Managing BESS market risks in the EU's hottest market with Martin Daronnat (Engie)

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Jul 8, 2025

Martin Daronnat, Head of Flexibility and Structured Origination at Engie, dives into Germany's booming battery market, thriving without government subsidies. He discusses innovative revenue stacking across energy and grid services, revealing the emergence of fixed-price flexibility agreements for managing risk. Daronnat highlights how industrial players are reshaping the landscape and shares insights on what other countries can learn from Germany's strategies, especially regarding contract structures and navigating market volatility.

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INSIGHT

German Scale Requires Massive Flexibility

Germany needs large-scale short-term flexibility because of very high renewables targets and peak demand forecasts.
Martin expects 10–20 GW of batteries by 2030 to support ~300 GW of renewables.

INSIGHT

Wholesale And Ancillary Revenues Dominate

Batteries in Germany derive primary revenue from wholesale intraday and ancillary services rather than subsidies.
Intraday liquidity and volatility in Germany make it particularly attractive for battery revenues.

ADVICE

Hedge Longer When Markets Allow It

Hedge long-term exposures when possible because Germany allows trading many years ahead, enabling traders to take positions.
Expect more contracted structures as revenues normalize and hedging appetite rises.

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Germany’s battery boom is charging ahead - without subsidies. So how is it working? 

While many markets rely on government support to kickstart energy storage, Germany is doing things differently. With more than 500 GW of battery connection requests in the pipeline, it’s quickly becoming one of Europe’s most competitive and dynamic battery markets. 

From stacking wholesale and ancillary revenues to striking new kinds of long-term contracts, we explore how Germany’s storage sector is evolving in real time and how that’s changing the game for developers, corporates, and financiers alike. 

In this episode of Transmission, Martin Daronnat, Head of Flexibility and Structured Origination in Germany at Engie, joins Quentin to explore the market mechanisms, commercial strategies, and contract structures that are enabling battery storage to scale, without public funding. 

Highlights include:

How batteries in Germany stack revenue across energy, capacity, and grid services.
Why fixed-price flexibility agreements are emerging as a key financial innovation for managing merchant risk.
The role of large industrial players, and why developers and buyers are both leaning in.
What other countries can learn from Germany’s approach, especially when it comes to risk appetite and regulatory design.

About our guest

Martin is Head of Flexibility and Structured Origination in Germany at Engie, the French multinational electric utility. He’s at the forefront of commercialising flexibility in one of Europe’s fastest-moving energy storage markets, structuring offtake agreements, managing risk, and unlocking new revenue models for grid-scale batteries. With a background spanning power trading, corporate PPAs, and clean energy project origination, Martin brings deep insight into how flexibility is becoming investable in real-world markets. 

About Modo Energy

Modo Energy helps the owners, operators, builders, and financiers of battery energy storage solutions understand the market - and make the most out of their assets.

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