Shifting trends in UK battery energy storage

Battery Energy Storage Systems held a prominent place at this year's Solar & Storage Live 2024 conference, with the E&I sector team noting an increase in new entrants to the UK market.

The shift to multi-contract structures in co-located BESS projects: risks and implications for developers

The team has seen a steady increase in co-located assets (ground mounted solar PV and BESS assets). At the same time, the number of contractors who are willing to provide a single solution (whereby the solar PV and BESS assets are 'wrapped' under one contract, with the contractor taking sole responsibility) has dropped significantly. In most instances, the contracting matrix is a patchwork of work packages, with one contractor taking responsibility for the solar PV, another contractor procuring and installing the BESS and an ICP undertaking the necessary connection works.

From the contractor's perspective splitting the work packages reduces the contractor's risk exposure. Viewed from the perspective of the developer though, it does create challenges in securing the necessary funding (investors would prefer a simple, sole point of responsibility approach) and difficulties in contract management. We have alluded to some of these issues in this article.

Navigating new HSE Guidelines and EU producer responsibility changes

Added to this, the HSE has issued guidance aimed at organisations or persons that are involved in the lifecycle of a grid scale BESS, the implementation of which could have additional cost implications for project developers, owners and operators. For more details see our article.

Finally, anyone importing BESS in the UK or involved in the manufacturing of BESS ought to also take note of the proposed changes in the producer responsibility regime that have been introduced at EU level. We have provided an overview of this regime in our article.

If you would like more information about any of the topics highlighted above, please get in touch with our experts.