Why co-location holds the key to energy storage
Co-location refers to the combination of battery storage and a form of intermittent energy generation, such as solar or wind. The two technologies
Solar and wind facilities use the energy stored in batteries to reduce power fluctuations and increase reliability to deliver on-demand power. Battery storage systems bank excess energy when demand is low and release it when demand is high, to ensure a steady supply of energy to millions of homes and businesses.
For solar and wind farm operators, the ability to store and control generation means greater security and efficiency. These systems also allow excess energy to be sold back to the grid during peak hours, generating additional revenue and stabilizing electricity prices.
Modern storage systems enable peak-generated energy to be stored and used during low-generation periods. In the long term, the goal is for these systems to become large enough to replace “peaker” plants, which currently provide energy during high demand hours, as a backup to ensure grid stability.
The intermittency of wind and solar generation means that high generation periods (such as sunny days or strong winds) must be offset by adequate storage to cover periods of low generation. Modern storage systems enable peak-generated energy to be stored and used during low-generation periods.
Without storage, the grid system may have to limit generators that only intermittently produce power, such as solar and wind, and instead favour less clean sources of energy. Not only is this less sustainable, but it is also expensive. Reports suggest that the National Grid spent as much as £215 million in 2022 to curtail wind generation 2.
This stability is crucial for expanding renewable energy and reducing reliance on fossil fuels. The global battery energy storage systems (BESS) market is expected to grow from $10 billion in 2020 to around $120 billion by 2030 (Source).

Co-location refers to the combination of battery storage and a form of intermittent energy generation, such as solar or wind. The two technologies
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