Transmission What’s driving America’s uneven battery energy storage boom (Modo Energy)
Nov 11, 2025
In this discussion, Brandt Vermillion, the U.S. research lead at Modo Energy, and Peter Berini, the Director of Industry for the U.S. at Modo Energy, unpack the uneven growth of battery energy storage across America. They examine how federal policy, market dynamics, and economic factors influence storage revenues. The duo also highlights the importance of data transparency for investors and delves into the regional variances in battery durations and offtake agreements, offering listeners a clear view of the future landscape of clean energy.
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Storage Values Differ By Market
- Battery economics and revenues vary dramatically by region because market design and incentives differ between ISOs.
- The same hardware earns different returns in ERCOT, CAISO, and PJM due to volatility, capacity rules, and policy.
Mature Markets See Arbitrage, Nascent Markets Need Policy
- Mature markets (CAISO, ERCOT) shift toward energy arbitrage as ancillary revenues saturate.
- Emerging markets (PJM, NYISO, MISO) remain policy-driven and nascent for storage deployment.
Plan Procurement Around Tax-Credit Tradeoffs
- Prepare procurement strategies around changing tax-credit rules and safe-harbor guidance.
- Evaluate whether paying more for non-China supply preserves future ITC eligibility or if cheaper imports still make sense.