Fraser Johnston, Commercial Asset Management lead at BayWa r.e. Operation Services UK, shares his thoughts and experience behind our work and what sets us apart in a thriving renewables industry.
Joining BayWa r.e. in 2019 has provided invaluable insights on dealing with change. Our team have consistently provided commercial asset management services at scale throughout some extremely challenging times. The lessons learned over these years have fostered a unique and enhanced approach, which we are eager to share.
There’s a broad range of expertise in our commercial asset management team; former auditors, chartered accountants and trainees work collaboratively together to deliver commercial success. My own career started in accounting and finance, gaining my chartered accounting qualifications, before moving into the renewable energy sector. Having such a versatile team enables us to provide our clients with a complete commercial asset management service under one roof.
To deliver a comprehensive service to clients we allocate one dedicated Asset Manager per client or per site, whose responsibilities cover everything end to end. The two major advantages we see here are:
We step in as soon as a site is operational to ensure a smooth transition to the operation phase and ensure asset optimisation from day one.
Sometimes these sites are built by BayWa r.e., often they are not, we regularly work closely with external developers and asset owners who want sound commercial management. Our role is always to get maximum returns for the client and secure compliance. We’re in contact multiple times daily with metrics, analytics and forecasts, fostering close communication with owners. If a site has external financing, we liaise there too, the same goes for external auditors and tax advisors.
The term ‘finance business partnership’; that’s a good way of describing our approach. Sticking with clients beyond the lifecycle of individual isolated services, that’s the foundation for everything else.
The size of our organisation is proving to be another point in our favour. We’re fortunate to have established a strong presence across the UK and Europe, without losing our reactivity. As markets have changed, we’ve been consistent yet adaptable.
Support of the wider global BayWa r.e. network is a huge strength. We’re currently working with companies in places like Luxembourg, Switzerland, and Germany who have business interest within the UK. Despite having an international reach, we keep that intimate relationship and market familiarity, we believe this is central to our growth.
A lot of what we’re doing has never been done within BayWa r.e before. We consult with our colleagues in other markets for synergies and collaboration opportunities, and often we’re the first to ask these questions or develop specific working practices.
Now, all this isn’t to say that our approach makes us immune from the challenges of managing renewable energy assets. The scope of market uncertainty is hard to overstate. From Brexit to Covid to interest rate and inflation worries, our clients have had a lot on their minds.
Some clients have reassessed their position within renewable energy, a few have exited the UK entirely. We can only guide them towards the right decision for their own circumstances. Our approach to asset management continues to focus on rapidly evolving landscapes.
There’s a lot to keep track of if we want to give the best possible advice. The end of last year saw the Electricity Generator Levy (EGL) come into force. Right now, there’s a lot of interest surrounding inheritance tax on farms, virtually all of our clients lease their land from farmers. We often sit in on working groups and are members of industry bodies to ensure we’re on top of the latest developments.
Another topic is the amount of ageing technology that’s about to come off the market. A number of first-generation wind and solar farms are due to be decommissioned, in some places it’s already started. Alongside our technical colleagues we are helping advise on life extension and repowering works involving enhancements such as battery storage, co-location or hybrid projects.
We’re gearing up for a big wave of repowering and repurposing sites, building on experience from past successes. Our recent Scurf Dyke project is a solid example of incorporating battery storage and solar.
Asset management for renewable energy in 2025 and beyond will be an exercise in curiosity and embracing change. Clients want more than the traditional Excel spreadsheet; they want the collaborative full-service experience. Our in-house data analytics team and finance systems offer integrated reporting, providing comprehensive financial reports and visual metrics. These services provide our asset owners with accurate, timely information for better decision making and optimisation of financial performance.
Delivering that at scale means exploring further adoption of new technologies like AI to drive greater efficiencies.
If you get it right, like I believe we have, the personal and professional rewards are huge. I get to work with talented people from all backgrounds, making important decisions that drive big-picture, positive change.