1st March 2016
Alder King pioneers new battery storage income opportunity for commercial landlords
Property consultancy Alder King has launched a new energy initiative offering commercial landlords a 25 year income stream in return for housing banks of industrial-scale batteries in existing or purpose-built new industrial buildings.
Working with energy developer Green Hedge, Alder King is seeking to secure sites of 0.25 acres or buildings of around 10,000 sq ft capable of housing battery storage facilities.
The batteries, producing around 10MW of power per site, will charge when the National Grid has surplus power and deliver the stored power back to the National Grid at times of peak demand.
Income to each project is direct from the electricity supply markets and is therefore not reliant on unstable Government incentive schemes such as the Feed-in Tariff.
Landlords are also offered substantial option premiums to cover the period required to secure grid connection and planning consent, followed by a 25 year index-linked income stream. Starting rents are up to £50,000 per year, depending on the cost and speed of grid connection available to each site.
Simon Smith, partner at Alder King said: “We are delighted to be working with Green Hedge on this exciting new concept which builds on our successful track record in providing property and planning advice on energy-related projects.
“We are anticipating strong interest from landlords keen to secure a long term, stable income stream from their land and buildings from a use which is very easy to accommodate alongside other tenant uses.
“We would welcome all discussions with commercial landowners about adding this new opportunity to their portfolio.”
Niels Kroninger, managing director of Green Hedge added: “Battery storage facilities represent the future of on-demand energy supply. They bring much needed stability to the energy supply market in a clean and sustainable manner, replacing previously ill-conceived schemes involving noisy, polluting diesel generation technologies.”
Alder King is also working with Green Hedge to acquire agricultural sites suitable for battery storage barns. The concept is similar but focused on rural locations, offering agricultural landowners the opportunity to diversify their income stream together with the option to purchase the building constructed to house the batteries at the end of the lease for £1.
Landowners interested in learning more can download the Alder King Guide for Commercial Landowners or obtain further information by contacting Simon Smith below.