Co-locating solar and storage projects offers several cost-sharing benefits:
- Shared Infrastructure: By co-locating solar and battery energy storage systems (BESS), developers can share infrastructure such as land and grid connections. This results in significant cost savings compared to developing separate sites for solar and storage, which would require duplicate infrastructure and connections.
- Reduced Capital and Operational Costs: Co-location allows solar and storage projects to utilize existing infrastructure, reducing the need for new land leases, planning permissions, and grid connections. This approach also helps optimize the use of available grid capacity, thereby lowering both capital and operational costs.
- Simplified Development Process: Co-location streamlines the development process by avoiding the need for separate planning and permitting efforts for each technology. This can speed up project timelines and reduce bureaucratic costs.
- Increased Efficiency: By storing excess solar energy that would otherwise be curtailed (such as “clipped energy” when solar output exceeds inverter capacity), co-location improves overall system efficiency. This can lead to higher revenue returns per unit of installed capacity.
- Enhanced Flexibility in PPAs: Co-located solar and storage projects can offer more stable and reliable energy supply, enabling the creation of hybrid Power Purchase Agreements (PPAs). These agreements can include provisions for firm capacity and time-shifted delivery, providing greater revenue certainty and flexibility.
In summary, co-locating solar and storage projects offers substantial economic benefits through cost-sharing, increased efficiency, and improved project economics.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-are-the-cost-sharing-benefits-of-co-locating-solar-and-storage-projects/
