In an exclusive conversation with the CEO of Voltwise, Russell Alton, we discover the pressing challenges and exciting prospects in the energy storage industry across Europe.
Q1: What drew you to Voltwise and the energy storage sector in Europe?
Russell Alton:
Energy storage has a fascinating role to play in accelerating and de-risking Europe’s 2030 and 2035 renewable targets.
The UK and Germany spend billions every year telling wind turbines and solar assets to turn off - all so the electricity grid can remain at 50 hertz and avoid power outages[1],[2]. As more renewable assets come onto the system, driving increased volatility in electricity supply, this challenge will only worsen. The best solution is investment in energy storage; and the best class of these assets are grid scale batteries.
When an asset class is needed to deliver a political and regulatory ambition, you've got to think you can make a reasonable return on capital from that investment. A good return for all stakeholders - investors, landowners, developers, operators, and others in the ecosystem.
Voltwise's ambition is to become one of the European market leaders in developing, constructing, owning and operating battery storage assets; and our commitment and competitive positioning, especially our capability and access to capital, drew me to the role. We have a very exciting opportunity ahead.
Q2: What’s the biggest hurdle in the European energy storage industry right now?
Russell Alton:
As we add more intermittent renewable assets to energy systems across Europe, more energy storage assets are needed to maintain system stability. Ideally, we would want storage capacity to stay one step ahead of renewable / generation build out – in particular in our markets of focus, the UK and Germany.
Whilst net zero ambitions are generally pointing in the right direction, the energy system is complex and with many participants in the ecosystem. In many cases, battery storage assets have been identified as generators by regulators and transmission and distribution service companies, which has slowed the project development process.
The faster the approvals and grid connection process, the faster companies like Voltwise can construct and bring new storage assets onto energy systems and therefore the faster we can credibly deliver the transition to a net zero power.
Q3: If we look ten years ahead, what do you hope to have achieved?
Russell Alton:
I have two hopes for the next ten years.
My first hope is that the battery storage industry gets ahead of the wind and solar industries. I say this because if battery energy storage can get one step ahead of the renewable build out, it means Europe can stay one step ahead of managing the intermittency and grid issues that come with renewable assets, like wind and solar. This is the only way that Europe will meet its renewable targets in ten years’ time in a safe and cost-effective way.
My second hope is that Voltwise plays a fundamental role in the evolution of the battery energy storage industry across Europe. Voltwise already has the capital, ambition, and capability to make this happen. And we are focussed on making this happen.
Q4: Tell us more about Voltwise’s strategy. How do you differ from other Battery Energy Storage System (BESS) companies in Europe?
Russell Alton:
Within Voltwise, we have a highly commercially minded team with strong development, construction and optimisation credentials both across the energy sector and specifically in BESS assets. This means we are very well placed to develop, construct, own and operate BESS projects; and we have a strong capability to both develop and acquire either existing projects or those that are, or are close to, ready to build. We are also well funded by our owner, Sandbrook Capital.
We also pride ourselves on our data-driven intelligence that Voltwise brings to all of our activities. An example of this is how we develop in-depth full life revenue models for batteries in our core markets, allowing us a robust and distinct point of view on the revenue opportunity for developing or acquiring assets at individual locations in our target markets.
Q5: What exciting developments have you seen in battery technology recently?
Russell Alton:
Battery technology continues to evolve and improve. Modern batteries are smaller, more powerful, and much safer than their predecessors. What that means is that for a certain sized piece of land, I can now build a larger battery energy storage system than in the past. This should improve the robustness of projects, with lower risk especially given safety credentials, helping the whole battery ecosystem.
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