‘Support measures do not incentivise energy storage,’ says REA. Image: Getty. “Current energy support systems are centred around power generation. If you are a power generation company on these support mechanisms, why would you think about doing energy storage?” said Mark Sommerfield, director of policy at REA at the UK Solar Summit today (15 September). The current energy support mechanisms - such as the Contracts for Difference (CfD) scheme - are designed to support energy generation, and therefore do little to incentivise the retrofitting of battery storage and co-location, a major stumbling block for the market. “The support mechanisms are centrered around power generation, they are not rewarding your ability to store that generation for later,” said Sommerfield, but added that “Ofgem and the Government are both working to address the issues surrounding co-location of storage in the CfD.” The CfD scheme was also a topic of discussion, with Solar Media's head of market research Finlay Colville declaring on the first day the summit that NSIPs and CfD's have "changed everything." For the first time earlier this year, LCCC announced that it will be possible to include co-located storage within CfD contract, following feedback from the industry that it was holding back the development of co-located battery energy storage. But more measures must still be introduced to incentivise the development of battery energy storage, and specificaly the co-location of storage and energy generation. “2030 will require 30GW of low carbon flexible assets with 13GW needing to come from storage. By 2050 60GW of total flexible capacity will be required with 15GW coming from both DSR and storage,” Sommerfeld said. Battery energy storage technologies are recognised as a crucial component for the energy transition with the technology the perfect complement to variable energy sources. It also provides a means to supply captured renewable energy when the grid demand is high. “Co-location offers additionally revenue streams for existing generation from flexibility and balancing markets. Investment opportunities can also be found following low subsidy support,” said Sommerfield.

‘For the exact same project design in February, it would’ve been £2m cheaper’ says Bouygues. Image: Getty. “For one project, if it was the exact same scheme, supplier prices and everything, had we signed a deal in February 2022, just on the exchange rate alone, it would’ve been £2 million cheaper,” said Patrick Doyle, head of energy business development at Bouygues. This statistic showcases the startling rise in the cost of project development in the UK, amid surging inflation and a weak pound. Because of this, radical price hikes have occurred across the industry with a major impact on supply chains. There is a major opportunity to increase solar’s development amid the energy crisis, but the price to develop could present a stumbing block to these projects. To counteract this, Bouygues has optimised the designed of solar projects in order to achieve a levelised the cost of electricity to prevent these startling increases. This allows contractors to know exactly what they will be paying, Doyle said, speaking the the UK Solar Summit in London this week. “This increase in just 6 months is absolutely crazy,” Doyle said. But despite this, demand for the technology is high with investors clamoring to be part of the sector, due to its key role in net zero, the still relatively low cost of the technology, and its ability to boost domestic energy security amid the current crisis. “Solar is a brilliant, non-brainer technology at the moment for the transition to net zero emissions,” he added.

