Will energy-storage technology advance the rollout of renewable energy in warehouses by helping to balance demand and supply? Dave Berridge, AMHSA Secretary, takes a look.
An interesting project is underway in Northamptonshire, which may have ramifications for the way new distribution centres are developed. Chelveston Renewable Energy & Innovation Park has partnered with Jaguar Land Rover to use second-life electric vehicle batteries from JLR’s I-PACE EVs to store energy generated from its on-site solar installations. The project – which involves the recycled batteries simply being slotted into on-site racks – will help realise the full potential of the renewable energy. The inconsistency of renewable energy production is a key reason why power networks still rely on fossil fuels: wind turbines need gusts of air and solar panels are unable to generate energy at night. So, this type of storage system for renewable energy will be critical in decarbonising the grid in the pursuit of net zero carbon.
Energy-storage projects such as this are of particular interest to the logistics industry. Research by UKWA last year found that the warehousing sector is in a unique position to generate solar power, given its vast amount of accessible roof space. UKWA’s report found there is enough roof space on the largest 20% of warehouses alone to double the UK’s solar generation capacity from 14 to 28 GW. Against a backdrop of painfully high electricity prices, renewable energy can reduce power costs significantly for warehouse occupiers, while also significantly reducing environmental impact. While UK warehouses have traditionally had relatively low electricity use, trends in the industry are changing this. Electrification of heating, the switch to electric transport fleets and the rise in warehouse automation are all adding to power needs, thus improving the economics of solar panel installation. Adding affordable local energy storage to this equation enhances the ROI even further.
The perfect storm of high energy prices, net zero targets and the drive for electrification means there is strong demand for reliable, low-cost and low-carbon power in the logistics industry. This will no doubt drive the development of solar power capacity and energy-storage solutions at both new DCs and existing facilities. And, with the continuing trend to automate intralogistics, maybe there is even the potential for system integrators to partner with developers in the supply of this energy infrastructure. Certainly, logistics automation suppliers may well be required to provide energy-rating information for their systems in the future, much like the energy ratings given to consumers by domestic appliance manufacturers.
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Dave Berridge
Secretary, AMHSA
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