Power of Data, Data of Power - Ep140: Quentin Draper Scrimshire
Oct 18, 2023
auto_awesome
Quentin Draper-Scrimshire, CEO of Modo Energy, discusses data analytics in battery energy storage and the battle between human traders and computer systems in the power industry. They also explore integrating grid scale batteries into the power market, financialization in the energy sector, and promote the guest's business.
Modo Energy specializes in providing data analytics for grid-scale batteries and renewable assets, aiming to optimize asset operations and inform financial decisions.
Power markets are undergoing significant changes due to grid-scale batteries and intermittent renewables, and Modo Energy's data and benchmarking indices help asset owners navigate complex decision-making in this evolving market.
Deep dives
Modo Energy: Data Analytics and Market Insights for Energy Assets
Modo Energy, led by CEO Quentin Draper Scrimshire, is a data analytics company specializing in grid-scale batteries and renewable assets. Similar to a Bloomberg terminal, Modo Energy gathers data from various sources and provides indices and benchmarks for asset owners, utilities, funds, and institutional investors in the UK and the US. Their services include benchmarking asset performance, real-time data feeds, and 20-year power market forecasts. The company aims to help clients optimize their assets' operations and make informed financial decisions. Modo Energy also believes that the future of the energy sector will be heavily influenced by the financialization of physical assets, forecasted to be a trillion-dollar market. They emphasize the need for accurate data, forecasting, and benchmarking to assess the future cash flows of energy assets, and to promote the growth of renewable energy and smart grids.
Challenges and Opportunities in Power Markets
Power markets, traditionally structured around long-term contracts, are undergoing significant changes with the rise of grid-scale batteries and intermittent renewables. Unlike traditional generators that have stable contracts or market rates, batteries require precise decision-making concerning when to discharge, charge, buy, or sell electricity. Modo Energy provides data and benchmarking indices to help asset owners and operators navigate these complex decisions. Power markets vary worldwide, with various products, trading periods, and services like frequency response. The unique flexibility and response time of batteries pose challenges to regulators and market structures still designed for traditional generators. As the market evolves, there is a shift towards real-time trading and innovative approaches to optimize the efficiency and profitability of energy assets.
The Role of Batteries and the Energy Transition
Modo Energy acknowledges the crucial role of batteries in the energy transition. While grid-scale lithium-ion batteries are limited by their capacity and discharge cycles, their influence is growing rapidly. Their deployment is viewed as an S-curve, with costs decreasing and more assets being built. Currently, the majority of batteries have a duration of one to two hours. However, Modo Energy envisions a future where greater investment in batteries, coupled with other assets like wind and nuclear, can provide reliable and flexible power sources. They see gas peaker plants serving short-term demand during extreme conditions such as cold weather or low wind periods. Modo Energy emphasizes the need for a combination of different energy sources to ensure grid stability, reliability, and security of power supply.
Energyization: A Trillion-Dollar Market
Modo Energy believes the 21st century is characterized by energyization, similar to how the 20th century saw financialization. With investments predicted to reach $120 trillion by 2050, clean energy assets like wind turbines and lithium-ion batteries will form the new steel structures of the world economy. Modo Energy focuses on providing data, benchmarking, and forecasting services to facilitate the valuation, optimization, and efficient management of these assets. They view renewables and energy transition assets as a massive market for physical assets, with financialization creating new layers of value on top. By offering accurate forecasting and performance analysis, Modo Energy aims to support the growth of renewable energy and help investors assess the future cash flows of energy assets.
This week, Michael’s guest is Quentin Draper-Scrimshire, co-founder and CEO of Modo Energy. Modo, founded in 2019, are accelerating the energy transition by enabling companies to make better, data-backed decisions hyper-focused on energy storage. Modo is used by 75% of participants in the GB market, with over 3000 subscribers. Quentin was formerly Head of Energy Storage at KiWi Power Ltd.
Links:
You can read the National Grid’s explainer on battery storage here: https://www.nationalgrid.com/stories/energy-explained/what-is-battery-storage
Watch Michael's appearance on Modo: The Podcast here: https://www.youtube.com/watch?v=pGg8VOrr7Oc
The Modo Website: https://modoenergy.com
Read a write-up of Modo's recent fundraising round: https://www.current-news.co.uk/modo-energy-secures-3-2m-to-expand-asset-success-platform/
Explore Modo's research, including technology explainers: https://modoenergy.com/research
Related Episodes:
Watch Episode 32 with Greg Jackson here: https://www.cleaningup.live/episode-32-greg-jackson/
Watch Episode 104 with Yanis Varoufakis here: https://www.cleaningup.live/ep104-yanis-varoufakis-power-markets-power-markets/
Guest Bio
Quentin Draper-Scrimshire is co-founder and CEO of Modo Energy which enables companies to make better, data-backed decisions hyper-focused on energy storage. Prior to co-founding Modo, he was Head of Energy Storage at KiWi Power and, before that, enjoyed a long stint at Centrica where he worked as engineer across a range of energy systems, including oil and gas, wind, and energy storage. Quentin holds a Master’s degree in Engineering from the University of Manchester.
Remember Everything You Learn from Podcasts
Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