Foresight Solar Fund has 50 solar assets in the UK, as well as sites in Spain and Australia. Image: Andreas Gücklhorn (unsplash). Power prices are continuing to boost solar asset value, with Foresight Solar Fund reporting its net asset value (NAV) per share, EBITDA and consolidated revenues jumping over the first six months of 2022, but they are unsustainably high currently, the fund said. The company’sNAV increased from £660 million as of 31 December 2021,to £754.9 million as of 30 June 2022. As such, its NAV per share increased 14.4% from 108.2 pence to 123.8 pence. During the same period, its consolidated revenues grew 18% ahead of budget, and EBITDA grew 26% ahead of budget. This growth came predominantly from the continued high power prices seen in Britain, as the market remains particularly volatile due to high gas prices, driven by the Russian invasion of Ukraine and subsequent geopolitical tension. For example, baseload prices for November and December were being traded above £900/MWh during the first week of September on the back of Gazprom stopping flows of gas through its Nord Stream 1 pipeline. “The war in Ukraine has compounded upward pressure on European gas prices that had already started the year at elevated levels due to supply shortages. In the current environment it is difficult to judge when energy prices and inflation will peak, although present levels are unsustainably high and in need of downward correction,” Foresight Solar Fund’s chairman Alexander Ohlsson wrote in a statement alongside the updated financial results. “The Board is pleased with the operational performance of the portfolio during the first half of this year. Strong asset availability has allowed the Company to benefit from particularly high irradiation in the UK, resulting in generation significantly above budget.” Foresight Solar Funds’ UK portfolio – made up of 50 solar assets – performed 8.0% above base case, with irradiance 8.9% above budget. Globally, the company’s portfolio performed 2.8% above base case for H1 2022. The company has continued its active management of power price exposure, and has entered into new fixed priced agreements for UK assets for various periods of up to four years in advance. It noted that this has allowed Foresight to secure more stable and predictable incomes streams for the years ahead, underpinning its dividend cover. As a percentage of total expected revenues, the company’s fixed revenues are now at 82% in 2023, 80% in 2024 and 72% in 2025. Average fixed prices are at £106/MWh in 2022, £115/MWh in 2023, £96/MWh in 2024 and £87/MWh in 2025. “During the first six months of 2022, the Investment Manager focused on securing new fixed price energy sale agreements for periods up to four years ahead,” wrote Ohlsson. “A flexible approach to power price hedging has allowed the Company to secure strong forecast dividend cover for 2022 and provides greater certainty on future revenues for the coming years, underpinned by attractive ...

On Monday 18th July, SolarPower Europe’s Emerging Markets met with the Egyptian New and Renewable Energy Authority to present their .report on solar investment opportunities in the Middle East, and discuss the latest developments for solar in Egypt since the report’s launch last November. With COP27 taking place in Egypt later this year, this meeting provided a timely opportunity to discuss the country’s renewable energy ambitions.  Egypt’s Integrated Sustainable Energy Strategy (ISES) outlines new targets for the country including 55% renewables in the energy mix by 2035 and 61% by 2040. Among these renewable energy targets, Egypt will tap into its massive solar potential with the goal of reaching 45% solar PV capacity by 2040

IMAGE SOURCE,PA MEDIA Image caption, The project has been called Mallard Pass as the site is close to where Mallard broke the world speed record for a steam locomotive in 1938 A consultation on plans for the UK's biggest solar farm is due to end at midnight. The Mallard Pass Solar Farm would cover the equivalent of nearly 1,700 football pitches around the Lincolnshire and Rutland border, generating enough energy for thousands of homes. Opponents say the development would spoil wildlife and take away agricultural land. The application is due to be considered next spring. IMAGE SOURCE,BBC/ TONY ROE Image caption, Sue Holloway said she and other residents were "so concerned" about the scheme The total number of solar panels were reduced after the first round of consultation but the site would still be eight times bigger than the UK's current largest solar farm, measuring 4.2 miles (6.7km) from end to end. The solar panels would be 11 feet high, and could power 92,000 homes over the next 30 years. The application is being brought by Windel Energy and Canadian Solar, who say it would generate large amounts of clean energy. Windel Energy has previously told the BBC: "Mallard Pass will support the urgent need to decarbonise our electricity system, deliver reliable and sustainable low-cost energy, enhance the local environment and be a responsible neighbour."

Dr Harald Överholm is the founder and CEO of Alight, one of the EU’s leading corporate solar providers. He is also a former member of the International Energy Agency’s PVPS workgroup on solar business models. Here he gives us his take on why he thinks solar is the best renewable source of power we have at our disposal. It is clear that the energy transition is underway and moving at a positive trajectory. Our future will be driven forward by an almost 100 per cent mix of solar and wind energy coupled with battery storage - with rapid further electrification of transport and heating too. I can confidently say that this vision is perfectly feasible within the next decade. And what’s more, this future will have a very low CO2 footprint and usher in a new era of energy security and independence. One thing that is important to point out is that short-term compromises need to be accepted in order to achieve this long-term vision and endpoint.