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Home/The Economics of Co-Location: Aurora’s Latest Outlook and a Deep-Dive into Co-Located Solar PV Projects with Battery Storage

The Economics of Co-Location: Aurora’s Latest Outlook and a Deep-Dive into Co-Located Solar PV Projects with Battery Storage

We are pleased to present Aurora’s new Strategic Insight Report, “The economics of co-location”.

This report presents a deep dive into the business model of co-locating solar PV assets with battery storage. The report also presents an overview of the latest policy announcements and their impact on the deployment and profitability of renewables assets. The potential impact of the reforms progressing in the Targeted Charging Review are of particular focus.
The report was first presented during an Aurora Group Meeting for Renewables subscribers in May 2019.
Key messages to emerge from the analysis are:

The report was first presented during an Aurora Group Meeting for Renewables subscribers in May 2019.

Key messages to emerge from the analysis are:

  • Changes proposed by the TCR are expected to impact assets throughout the whole merit-order; considered in isolation new build subsidy free assets could be pushed back by up to 5 years if the TCR is fully implemented
  • Price cannibalisation for onshore wind will increase to 19% in 2030 as offshore capacity becomes operational, offshore wind and solar PV reach 14% and 9% respectively
  • Co-locating new solar PV with battery storage provides several benefits including portfolio diversification, asset oversizing and cost savings of £21/kW of battery CAPEX
  • Co-locating storage with solar PV brings subsidy free entry ahead by 3 years and increases IRR by an average of 1.6pp

If you would like to understand more about our renewables subscription service please get in touch

For subscribers, to access the full report, please click on the button below

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