Commercial battery storage for landowners in Scotland

Most adults (and some children) could competently draw and recognise a wind turbine or a solar panel. Over the last 20 years or so, this infrastructure has become a familiar landmark in parts of the countryside; playing a vital role in securing energy sovereignty and in the fight against climate change.

However, very few could draw a Battery Energy Storage System (“BESS”), which is an equally important, and relatively new, tool in this fight.

The Scottish renewable energy landscape

Scotland is uniquely located for renewable energy. With strong winds and tides from the Atlantic, abundant rainfall for hydro projects, and increasing solar potential, the country has an exceptional mix of natural resources. In 2024, for the first time, more that 100% of Scotland’s electricity demand was met by renewable energy, however, this poses a question – what happens with the excess energy?

Well, one option is storing that excess electricity in batteries, so that it can then be used at time when it is needed. This is not a new concept. Since the mid-1960s, the pumped hydro scheme at Ben Cruachan has been acting as a battery – when electricity is in excess, it ‘charges’ from the grid by pumping water up to its top loch, and when required, discharges this same water down into its hydro turbines to generate electricity.

How batteries support the energy grid

Batteries help to balance the grid and keep a constant flow of power, which in turn reduces the chances of disruptions and blackouts. Batteries also help to cover off gaps when renewables can’t generate at normal capacity (for example, days when the wind doesn’t blow).

Modern batteries tend to be made of lithium-ion, and so are larger versions of what you would find in your phone. The capacity of a BESS is measured in ‘watts’ (or ‘megawatts’, due to their size), and they discharge in ‘watt-hours’. A ‘watt’ is the maximum amount of power that a battery can generate at a moment in time. A watt-hour is a measurement of the quantity of power that can be discharged from the battery over a one-hour period.

So, for context, the government requires that by 2023, the UK needs batteries that can provide 10 billion watt-hours into the grid (or 10 Gigawatts hours). They then need this figure to double by 2035. At the moment, around peak time, the UK consumes around 46 Gigawatt hours of electricity. This figure is expected to increase with the increase in sale of electric cars, among other factors.

In Scotland, a typical BESS development may be designed to range from 100 Megawatt hours to 200 Megawatt hours provision (although we are currently acting some projects that will dwarf this size). Much will depend on individual site design, but a typical footprint for a 100MWh site may be around 5,000 sqm, or between 45-50% of an average football pitch. So quite a number of these projects will be required to meet these targets.

Types of BESS projects

BESS projects tend to be classified into two groups:

• ‘Co-located’ BESS will be installed in the vicinity of a renewables project, and deal with the energy generated from it.
• Standalone BESS will draw and discharge directly into the grid itself, separate from any development. Developers tend to look for land in the vicinity of these projects, or close to substation to allow them to connect into the grid.

What should you do as a landowner if you are approached

From a practical point of view, if you are approached by a battery developer, it is key to take professional advice at an early stage, from either your land agent or solicitor. We have seen a wide range of commercial terms being offered to landowners, some of which we would consider to be below market.

Key things to consider for landowners are how the battery will operate along with other operations, the impact of the construction process, and the on-going provision of services to the same. Despite some stories in the press, batteries are quite quiet, safe, and need very little upkeep once up and running, given they are operated remotely.

From a legal point of view, these transactions usually take place under an ‘Option and Lease’ model. A developer will take an option over your land. During this option period, they will investigate the suitability of your land for the project, as well as obtaining their planning and funding. Provided they are satisfied, they will then trigger the grant of a lease. Obviously, rents can be site specific but can range between £40k-£80k a year, Index Linked, for a period of 20-40 years.

Get in touch

If you are approached by a developer or have land that you think may be suitable for one of these developments, please do not hesitate to get in touch with Stuart Orr at stuart.orr@andersonstrathern.co.uk.

We have acted for both landowner and developers in a range of these projects, from microsites, up to some of the largest project in the country.

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