Why location matters
When planning a renewable energy project, one key question arises: What makes a project region-specific? Understanding the unique regional dynamics is crucial for the success of any renewable energy initiative, particularly in the case of behind-the-meter solar installations and battery energy storage systems (BESS). Pete recently explored where in Europe the best place is to develop a Behind-the-Meter BESS and Solar Project in this blog. Let’s take a closer look at some critical factors to consider when developing a project in a new location:
1. Renewable Resource
The position of your project directly affects the solar irradiance and wind resource, which determines how much energy your renewable power system will generate. For example, a solar installation in London will produce less energy annually than one in Sydney due to differences in sunlight exposure. These geographic factors also impact decisions like the orientation and tilt angle of your solar panels to maximise energy output.
2. Supply Arrangements
For behind-the-meter projects, the electricity supply arrangements can vary by jurisdiction, and in competitive markets, by supplier. Do the supply arrangements include time-of-use costs and any export payments, and how easy or difficult is it to find a route to the wholesale energy market for your solar, wind, or battery storage systems?
3. Wholesale Markets
There are many types of wholesale markets that make up the electricity sector. Today we’ll look at three.
3.1 Wholesale Energy
Electricity markets vary dramatically across regions. In countries like Great Britain, Australia, the US, Japan, and much of Europe, developers can access competitive wholesale electricity markets. However, in some regions, such as South Africa, there is currently only one supplier (though this is expected to change soon). Knowing your purchasing options will help you determine how to optimise your energy costs.
3.2 Grid Ancillary Services
One of the key benefits of BESS installations is their ability to provide grid ancillary services, which can create additional revenue streams for your project. Historically, this used to be something reserved for large grid-scale front-of-meter projects. But these revenue streams are becoming increasingly available to behind-the-meter projects too.
3.3 Capacity Market
Some market areas include a capacity market or mechanism whereby the system operator procures generation capacity to meet peak demand requirements or to ensure that enough generation is available during stress events. Depending on where you are located in the world, and the eligibility systems you are planning, this can be a significant part of the value stack for your project.
4. Networks
Each country has its own unique distribution and transmission infrastructure, and the costs of maintaining these networks are passed on to both consumers and generators through network tariffs. These tariffs and the rules surrounding them can be complex, often including time-of-use and demand-based components that vary by region. Check out Pete’s Thinking Energy video on how Network Tariffs influence solar, storage and EV charging projects. The length of time it takes to secure a connection to the grid can also vary substantially by jurisdiction.
5. Government Subsidies & Incentives
What subsidies or government incentives are available to support your project? Depending on the country, you may have access to schemes like feed-in tariffs, where you are guaranteed a set price for each unit of energy produced. In some regions, a contract for difference (CFD), or other types of financial incentives are available, while other regions may offer no direct support at all. It’s important to explore available incentives in your target region to maximise your project’s financial potential.
6. Capital Costs (Capex)
The cost of essential technologies, like solar panels or battery cells, can vary widely depending on regional markets, taxes, and trade policies. While manufacturing is often concentrated in a few global hubs, the final costs to developers are region-specific. Solar capex, for example, is generally much lower in Australia than it is in Europe, and the costs differ even more greatly between European countries. Understanding local pricing and cost structures is critical to planning your project's budget effectively.
Managing all of these factors simultaneously can be challenging. Fortunately, Gridcog simplifies the process by enabling you to evaluate them together. In her latest Gridcog 101 video below, Laura demonstrates how she uses Gridcog to model a behind-the-meter battery energy storage system (BESS) and solar setup in Germany. For a deeper exploration of solar energy in Germany, be sure to check out her blog too.
领英推荐
Gridcog Unplugged - London
We’re delighted to be hosting our first ever social event in London next Thursday evening, 5pm - 9pm, 19th September. The function is being held at Fountain Tap in Shoreditch. We are really looking forward to catching up with many of our Gridcog clients on the night.
The evening will kick off with a Fireside Chat by our guest speakers, Charlotte Johnson (Kraken), Cat Newman (CFP Energy), and Philippe Queruau (Veolia) where we’ll be discussing all things flex. There will be food and refreshments available, including craft beer, cocktails and sushi.?
The Gridcog team will be your hosts for the night, including Genna, our Director UK & Europe, and Pete, our Chief Product Officer & Co-Founder who has flown in from Australia. But you will also meet our Energy Analysts, Ashok and Laura, as well as some very special guests from the Gridcog team.?
We have a very limited number of spots left, if you’re keen to join us please express your interest via this link.
Industry Insights
Ratcliffe-on-Soar Power Station, Britain’s last coal-fired power station based in Nottinghamshire will be closing at the end of this month. This marks the end of Great Britain's dependence on coal as a source of fuel, and is a significant milestone in decarbonising GB’s energy mix.
"Plans are underway to transform the site into a zero carbon technology and energy hub. The company managing the site announced last year that it intends to produce low carbon hydrogen there, with a goal of reaching 500MW in electrolysis capacity by the end of the decade."
Take a look at the graph below to see how things have changed in the last 15 years.
Product Corner: Automated Weather Model
Did you know we have a weather model that sits behind Gridcog? By simply moving your location pin, you get the solar irradiance and wind resource data for a Typical Meteorological Year (TMY) gathered by Solcast.?
That’s all for this week. If you’d like to see how Gridcog can model your energy projects, click here to book a call with our team.
Or, if you have any interesting project use-cases you’d like to see modelled in Gridcog, email our marketing magician [email protected] and we’ll spin it up!