TLT has advised Guinness Asset Management on its investment in one of the UK's first solar-plus-battery storage projects.
The battery project was developed and will be built and maintained by Nottingham-based EvoEnergy. The project will see a Tesla battery added to one of the UK's largest rooftop solar installations at the Telford distribution centre of office supplies company Lyreco, which was also developed by EvoEnergy and is owned by funds managed by Guinness Asset Management.
The 500kW/950kWh Tesla system will be connected to the 3.8MWp solar array, enabling Lyreco to reduce energy costs and increase the site’s energy efficiency.
Sapphire Energy, a company backed by Guinness Asset Management EIS Investors, will own the battery under the terms of a 15 year lease from Lyreco.
Malcolm King, investment manager at Guinness Asset Management, comments: "Energy storage is a significant growth area for our business and projects like the addition of a Tesla battery at this impressive site are particularly attractive to us. We are grateful for the expertise and advice of TLT and excited to be investing in the site over the next 15 years."
Maria Connolly, partner and head of real estate and energy and renewables at TLT, comments: "Combining storage with technologies such as wind or solar means that those renewable energy projects not only benefit from economies of scale through use of shared infrastructure and grid connections, but it also allows access to additional revenue streams. A solar-plus-storage project can provide power to a direct off-taker and also offer grid balancing services.
"We are witnessing a growing interest in these 'co-location' projects and we understand, given our extensive experience advising on energy storage, what investors should be looking for and how to proceed with investment negotiations and shape these deals."
The TLT team included Maria Connolly and legal director Stuart Urquhart.
The deal follows hot on the heels of TLT advising on the £20m investment by The Renewable Infrastructure Group (TRIG) in one of the first large-scale commercial power storage projects in the UK. In the same month, TLT completed an investment by Anesco in the UK's largest ever community energy deal.
In further demonstration of its leading role in the renewable energy market, TLT was ranked globally as one of the most active legal advisers in clean energy in March 2017.