the UK.”


GREEN HYDROGEN PRODUCTION AND ITS ROLE IN DECARBONISING SOME OF THE UK’S HEAVILY POLLUTING SECTORS

What is Green Hydrogen?
The production of hydrogen from electrolysis utilises the method of using electricity to split water into hydrogen and oxygen using a device called an electrolyser. The electricity used in this process will either be produced from renewable sources such as wind farms and solar farms, or non-renewable sources such as burning natural gas or coal.

Green hydrogen is produced with the electrolysis method using electricity only from renewable sources.

READ MORE >>

THE UK ENERGY MARKET

Day-ahead contracts jumped to £148.67/MWh on January 5th as the temporary unavailability of the BritNed interconnector caused supply concerns along with low renewable output. Prices fell briefly following bearish movement in the gas market; however, this was short lived as cold weather forecasts and the resulting tight supply margins saw day-ahead contracts hit £198.17/MWh in the middle of the month. Prices quickly corrected downwards from this peak and remained relatively stable for the remainder of the month as can be seen in the graph. The start of February has seen short term prices torn between below normal temperature forecasts providing support and news of LNG supply deliveries to North West Europe which has eased supply concerns to the UK.

January began with a slight dip in power prices across curve, driven by bearish movement in the gas market. A rise in prices moving into mid-month was evident across further-term contracts, with Winter ’21 seeing the most noticeable increase, hitting £60.63/MWh by January 12th, bolstered by forecasted cold temperatures, concerns over European LNG supply and a rising carbon market. After a short period of decline, prices showed some recovery towards the end of the month following further strong gains in the carbon market, boosted by President Biden’s decision to re-join the Paris Climate Change Agreement. However, warmer temperature forecasts and reduced supply concerns at the end of January and into the start of February softened prices.

Colder temperature forecasts over the next week means we could see an increase in prices, however, ongoing Covid risks and lockdowns affecting demand levels could continue to limit any sustained price rises in the near future.

Any businesses interested in advice on how current markets will impact their energy contract and/or Power Purchase Agreement (PPA) should get in touch with Helen Melling, Senior Energy Specialist at Carter Jonas on 07467 335587 or helen.melling@carterjonas.co.uk.

In other news

The new high-voltage subsea interconnector is now operating at full capacity. The 1GW IFA2 link, which is the UK’s second with France, can import enough electricity to power a million British homes, according to National Grid.
This marks a significant step towards electric cars becoming as fast to charge as filling up petrol or diesel vehicles. The company, StoreDot, is aiming to deliver 100 miles of charge to a car battery in five minutes by 2025.
Ofgem has growing concerns that there is a potential conflict of interest by National Grid as the owner of the energy networks. Alistair Cromwell, the acting chief executive of Citizens Advice, said a separate body to run the electricity and gas systems “should give consumers more confidence that the advice given, and decisions taken, will be in their interests.”
This was previously abandoned by the US under Donald Trump’s presidency back in 2017. The move will re-enter the US into the nonbinding global agreement to reduce carbon emissions.
TALK TO US ABOUT

Energy Valuations - Carter Jonas has valued £175m of energy and utility assets over the last 12 months. The team provides professional valuation and due diligence advice to clients such as developers, banks, private asset owners and operators of assets including solar farms, wind turbine, AD plants and battery storage sites.

Electric Vehicle Charging Points – The installation of EV charging points is a great way to futureproof 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. Find out more here.

Solar PV – Carter Jonas is actively site finding and advising clients on the development of over 64 sites that will enable the development of circa 3.8GW 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 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 by 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 £75m 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 a Senior Energy Specialist based in our Leeds office.

I can provide advice on:

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