The Pexapark Podcast Charged up: The rise of Europe’s BESS offtake market
Jul 10, 2025
Apostolis Valassas, Lead BESS Analyst at Pexapark, dives into the booming battery energy storage offtake market in Europe. He discusses the evolution of contract structures, highlighting the shift from merchant agreements to tolling models. The conversation covers key geographical trends, with emerging players like Greece and Bulgaria gaining traction. Apostolis also shares insights on regulatory impacts and the future outlook for energy contracts, emphasizing the balance between financial stability and market dynamism.
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Tolling Agreements Demand Expertise
- Tolling agreements require strong credit and trading expertise due to fixed long-term financial commitments.
- Utilities often provide tolls to hedge risks and optimize portfolio flexibility effectively.
Floor Agreements Are Hybrid Structures
- Floor agreements balance revenue certainty for owners with merchant exposure.
- Floors combine elements from tolling and merchant deals but setting the right price is complex and bespoke.
Merchant Deals Grow Despite Risks
- Merchant agreements expose optimizers to revenue volatility based on performance.
- Despite saturation fears, merchant battery deals are growing quickly due to ongoing market volatility.