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EMEX Energy Management Exhibition -
Public Sector Energy Storage Investment
Daire Casey – Business Development Manager (WSCC)
Tom Coates- Project Manager (WSCC)
22.11.18
Your Energy Sussex- subsidy-free
investment in renewable energy
Summary:
1. Background toWSCCYour Energy Sussex (YES) team development
2. Income generation from WSCC energy assets
3. Case Study- theWesthampnett site- site characteristics and options
considered for our first battery storage facility
1. Background
• TheYour Energy SussexTeam inWSCC
• Energy plan forWest Sussex- three key issues: security; affordability; and
environmental sustainability.
• Examples of projects delivered to date:
- Solar farm investment
- Commercial scale solar
- Domestic solar and gas projects to support social housing
- Public sector estate- LED and solar projects
2. Income Generation from Energy Assets
Core ambitions energy
management at the County
Council :
• Reduced exposure to
market risk
• Lower overall cost
• Optimised assets
• Energy Strategy
0.00
0.50
1.00
1.50
2.00
2.50
3.00
High
Mid-High
Mid
Low-Mid
Low
Historic profile
RPI
energy-hq.co.uk
Working in Partnership &
• The role of the supplier / PPA provider is crucial when
monetising DSR.Aggregators and suppliers must work
together to maximise the value of flexibility.
• Npower Business Solutions Energy HQ worked in partnership
with WSCC to support project development by:
• Business case development and due diligence
• Battery operational requirements and site setup to maximise
revenue
• Policy / industry risks in a 10 year time horizon and potential
impact on business case
• In-house aggregation services to deliver on business case
valuation
• Frequency response qualification and DSR valuation
• Development of bespoke battery import & PPA contracts
• Full integration between npower & Laser to create simple,
structured contracting solution (OJEU compliant)
Income streams from energy generating
assets
3.
3. Case Study- Westhampnett Closed Landfill
Site characteristics:
• Previously mixed-use closed landfill site.
• Closed in 1995 and now designated low-
grade brownfield site
• Site is 35 acres/ 14 hectares
• Replacement gas extraction scheme
planned for the site (25 years)
• Statutory obligations to retain the site
(owing to gas migration over 25 years)
• Consent to developing a long-term
solution to the site that matched other
obligations
• Minimal income derived from the site
Options considered for the site:
Key high-level options for the site:
• Conventional solar farm with FITs
• Solar farm with private-wire connection
• Solar farm with battery storage
Benefits of PV- storage site to WSCC:
• Subsidy free installation for the life of
the project
• Limitations to private-wire projects
• WSCC’s core energy requirements for
the 20+ years easily
Modelled
Summary of site design:
System size:
• 27,665 panel module array
• 7.44MW ballasted solar farm with 4.40Mw Rated power
SMA invertors and 4.06MwhTestVolt battery storage
capacity
• 7.5 Million KWh’s of renewable energy
• Reducing theWSCC annual CO2 emissions by
approximately 20%
• Accounting for 25% of the annualWSCC corporate energy
demand
Income will be generated from the site by the following
means:
• Electricity generated on-site will be ‘sleeved’/ repurchased by
WSCCs energy purchaser, protecting it from energy price
volatility.
• Battery storage will enableWSCC to effectively become a
small scale energy provider; receiving an income through
price arbitrage/ peak shaving) and also receiving an income
from response services such as EFR/ FFR.
