Energy Storage Co-location

Energy storage co-location means installing a battery or other storage system at the same site and grid connection point as a generation asset, most often a solar or wind plant. The co-located design allows the assets to share infrastructure such as land, transformers, substations, and interconnection rights.

Co-location is attractive because it can improve the commercial performance of a renewable project without requiring a separate connection process for the storage asset. The storage system can absorb otherwise curtailed energy, shift output to better-priced hours, and provide additional services through the same connection envelope.

Key Aspects of Energy Storage Co-location:

• Shared Grid Connection: The storage asset and generator typically operate behind the same point of interconnection. This can make more efficient use of granted access capacity and reduce new network-upgrade needs.
• Revenue Stacking Opportunity: A co-located battery may capture value from energy shifting, curtailment reduction, ancillary services, and capacity-related products. The economic case often depends on combining several of these revenue streams.
• Operational Coordination Requirement: The plant controller must manage charging, discharging, export limits, and market participation in a coordinated way. Without strong controls, co-location can create unnecessary losses or compliance issues.
• Different from Simple Proximity: Co-location is not just being nearby on the same site. The defining feature is the operational and electrical integration around a shared connection and infrastructure framework.
• Useful in Constrained Markets: Co-location is especially valuable where interconnection capacity is scarce, renewable curtailment is rising, or price volatility rewards time-shifting. It is a practical response to both network and market constraints.