SOUTH Somerset is building up reserves of a different kind by investing taxpayers’ money in renewable energy.

The district council is to fund the construction of a new battery storage energy facility, working with Yeovil-based firm Opium Power Limited.

The new facility will be able to store enough energy to power more than 30,000 homes, helping the National Grid to deal with demand at peak hours and preventing energy generated from renewable sources from going to waste.

The council expects the new facility to be operational by the end of the year, and claims that the minimum return on investment it can expect is 7.5 per cent.

The facility has been described as “one of the larger” battery storage sites in the UK, and there is the capacity to expand it should the demand be there.

The precise location of the new facility has not been disclosed for “site security reasons”, and its construction cost has not been made public.

The council has confirmed that it is within 75 metres of an existing major grid substation, that planning permission is in place to develop the site, and that approval has been granted for the site to be connected to the National Grid once operational.

Planning permission was granted to the Cricket St Thomas Estate in October 2017 to extend an existing commercial building on Goldenhaye Lane in Cricket St Thomas for “B8 use (battery storage)”.

But while that site would fit the criteria, being very close to a nearby solar farm, the council has confirmed that its facility will not be based at that location and that the plans are unrelated.

The new facility will be able to provide 25MW instantly to the National Grid for up to one hour – the equivalent to powering more than 30,000 homes.

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The batteries will store excess energy which is produced at low usage periods and would otherwise not be used.

This can then be supplied to homeowners and businesses at peak times, allowing the grid to take care of sudden spikes in demand for energy.

The batteries will be supplied by Dutch firm BYD Europe BV, which previously provided London with a fleet of electric buses, while Western Power Distribution will operate the local distribution network.

The council has described the move as a “first exciting step into ownership and development of renewable energy”, and says that the investment will allow it to “protect and improve core services” by providing a new source of revenue in the face of cuts from central government.

Council leader Ric Pallister said: “This project is just what we want our commercial strategy to deliver.

“Our team has worked incredibly hard to secure an exciting investment which will not only help the environment, but also provide invaluable revenue to help protect and strengthen vital services for our communities.”

The council has said that the minimum return on its investment – after repaying its loan and interest – will be 7.5 per cent, with the internal rate of return expected to be 14 per cent.

Councillor Henry Hobhouse, portfolio holder for property and income generation, added: “Here’s a superb example of where our commercial strategy can take us – working with key partners to invest in green technology that will be of lasting national benefit.

“As well as finding significant efficiency savings, we are committed to protecting front-line services and meeting our ambition to improve life in South Somerset.

“To achieve that aim we are being more commercial in our approach and making investments that will deliver valuable income. We also take our role in caring for the environment seriously.

“We are committed to doing all we can to promote the efficient use of energy resources.”