Battery Storage FacilitiesA guide for Commercial Landlords

Who are Green Hedge?Green Hedge is a UK based leading developer and operator of low carbon electricity generation and storage projects.

Green Hedge have worked successfully with commercial and large industrial clients on renewable energy projects. The group’s developer arm has an established track record of successful project delivery in the UK and has developed over 200 MW of renewable energy projects to date, with a focus on large-scale grid connected and private wire solar PV systems.

Internationally, Green Hedge develops and operates low carbon electricity generation and storage projects for large electricity users, helping corporate and government clients reduce their energy costs and carbon footprint.

Further information available at www.green-hedge.com

Is planning permission required?In most cases, there will be a requirement to secure planning consent for the proposed energy generation use. However, because the process will take place within a building that appears to be a standard industrial unit or form a containerised solution, securing a planning consent is not expected to be contentious and may in some cases be a simple change of use application.

Is this linked to Feed-in-Tariffs or other Government incentives?Income to projects is derived directly from the electricity markets. There is no direct linkage to government devised tax payer funded incentive schemes. The regulatory environment is therefore much more stable than has historically been the case with Government incentive schemes such as the Feed-in-Tariff.

What will the cost to Landlords be?Green Hedge cover all costs in connection with progressing the Battery Storage facility, including a contribution toward Landlord’s professional costs.

Do I need to be concerned about Lithium Ion batteries?Green Hedge will employ fully tested and warranted technologies from established and trusted providers. In addition, Green Hedge will comprehensively insure all installations.

What should I do next?Alder King is fully retained by Green Hedge to acquire suitable sites on its behalf.

If you are interested in further investigating the potential of your commercial site please call Alder King using the contact details below. You will be asked to provide an address for the premises which will be used to undertake the initial feasibility study.

Simon Smith | Alder King T: 0117 317 1069 | M: 07990 891004 | E: ssmith@alderking.com

Further information is also available at http://green-hedge.com/EnergyBarn.html

What is the process for identifying suitable locations for Battery

Storage facilities?

Stage Timeframe

1. Confirm interest in initial, no obligation feasibility study to Alder King.

ASAP

2. Alder King/Green Hedge undertake initial feasibility study.

1 week

3. Landlords with sites with potential will be provided with a detailed information pack, including confirmation of Option Premium/Rental level bands, Draft Heads of Terms and Letter of Authority to apply for grid connection.

1 week

4. Landlord returns Letter of Authority to apply for grid connection.

ASAP

5. Grid connection offer received and shared with landlord, together with confirmation of option premium and rental payable.

6-8 weeks

6. Heads of Terms signed (non-legally binding).

1-2 weeks

7. 2 year option entered (legally binding). 2-4 weeks

8. Green Hedge submits planning or change of use application (where required).

2 year option period

9. Green Hedge triggers option to lease. Within option period

10. Green Hedge constructs building (where required).

Within 6 months of lease

11. Fit out and occupation. 25 year lease term

What is a battery storage facility? › Circa. 10,000 sq ft (929 sq m) industrial building, or containers,

housing batteries capable of supplying c. 10MW of power to the National Grid

› Battery storage uses industrial scale battery technology to provide power to the National Grid at times of peak demand

› Batteries are charged when there is a surplus of energy being generated, and then discharged quickly to meet sudden increases in demand

› The technology has existed for many years, but has only recently been developed and manufactured on a scale that makes this type of application commercially viable

What is a suitable site?Land: › Minimum 0.25 acres (0.1 Ha) suitable for construction of a

10,000 sq ft (929 sq m) industrial building OR land for a container based facility, comprising 11 shipping containers

› If a building is required, this will be constructed by Green Hedge, at their cost, to an agreed specification

› Proximity to electrical connection (33kV) or next to a substation › Existing planning consent for industrial or storage uses, OR good

potential to secure planning consent

Existing buildings: › Existing industrial buildings of 9,000–11,000 sq ft (836–1,021 sq m) › Minimum height to eaves of 5m › Detached or terraced › In good condition, with remaining design life of 25 yrs+ › Proximity to populated areas increases potential for cost

effective, high speed connection to National Grid › Existing planning consent for industrial or storage uses

What’s in it for you as the Landlord? › Single option premium of up to £10,000* › Starting rents of up to £50,000* per annum › Annual RPI linked rent reviews for duration of term › 25 year term, subject to tenant only break at 15 years › Secure income stream suitable for onward investment sale › Where a building is constructed, Landlord has option to purchase

the building for £1 at the end of the lease term* assumes 10,000 sq ft building or containerised solution on best

available terms

The value of sites/buildings is a function of the cost of connecting to the National Grid, and the speed at which power can be discharged in to the network. Further details are provided in the Landlords information pack, available on request.

Sites will be dealt with on an ‘open book’ basis, with the cost and speed of connection available shared with Landlords on receipt of an offer from the Distribution Network Operator (DNO). Landlords will not be obligated to proceed until a grid offer has been received and rental level and option premium has been confirmed.

Important Notice: This information does not constitute any offer or contract and although the content is believed to be correct, accuracy cannot be guaranteed and specifics are expressly excluded from any contract. Designed and produced by kubiakcreative.com 161963 02-16