Battery storage projects—property issues
Produced in partnership with James Shawe of Eversheds Sutherland
Battery storage projects—property issues

The following Energy guidance note Produced in partnership with James Shawe of Eversheds Sutherland provides comprehensive and up to date legal information covering:

  • Battery storage projects—property issues
  • Property considerations for standalone battery projects
  • Key terms of the new lease
  • Co-location where existing lease is in place
  • Access and cabling rights
  • Funding and other considerations
  • Local authority procurement considerations

This Practice Note focuses on a ‘single landowner’ development where a new lease is granted for a stand-alone facility or where there is an existing lease in place and the battery storage facility is to be co-located on a site where the developer already has a lease. Several factors relating to land rights will need to be considered early in the project decision making process which will be relevant for developers of prospective battery sites as well as for developers who are looking for new development opportunities at existing sites. The key issues are discussed below.

Property considerations for standalone battery projects

A patchwork of rights

Standalone battery storage developments typically involve a lease of the installation site with ancillary rights over the landowner’s retained land (the ‘Lease’). The Lease would usually be granted pursuant to an option agreement or conditional agreement for lease. Either of these routes would give the developer:

  1. the ability to delay taking a lease of the site until a time when relevant planning and permitting is in place, and

  2. greater security in investing resources in the planning and development process as they know that the battery site is secured without having to incur expenditure on rent during the pre-operational phase of the battery

Freehold acquisition of the installation site (likely pursuant to a conditional sale contract)