Transmission

The introduction of balancing settlement code modification P415 aims to open up wholesale markets to all types of flexibility, decreasing barriers to entry for independent aggregators by allowing participation beyond a consumer’s licensed electricity supplier.

Energy consumers that can be flexible with usage, do not currently see any value from their actions, except through their licensed electricity supplier, who not offer demand response services. The introduction of P415 will enable flexible consumers to appoint an independent aggregator, allowing participants of demand side response to enter into the wholesale energy markets and incentivize increased consumer participation.

In today’s episode, Paul Troughton - Senior Director of Regulatory Affairs at Enel X joins Ed to discuss the code change that he put forward. Over the conversation, they discuss:

• Introduction to P415 and the roles of independent aggregators and virtual trading parties.
• How demand response works, particularly for commercial and industrial users.
• Challenges of demand response, supplier compensation and the importance of accurate baselining.
• The potential impact of P415 and the accessibility it opens up to wholesale markets.
• The future of demand side response in Great Britain.

About our guest

Enel X is dedicated to helping some of the world’s largest energy consumers protect electricity grid stability in the transition to renewable energy. Their core offerings are built around maximising the commercial and environmental rewards available from energy flexibility programme participation.

By optimising how and when energy is consumed, Enel X enables commercial and industrial scale energy users to extract value from the energy markets by leveraging their flexible energy assets in ways that support a greener, more stable and resilient electricity grid. For more information on what Enel X do, head to their website.

About Modo Energy

Modo Energy provides forecasts, benchmarking, data, and insights for new energy assets - all in one place. Built for analysts, Modo helps the owners, operators, builders, and financiers of battery energy storage solutions understand the market - and make the most out of their assets.

All of our podcasts are available to watch or listen to on the Modo Energy site. To keep up with all of our latest updates, research, analysis, videos, podcasts, data visualizations, live events, and more, follow us on LinkedIn or Twitter. Check out The Energy Academy, our video series of bite-sized chunks explaining how different battery energy storage systems work. For more information on how P415 works and other market updates, check out our written research.

A ‘Herculean effort’ in renewable buildout is the description used in NESO’s Clean Power 2030 report, outlining practical advice for the government on achieving a power system by 2030. The report defines what ‘Clean Energy’ means (>95% clean power generation by 2030) and discusses what buildout would need to look like in order to reach these targets. A staggering 70GW of new renewable generation is predicted to be needed to reach the targets in the ambitious Further Flex and Renewables scenario. How might these suggestions be achieved in practice, and what challenges is the industry likely to face over the next 5 years in the lead-up to target dates?

In this episode Modo Market Analyst, Joe Bush joins Ed Porter to explore NESO’s Clean Power 2030 report. Over the course of the conversation, they discuss:

• The purpose of the Clean Power 2030 report and what it covers.
• The sheer scale of buildout required to meet renewable and flexibility system targets, from 50 GW to 130 GW.
• Transmission and network challenges and how the government might tackle the issue of constraint.
• The role of energy storage in managing constraints and supporting the grid.
• Exploration of potential market changes, including zonal pricing to incentivize demand location near generation.

Mentioned in this episode

• Joe’s research article - Clean Power by 2030: what would it mean for BESS?

About Modo Energy

Modo Energy provides forecasts, benchmarking, data, and insights for new energy assets - all in one place. Built for analysts, Modo helps the owners, operators, builders, and financiers of battery energy storage solutions understand the market - and make the most out of their assets.

All of our podcasts are available to watch or listen to on the Modo Energy site. To keep up with all of our latest updates, research, analysis, videos, podcasts, data visualizations, live events, and more, follow us on Linkedin or Twitter. Check out The Energy Academy, our video series of bite-sized chunks explaining how different battery energy storage systems work. For more information on how batteries can save carbon, check out our written research.

A ‘Herculean effort’ in renewable buildout is the description used in NESO’s Clean Power 2030 report, outlining practical advice for the government on achieving a power system by 2030. The report defines what ‘Clean Energy’ means (>95% clean power generation by 2030) and discusses what buildout would need to look like in order to reach these targets. A staggering 70GW of new renewable generation is predicted to be needed to reach the targets in the ambitious Further Flex and Renewables scenario. How might these suggestions be achieved in practice, and what challenges is the industry likely to face over the next 5 years in the lead-up to target dates?

In this episode Modo Market Analyst, Joe Bush joins Ed Porter to explore NESO’s Clean Power 2030 report. Over the course of the conversation, they discuss:

• The purpose of the Clean Power 2030 report and what it covers.
• The sheer scale of buildout required to meet renewable and flexibility system targets, from 50 GW to 130 GW.
• Transmission and network challenges and how the government might tackle the issue of constraint.
• The role of energy storage in managing constraints and supporting the grid.
• Exploration of potential market changes, including zonal pricing to incentivize demand location near generation.

