Battery storage systems: Why are they important to our energy infrastructure?

A combination of the UK’s increasingly unreliable climate and a fluctuation in energy prices has given rise to a need for Battery Energy Storage Facilities – or BESFs – in this country.

BESFs are systems that can store excess energy produced by renewables during periods of good weather conditions and low demand, which can then be released during periods of high demand to compensate for any shortfall in output.

While many landowners may think that their land is unsuitable for such schemes, a recent planning appeal, which has given the green light to the development of a BESF within the green belt, may give cause for hope.

In the appeal, the planning inspector found that the potential harm to the green belt, in particular the safeguarding of the countryside from encroachment, was outweighed by the scheme’s potential to contribute to the UK’s energy network. Though planning will be considered on a case-by-case basis, the centrality of BESFs to our network infrastructure is likely to give rise to more successful applications in the years ahead.

Developers of BESFs, like developers of other renewable energy infrastructure, will likely wish to take on a lease of land to operate their sites, whether in the green belt or elsewhere, rather than buy the freehold outright. Furthermore, due to the need to obtain planning and grid connections, developers will often first take out an option for lease, whereby they are able to call for a lease of a site upon grant of a successful planning permission.

Like all leases, key terms such as compensation, rent reviews, and termination will need to be considered. BESF leases also have unique considerations, as sometimes rent will be due to multiple landowners and often tied to output. Decommissioning of infrastructure need also be considered.

If you have any queries in relation to battery storage leases, please do not hesitate to get in touch.

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