The statistics show a consistent increase in on-site generation/storage over recent years and there is no indication that this trend will cease.
While in some jurisdictions a reduction in the net value in respect of network charges derived from on-site generation is being implemented, there has been increasing recognition of the value to large demand consumers of secure flexible energy consumption/demand reduction (at all scales) in an efficient electricity system. This is increasing routes to market for the provision of such services via relatively small scale on-site generation and storage.
With the rise of the net-zero agenda, the reduction in the availability of renewable subsidies for many new projects is not reducing the number of planned on-site projects. This appears to be a combined product of: (i) large-scale consumers remaining determined to “green” their energy procurement as part of the drive to net-zero; (ii) a reduction in cost of renewable technologies (and battery storage) meaning subsidy is less fundamental to the necessary income streams; and (iii) the availability on some projects of power purchase agreements with a strong corporate counterparty giving certainty on long term revenues.
Having said that, the increased prevalence of “corporate”, “virtual” or “sleeved” power purchase agreements, whereby electricity from a remotely located generation facility is acquired for a particular site or wider organisation, may represent a threat to private wire-based projects.