Mentioned in this episode

• Joe’s research article - Clean Power by 2030: what would it mean for BESS?

About Modo Energy

Modo Energy provides forecasts, benchmarking, data, and insights for new energy assets - all in one place. Built for analysts, Modo helps the owners, operators, builders, and financiers of battery energy storage solutions understand the market - and make the most out of their assets.

All of our podcasts are available to watch or listen to on the Modo Energy site. To keep up with all of our latest updates, research, analysis, videos, podcasts, data visualizations, live events, and more, follow us on Linkedin or Twitter. Check out The Energy Academy, our video series of bite-sized chunks explaining how different battery energy storage systems work. For more information on how batteries can save carbon, check out our written research.

Battery energy storage systems in Great Britain are projected to save 1.4 million tonnes of CO2 in 2024. Carbon emission savings are achieved directly through a battery's energy actions, by importing low-carbon energy and exporting it when demand is high, whilst other methods include frequency response services and inertia management savings.

However, a battery's ability to reduce emissions is not inherent. Typically, they are operated to maximize profit, which may not always align with carbon-saving goals. For batteries to serve as effective tools for offsetting, there must be incentives to engage in emission-reducing behaviours. Insights into better carbon accounting and integration of storage into carbon accounting frameworks are some of the ways that can help identify how and where batteries can make the most impact.

In this episode, Quentin talks to Tierra Climate Co-founder and CTO, Emma Konet. Over the course of the conversation, they discuss:

• The ‘four quadrants’ of carbon offsetting and where battery energy storage sits in this framework.
• The complexities in accurately measuring emissions and the role of voluntary carbon markets.
• Using locational marginal emissions factors for accurate carbon measurement.
• Discussion on the operational challenges of batteries in reducing emissions.
• The potential for carbon offsets to support energy storage projects financially.

Mentioned in the episode

• Modo Energy’s research article: Carbon emissions reduced by batteries in Great Britain
• White paper: supercharging battery economics, shrinking emissions

• White Paper: Charging towards net-zero

About our guest

Tierra Climate provide carbon insights to aid developers in siting and operations as well as assist corporations and utilities in making more informed procurement decisions and helpinf batteries decarbonize the grid. They offer a new class of carbon offsets that can boost battery project revenues, help accelerate decarbonization and improve grid reliability. For more information on what they do - visit their website.

About Modo Energy

Modo Energy provides forecasts, benchmarking, data, and insights for new energy assets - all in one place. Built for analysts, Modo helps the owners, operators, builders, and financiers of battery energy storage solutions understand the market - and make the most out of their assets.

All of our podcasts are available to watch or listen to on the Modo Energy site. To keep up with all of our latest updates, research, analysis, videos, podcasts, data visualizations, live events, and more, follow us on Linkedin or Twitter. Check out The Energy Academy, our video series of bite-sized chunks explaining how different battery energy storage systems work.

Battery energy storage systems in Great Britain are projected to save 1.4 million tonnes of CO2 in 2024. Carbon emission savings are achieved directly through a battery's energy actions, by importing low-carbon energy and exporting it when demand is high, whilst other methods include frequency response services and inertia management savings.

However, a battery's ability to reduce emissions is not inherent. Typically, they are operated to maximize profit, which may not always align with carbon-saving goals. For batteries to serve as effective tools for offsetting, there must be incentives to engage in emission-reducing behaviours. Insights into better carbon accounting and integration of storage into carbon accounting frameworks are some of the ways that can help identify how and where batteries can make the most impact.

In this episode, Quentin talks to Tierra Climate Co-founder and CTO, Emma Konet. Over the course of the conversation, they discuss:

• The ‘four quadrants’ of carbon offsetting and where battery energy storage sits in this framework.
• The complexities in accurately measuring emissions and the role of voluntary carbon markets.
• Using locational marginal emissions factors for accurate carbon measurement.
• Discussion on the operational challenges of batteries in reducing emissions.
• The potential for carbon offsets to support energy storage projects financially.

Mentioned in the episode

• Modo Energy’s research article: Carbon emissions reduced by batteries in Great Britain
• White paper: supercharging battery economics, shrinking emissions

• White Paper: Charging towards net-zero

About our guest

Tierra Climate provide carbon insights to aid developers in siting and operations as well as assist corporations and utilities in making more informed procurement decisions and helpinf batteries decarbonize the grid. They offer a new class of carbon offsets that can boost battery project revenues, help accelerate decarbonization and improve grid reliability. For more information on what they do - visit their website.