Key learnings from project Inception through to delivery:
• Initial capital cost didn’t include battery storage
• Site was low-grade land , many sensitivities existed
• Considerable interest from boards of governance in the storage system :
Performance warranties, safety, longevity, operation and maintenance
• Due diligence work undertaken by a number of specialist consultancies on the
scheme
• Operating model for the scheme - more risk owing to OFGEM uncertainty and
lack of a guaranteed funding stream
• Operational risk was scrutinised at every level
Opportunity to WSCC:
• WSCC as developer of its own land (positive and negative)
• Access to low interest borrowing
• Approval to develop long-term energy schemes
• Significant energy consumption onWSCC buildings (£11.5 Million
per year~£250million over 25 years )
• Significant support by officers and elected members
Closed Landfill Site – Design Challenges
• No penetration or excavation of the cap allowed
Closed Landfill Site – Design Challenges
Thankyou
Tom Coates -Tom.coates@westsussex.gov.uk
Daire Casey- Daire.casey@westsussex.gov.uk

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Public Sector Energy Storage Investment

  • 1. EMEX Energy Management Exhibition - Public Sector Energy Storage Investment Daire Casey – Business Development Manager (WSCC) Tom Coates- Project Manager (WSCC) 22.11.18
  • 2. Your Energy Sussex- subsidy-free investment in renewable energy Summary: 1. Background toWSCCYour Energy Sussex (YES) team development 2. Income generation from WSCC energy assets 3. Case Study- theWesthampnett site- site characteristics and options considered for our first battery storage facility
  • 3. 1. Background • TheYour Energy SussexTeam inWSCC • Energy plan forWest Sussex- three key issues: security; affordability; and environmental sustainability. • Examples of projects delivered to date: - Solar farm investment - Commercial scale solar - Domestic solar and gas projects to support social housing - Public sector estate- LED and solar projects
  • 4. 2. Income Generation from Energy Assets Core ambitions energy management at the County Council : • Reduced exposure to market risk • Lower overall cost • Optimised assets • Energy Strategy 0.00 0.50 1.00 1.50 2.00 2.50 3.00 High Mid-High Mid Low-Mid Low Historic profile RPI
  • 5. energy-hq.co.uk Working in Partnership & • The role of the supplier / PPA provider is crucial when monetising DSR.Aggregators and suppliers must work together to maximise the value of flexibility. • Npower Business Solutions Energy HQ worked in partnership with WSCC to support project development by: • Business case development and due diligence • Battery operational requirements and site setup to maximise revenue • Policy / industry risks in a 10 year time horizon and potential impact on business case • In-house aggregation services to deliver on business case valuation • Frequency response qualification and DSR valuation • Development of bespoke battery import & PPA contracts • Full integration between npower & Laser to create simple, structured contracting solution (OJEU compliant)
  • 6. Income streams from energy generating assets
  • 7. 3. 3. Case Study- Westhampnett Closed Landfill Site characteristics: • Previously mixed-use closed landfill site. • Closed in 1995 and now designated low- grade brownfield site • Site is 35 acres/ 14 hectares • Replacement gas extraction scheme planned for the site (25 years) • Statutory obligations to retain the site (owing to gas migration over 25 years) • Consent to developing a long-term solution to the site that matched other obligations • Minimal income derived from the site
  • 8. Options considered for the site: Key high-level options for the site: • Conventional solar farm with FITs • Solar farm with private-wire connection • Solar farm with battery storage Benefits of PV- storage site to WSCC: • Subsidy free installation for the life of the project • Limitations to private-wire projects • WSCC’s core energy requirements for the 20+ years easily Modelled
  • 9. Summary of site design: System size: • 27,665 panel module array • 7.44MW ballasted solar farm with 4.40Mw Rated power SMA invertors and 4.06MwhTestVolt battery storage capacity • 7.5 Million KWh’s of renewable energy • Reducing theWSCC annual CO2 emissions by approximately 20% • Accounting for 25% of the annualWSCC corporate energy demand Income will be generated from the site by the following means: • Electricity generated on-site will be ‘sleeved’/ repurchased by WSCCs energy purchaser, protecting it from energy price volatility. • Battery storage will enableWSCC to effectively become a small scale energy provider; receiving an income through price arbitrage/ peak shaving) and also receiving an income from response services such as EFR/ FFR.
  • 10. Key learnings from project Inception through to delivery: • Initial capital cost didn’t include battery storage • Site was low-grade land , many sensitivities existed • Considerable interest from boards of governance in the storage system : Performance warranties, safety, longevity, operation and maintenance • Due diligence work undertaken by a number of specialist consultancies on the scheme • Operating model for the scheme - more risk owing to OFGEM uncertainty and lack of a guaranteed funding stream • Operational risk was scrutinised at every level
  • 11. Opportunity to WSCC: • WSCC as developer of its own land (positive and negative) • Access to low interest borrowing • Approval to develop long-term energy schemes • Significant energy consumption onWSCC buildings (£11.5 Million per year~£250million over 25 years ) • Significant support by officers and elected members
  • 12. Closed Landfill Site – Design Challenges • No penetration or excavation of the cap allowed
  • 13. Closed Landfill Site – Design Challenges
  • 14.
  • 15. Thankyou Tom Coates -Tom.coates@westsussex.gov.uk Daire Casey- Daire.casey@westsussex.gov.uk