Colocation involves integrating battery storage systems with existing energy generation setups, such as solar farms. This strategy is particularly advantageous for optimizing and maximizing the use of grid connections. By colocating storage systems, asset managers can better manage the energy produced, providing stability and efficiency in energy supply and potentially increasing revenue streams from these assets.

Specifically, the process involves either integrating the battery storage within the existing company that owns the solar project (solarco) or creating a separate entity (batteryco) for the battery storage. The choice between these structures can depend on various factors, including financing arrangements and the flexibility required for future operations.

The technical aspects of colocation include ensuring that the existing grid connection can handle the added capacity of the battery storage, which might require a technical review and possibly additional infrastructure like cabling or the usage of a PPC (s.a. SmartgridOne).