About Modo Energy

Modo Energy provides forecasts, benchmarking, data, and insights for new energy assets - all in one place. Built for analysts, Modo helps the owners, operators, builders, and financiers of battery energy storage solutions understand the market - and make the most out of their assets.

All of our podcasts are available to watch or listen to on the Modo Energy site. To keep up with all of our latest updates, research, analysis, videos, podcasts, data visualizations, live events, and more, follow us on Linkedin or Twitter. Check out The Energy Academy, our video series of bite-sized chunks explaining how different battery energy storage systems work. For more information battery energy storage and cell costs, check out our written research.

Understanding the factors driving cost reductions in battery cells is crucial for staying competitive. As demand for energy storage skyrockets, the pressure to reduce costs has never been higher. Material costs are not the only thing influencing prices, breakthroughs in cell chemistry, system efficiency and manufacturing practices all play a role in determining system prices.

In this week’s episode, Head of Battery Costs at CRU - Aaron Wade joins Ed Porter to explore the latest in supply chain insights and cost projections, and what they mean for the future of energy storage. Over the conversation, they discuss:

• The impact of material costs on cell pricing, focusing on lithium trends.
• How cell and system innovation has contributed to lower costs.
• Changed in cell chemistry and how LFP has risen to dominance.
• Insights into the supply chain and manufacturing globally.
• What the future of battery costs might look like.

About our guest

CRU group provide business intelligence on the global metals, mining and fertilizer industries through market insight, commodity data and price assessments, strategic consultancy and communities and events. For more information, head to their website.

Aaron is Head of Battery Costs at CRU group, where he leads a team of analysts and researchers who provide insights and forecasts on the global battery costs, production methods, and technology trends. Find him on LinkedIn.

About Modo Energy

Modo Energy provides forecasts, benchmarking, data, and insights for new energy assets - all in one place. Built for analysts, Modo helps the owners, operators, builders, and financiers of battery energy storage solutions understand the market - and make the most out of their assets.

All of our podcasts are available to watch or listen to on the Modo Energy site. To keep up with all of our latest updates, research, analysis, videos, podcasts, data visualizations, live events, and more, follow us on Linkedin or Twitter. Check out The Energy Academy, our video series of bite-sized chunks explaining how different battery energy storage systems work. For more information battery energy storage and cell costs, check out our written research.

Understanding the factors driving cost reductions in battery cells is crucial for staying competitive. As demand for energy storage skyrockets, the pressure to reduce costs has never been higher. Material costs are not the only thing influencing prices, breakthroughs in cell chemistry, system efficiency and manufacturing practices all play a role in determining system prices.

In this week’s episode, Head of Battery Costs at CRU - Aaron Wade joins Ed Porter to explore the latest in supply chain insights and cost projections, and what they mean for the future of energy storage. Over the conversation, they discuss:

• The impact of material costs on cell pricing, focusing on lithium trends.
• How cell and system innovation has contributed to lower costs.
• Changed in cell chemistry and how LFP has risen to dominance.
• Insights into the supply chain and manufacturing globally.
• What the future of battery costs might look like.

About our guest

CRU group provide business intelligence on the global metals, mining and fertilizer industries through market insight, commodity data and price assessments, strategic consultancy and communities and events. For more information, head to their website.

Aaron is Head of Battery Costs at CRU group, where he leads a team of analysts and researchers who provide insights and forecasts on the global battery costs, production methods, and technology trends. Find him on LinkedIn.

About Modo Energy

Modo Energy provides forecasts, benchmarking, data, and insights for new energy assets - all in one place. Built for analysts, Modo helps the owners, operators, builders, and financiers of battery energy storage solutions understand the market - and make the most out of their assets.

All of our podcasts are available to watch or listen to on the Modo Energy site. To keep up with all of our latest updates, research, analysis, videos, podcasts, data visualizations, live events, and more, follow us on Linkedin or Twitter. Check out The Energy Academy, our video series of bite-sized chunks explaining how different battery energy storage systems work. For more information battery energy storage and cell costs, check out our written research.

Battery revenues in ERCOT in June 2024 were 85% lower than June 2023, with average earnings of $45/kW (annualized), compared with when batteries earned a massive $309/kW/year in 2023.

With the summer months historically providing the bulk of high revenue days for battery energy storage, operators would expect the sixth hottest summer on record to provide a similar picture, but that has not been the case in 2024. Increased competition in Ancillary Services, a boom in renewables buildout and changes to strategic operations have resulted in a very different picture.

In this episode, Brandt Vermillion, ERCOT Market Lead at Modo Energy joins Quentin to give us insight into what has been driving battery revenues in ERCOT over the summer months.

