There have always been back-up systems to support the electricity grid in times of peak demand or when another generator has broken down.

The increase in renewable electricity generation connected to the UK electricity grid required more capacity to be available as there is greater variability of electricity supply.

For the grid to successfully operate it needs to remain in balance both in terms of voltage and frequency.

These generator sets can be fuelled with either diesel or gas and typically occupy between half an acre and 2 acres of land or are inside an industrial style building depending on the size and location of the installation and the availability of a grid connection.

Rents for these sites, which can be on industrial estates or other commercial land, can be attractive.

The Capacity Market scheme provides 15 years of financial support for these schemes. Whilst a number have been built with CM support changes during 2017 has resulted in fewer sites succeeding at the auction process in securing support.

These sites are also sometimes known as “strategic operating reserve” sites or “STOR”.

Our Energy Team can advise on Landlord and Tenant matters to let a site; advise on the valuation of the freehold should you have a rental income or help you sell the freehold as an investment.