Statkraft and RedT have agreed terms on a commercial partnership to deploy and fund solar PV and energy storage units at industrial and commercial sites.
The aim is to initially deploy up to 10MW of solar PV and 6MWh of energy storage, scaling up to 100MW over the next three years. They are looking for contract lengths of 25 years and said the solution will cut energy bills by around 20 per cent.
Statkraft recently announced its UK virtual power plant (VPP), which combines gas engines with solar PV and battery storage, had reached 1GW. The Norwegian state-owned company plans to double that capacity by summer.
“The partnership with redT enables Statkraft and [its subsidiary] Bryt Energy to offer additional options that will benefit customers, incorporating storage, renewable energy solutions, advanced asset optimisation and trading within a VPP,” said Andy Cooper, Head of UK Downstream for Statkraft. “We believe our funded solution really enables customers to take advantage of more zero-carbon renewable energy, matching it to when it is needed most.”
RedT CEO, Scott McGregor, said: “With this roll out of low cost solar coupled with heavy cycling, non-degrading flow machine technology, we are accelerating the deployment of ‘energy storage 2.0’, providing low risk infrastructure returns to commercial energy users, and creating an effective, low risk hedge against rising energy prices for the next 25 years.”
The news will be welcomed by RedT shareholders that had voiced concerns over its announcement of a fundraise earlier this month.
The company said it was embarking on a strategic review and making cuts as it seeks a minimum of £1.5m to cover operating costs.
Priced at a significant discount, the share issue and stock market announcement caused shares to dive.
News of the Statkraft deal has seen share prices increase 50 per cent in morning trading, though they remain well below their value prior to the fundraising announcement.
However, in the announcement the company flagged it still has hopes for a large project in Germany, and has a signed purchase agreement for 72 storage units for a large UK grid project.