Energy use is the starting point
The first question is how the site actually uses electricity.
Annual electricity consumption provides a broad indication of scale, but it does not explain when electricity is being consumed. That distinction matters.
Commercial and industrial facilities can have very different operating patterns.
A cold-storage facility may run continuously. A warehouse may have concentrated daytime demand. A manufacturing plant may operate in shifts. A water facility may have pumping loads that vary considerably throughout the day.
Understanding those patterns helps determine whether battery infrastructure may have a useful role.
The aim is not simply to identify sites that consume a lot of electricity. It is to understand whether there is a meaningful relationship between the site's energy profile and the way a battery could operate.
The connection matters
A battery must operate within the electrical limits of the site and the surrounding network.
An existing grid connection can be an important advantage, but it does not automatically mean additional equipment can be connected without further work.
A project may need to consider factors such as:
- existing electrical infrastructure;
- import and export capability;
- transformer and switchboard arrangements;
- protection systems;
- metering;
- local network requirements; and
- any upgrades required to support the proposed asset.
These factors can materially affect project complexity. For this reason, connection assessment is an important part of determining whether a site can support battery infrastructure.
Physical space is more than footprint
Battery infrastructure requires appropriate space. But a suitable location needs more than enough room for the equipment itself.
The site also needs to support safe installation, operation and maintenance.
Practical considerations can include:
- vehicle and equipment access;
- separation from buildings and other activities;
- electrical cable routes;
- maintenance access;
- drainage and site conditions;
- interaction with existing traffic movements; and
- emergency access.
A site may appear to have substantial unused land but still present practical constraints. Conversely, some compact industrial sites may be able to accommodate infrastructure effectively where the layout and electrical configuration are suitable.
The facility still comes first
Battery infrastructure is being integrated into an existing operating business. The project therefore needs to work around the facility rather than the other way around.
Different industries create different constraints.
A logistics facility may need to preserve truck movements. A food-processing facility may have strict production schedules. A data centre may prioritise reliability and security. A cold-storage facility may have critical refrigeration loads that cannot be disrupted.
The right project design needs to respect the operating requirements of the host facility.
Long-term alignment matters
Energy infrastructure is intended to operate over many years. The relationship between the site and the asset therefore needs to support that timeframe.
Questions around site access, property arrangements, equipment ownership and ongoing responsibilities become important as a project progresses.
A technically attractive site may not ultimately support a viable project if there is insufficient long-term certainty around its use. For this reason, site suitability is both a technical and commercial question.
There is no single ideal site
It is tempting to look for one simple metric that identifies a strong battery opportunity. In practice, the best projects tend to emerge where several conditions align.
A suitable commercial or industrial site will generally have some combination of:
- meaningful electricity demand;
- a workable electrical connection;
- suitable physical space;
- operating conditions compatible with the infrastructure; and
- a long-term basis for the asset to remain at the site.
The relative importance of each factor varies from project to project. That is why early assessment matters.
The objective is not to determine the final project immediately. It is to establish whether there is enough underlying potential to justify progressing the opportunity further.
DERCO's perspective
Battery infrastructure should be designed around the site, not imposed upon it.
The strongest projects are those where the energy profile, electrical infrastructure, physical environment and commercial arrangements can support one another over the long term.