Independent power producer Conrad Energy has appointed property consultancy Alder King to source new power generation sites in targeted regions across the UK capable of accommodating small flexible energy generation facilities. In return for hosting a facility, landowners can receive generous annual rents or competitive market values for often under-utilised locations.
The initiative aims to increase the sources of flexible energy available to the UK electricity grid system.
Each facility contains between two and five gas-powered reciprocating engines housed in modular steel units similar to shipping containers. The engines are quiet and efficient and run for just three to four hours a day.
The electricity produced is supplied to the National Grid to balance peaks and troughs in demand and unexpected shortfalls in supply. The engines’ ability to start generating electricity within five minutes is also highly valuable to the National Grid, bringing extra security and resilience during peak periods.
Conrad Energy wish to be operating 400MW of plant by 2021. It already has five projects under construction and a growing pipeline of strategically located sites ready for development. Using Alder King’s expertise in securing sites for energy operators, it is now looking to accelerate its pipeline.
Alder King is inviting interested landowners with sites of around 0.25 – 0.75 acres to register interest via http://www.alderking.com/sectors/energy. The site must be capable of housing a generation facility for a minimum of 25 years. In some circumstances, existing industrial buildings of 10-20,000 sq ft may be considered.
Conrad will cover the cost of progressing suitable projects, including the planning application and a contribution towards the landlord’s professional costs. The revenue from each project will depend on the size and power output of each facility and can be available within nine months of work starting.
Simon Smith, lead energy partner at Alder King, says the increasingly dynamic UK grid is presenting exciting opportunities for landowners looking to secure a predictable revenue stream from unutilised land.
“With increasing demands on our electricity grid system, independent producers like Conrad are able provide fast response, highly flexible additional electricity into the market. This in turn offers potential for long-term income opportunities for landowners. We’re now fully engaged in targeting prospective landowners to secure a pipeline of new sites for Conrad.”