Battery energy storage systems (also known as BESS) is a relatively new concept in the electricity industry. However, there are already a number of technology options and the market is developing fast. With renewable power generation gaining market share of the electricity production, with it too comes greater intermittency in power supply, stressing the national grid and creating greater uncertainty for energy supply companies.
BESS allow renewable power plant owners to get more out of their assets by storing energy and dissipating the same when required, not only relieving the pressure on energy supply companies through grid balancing, but also giving asset owners the opportunity to increase revenues through frequency response, i.e. selling electricity back to the grid during times of peak demand.
Energy storage solutions will eventually become a ubiquitous component of the electricity grid. But today it is still an unfamiliar area for the electricity industry, and many players lack in-house expertise.
What is NICL doing?
NICL both advises and invests in the development of BESS projects in the UK and the CEE region. Our preference is to support BESS projects co-located with renewable power plants as we feel this strikes the right balance between bankability and arbitrage opportunities.
We have relationships with strategic and institutional investors that are active in the sector and with whom we can either partner to finance and develop projects or with whom we can secure an exit.