March 26 (Renewables Now) - Norwegian utility Statkraft AS and UK energy storage firm redT energy Plc (LON:RED) have joined hands in a new partnership that will offer solar-plus-storage solutions for UK commercial and industrial clients (C&I).
The companies have signed heads of terms to partner on the project that will see them install solar panels with redT battery storage at no upfront cost, redT said on Monday. The move will mark the first time such a product, financed under a power purchase agreement (PPA), is offered on the UK market, according to the statement.
The companies will initially install 10 MWp of solar photovoltaic (PV) and 6 MWh of battery storage capacity, hoping to boost the size of the portfolio to 100 MWp and 60 MWh over the next three years. They will sell the generated electricity from the facilities under 25-year PPAs with Statkraft. The latter will also provide flexibility optimisation services using its in-house virtual power plant.
"With this roll out of low cost solar coupled with heavy cycling, flow machine technology, we hope to accelerate the deployment of energy storage providing low-risk energy savings to commercial energy users, and creating an effective, hedge against rising energy prices," said Neil O'Brien, executive chairman of redT.
Statkraft and redT estimate the C&I users opting for the new product will be able to get up to 20% of energy cost savings during the 25-year term of the PPA.