BESS Revenues and Crypto's Surge in Demand Response with Ali Karimian (Market Optimization Director @ GridBeyond)

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Jan 9, 2025

In this engaging discussion, Ali Karimian, Market Optimization Director at GridBeyond, delves into the fast-evolving landscape of energy markets and battery storage strategies. He highlights the dynamic nature of markets like ERCOT and PJM while discussing the recent capacity market overhaul. Ali reveals how cryptocurrency miners are becoming key players in energy markets, aiding grid stability and unlocking new revenue streams. He also shares insights on regulatory changes and innovative optimization strategies to maximize battery revenues.

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INSIGHT

PJM's Capacity Market

PJM's capacity market overhaul has created lucrative opportunities for batteries.
High capacity prices and increasing load are driving demand, but interconnection times are long.

INSIGHT

Market Attractiveness for Batteries

ERCOT's volatile market presents high-risk, high-reward opportunities for battery storage.
California offers more stable returns through resource adequacy programs but less chance to get rich.

INSIGHT

Japan's Energy Market

Japan's energy market is opening to private participants, creating high-paying opportunities in ancillary services.
Unlike the US's cleared price system, Japan pays capacity and ancillary services at bid price.

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Energy grids, markets and regulatory landscapes are evolving fast. The strategies used by BESS operators must be dynamic, as operators face a maze of regional markets, shifting policies, and cutting-edge technologies. In this episode Ali Karimian, Market Optimization Director at GridBeyond joins Quentin to explore the challenges and opportunities in markets like ERCOT, California, PJM, shedding light on critical developments such as PJM’s recent capacity market overhaul and the surge in demand response programs across the country. Ali also shares insight into the role of cryptocurrency miners in energy markets, and where these unconventional players are proving vital for grid stability and unlocking new revenue streams.

Over the course of the conversation, Quentin and Ali discuss:

The differences between some of the most prominent markets for BESS in the United States, including ERCOT, CAISO and PJM.

The current landscape shaping market attractiveness for battery operations.

Policy & regulatory changes affecting ISO’s including changes to ERCOT's ancillary services framework, PJM capacity market dynamics and continual updates for CAISO.

The rise of crypto miners in energy markets and what characteristics make them suitable for supporting grid stability.

Strategies enabling crypto miners to lower effective power costs.

About our guest

GridBeyond aim to unlock the potential of energy assets, driving sustainability, resilience, and affordability towards a zero-carbon future. Their technology optimizes utility-scale renewable generation, battery storage, and industrial loads by intelligently dispatching flexibility into the right market at the right time. Enabling asset owners and energy consumers to unlock new revenues, enhance resilience, manage price volatility, and support the transition to net zero. For more information on GridBeyond - 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. Check out The Energy Academy, our video series of bite-sized chunks explaining how different battery energy storage systems work.