Over the conversation, they discuss:

• Recent buildout of storage and solar PV in ERCOT.
• The historical significance of the summer months on battery revenues, and why this has changed in 2024.
• Insight into the competitive nature of the market and saturation of ancillary services.
• Introduction to DART (Day Ahead Real Time) trading as a new strategy for capturing revenue.
• The emergence of tolling agreements as a response to revenue volatility.

About Modo Energy

Modo Energy provides forecasts, benchmarking, data, and insights for new energy assets - all in one place. Built for analysts, Modo helps the owners, operators, builders, and financiers of battery energy storage solutions understand the market - and make the most out of their assets.

All of our podcasts are available to watch or listen to on the Modo Energy site. To keep up with all of our latest updates, research, analysis, videos, podcasts, data visualizations, live events, and more, follow us on Linkedin or Twitter. Check out The Energy Academy, our video series of bite-sized chunks explaining how different battery energy storage systems work. For more information on ERCOT, check out our written research.

Battery revenues in ERCOT in June 2024 were 85% lower than June 2023, with average earnings of $45/kW (annualized), compared with when batteries earned a massive $309/kW/year in 2023.

With the summer months historically providing the bulk of high revenue days for battery energy storage, operators would expect the sixth hottest summer on record to provide a similar picture, but that has not been the case in 2024. Increased competition in Ancillary Services, a boom in renewables buildout and changes to strategic operations have resulted in a very different picture.

In this episode, Brandt Vermillion, ERCOT Market Lead at Modo Energy joins Quentin to give us insight into what has been driving battery revenues in ERCOT over the summer months.

Over the conversation, they discuss:

• Recent buildout of storage and solar PV in ERCOT.
• The historical significance of the summer months on battery revenues, and why this has changed in 2024.
• Insight into the competitive nature of the market and saturation of ancillary services.
• Introduction to DART (Day Ahead Real Time) trading as a new strategy for capturing revenue.
• The emergence of tolling agreements as a response to revenue volatility.

About Modo Energy

Modo Energy provides forecasts, benchmarking, data, and insights for new energy assets - all in one place. Built for analysts, Modo helps the owners, operators, builders, and financiers of battery energy storage solutions understand the market - and make the most out of their assets.

All of our podcasts are available to watch or listen to on the Modo Energy site. To keep up with all of our latest updates, research, analysis, videos, podcasts, data visualizations, live events, and more, follow us on Linkedin or Twitter. Check out The Energy Academy, our video series of bite-sized chunks explaining how different battery energy storage systems work. For more information on ERCOT, check out our written research.

With an impressive amount of renewables buildout in the pipeline, the Dutch energy market has ambitious plans for a clean energy future. However, the country is facing significant challenges with huge amounts of grid congestion and high grid fees. A lack of subsidies for standalone storage projects means that the investment case for storage currently leans more toward the colocation of projects with generation.

What does the power system and the outlook for battery energy storage look like in The Netherlands? In this week’s episode, Rens Savenije, Business Lead System Integration for wind and solar at Ventolines, joins Quentin to discuss the Dutch energy market. Over the course of the conversation, they discuss:

• Dutch power market dynamics, from peak demand in the Netherlands to interconnection with other countries.

• The rapid growth of solar energy in the Netherlands and the challenges posed by grid congestion.

• Current state of grid-scale battery projects in the Netherlands and the outlook for buildout.
• The impact of grid fees in the Netherlands and what this means for standalone battery projects.

• The potential for co-located projects with wind and solar to optimize grid connections.

• Investment opportunities for storage in the Dutch market.

Mentioned in the episode

LinkedIn posts from Rens on:

• Grid fees in The Netherlands
• Current projects and pipeline in The Netherlands.
• Projected pipeline for high voltage stand-alone projects.

About our guest

Ventolines is a Dutch company, striving for a world in which renewable energy projects are valuable for everyone. From cooperatives, community associations, investors, farmers, energy suppliers, governments or consumers, Ventolines develop, build and manage renewable energy projects as well as provide advisory on renewables. For more information on what Ventolines do, check out their website.

For more analysis and research from Rens - follow him on LinkedIn.

About Modo Energy

Modo Energy provides forecasts, benchmarking, data, and insights for new energy assets - all in one place. Built for analysts, Modo helps the owners, operators, builders, and financiers of battery energy storage solutions understand the market - and make the most out of their assets.

All of our podcasts are available to watch or listen to on the Modo Energy site. To keep up with all of our latest updates, research, analysis, videos, podcasts, data visualizations, live events, and more, follow us on Linkedin or Twitter. Check out The Energy Academy, our video series of bite-sized chunks explaining how different battery energy storage systems work. For more information on virtual power plants, check out our written research.