Friday 15 July 2022

Somerset Council boasts £2.8m renewable investment profits

Somerset Council boasts £2.8m renewable investment profits

South Somerset District Council has stated that its investment into two battery storage sites has generated £2.8 million in income, during the last financial year.

The sites on the outskirts of Taunton reportedly cost the council £43.5 million to build – and it is hopeful that the returns of last will show eventual profits in the coming decades.

National Grid pays for the energy drawn from the batteries every 45 days.

Phase two of the second site is expected to begin operations in a matter of days, providing a new revenue source for the region and more renewables to the grid.

The council has stated its hope that this ‘success story’ can persuade other local authorities to take similar strides.

Councillor John Clark said: “The gross return is currently 6.9% and the net return certainly on the property elements is on our 3% target.

“The returns on the battery storage projects are in the form of profit on the purchase and sale of electricity from and to the National Grid against a business plan projection and I'm pleased to note that this profit flow is greater than the profit flow that was projected in the business plan. Overall, it's a success story.”

Written by

Bruna Pinhoni

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