Transmission

Understanding the factors driving cost reductions in battery cells is crucial for staying competitive. As demand for energy storage skyrockets, the pressure to reduce costs has never been higher. Material costs are not the only thing influencing prices, breakthroughs in cell chemistry, system efficiency and manufacturing practices all play a role in determining system prices.In this week’s episode, Head of Battery Costs at CRU - Aaron Wade joins Ed Porter to explore the latest in supply chain insights and cost projections, and what they mean for the future of energy storage. Over the conversation, they discuss: The impact of material costs on cell pricing, focusing on lithium trends. How cell and system innovation has contributed to lower costs.Changed in cell chemistry and how LFP has risen to dominance.Insights into the supply chain and manufacturing globally. What the future of battery costs might look like.About our guest CRU group provide business intelligence on the global metals, mining and fertilizer industries through market insight, commodity data and price assessments, strategic consultancy and communities and events. For more information, head to their website.Aaron is Head of Battery Costs at CRU group, where he leads a team of analysts and researchers who provide insights and forecasts on the global battery costs, production methods, and technology trends. Find him on LinkedIn. About Modo EnergyModo 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 or Twitter. Check out The Energy Academy, our video series of bite-sized chunks explaining how different battery energy storage systems work. For more information battery energy storage and cell costs, check out our written research.

Battery revenues in ERCOT in June 2024 were 85% lower than June 2023, with average earnings of $45/kW (annualized), compared with when batteries earned a massive $309/kW/year in 2023. With the summer months historically providing the bulk of high revenue days for battery energy storage, operators would expect the sixth hottest summer on record to provide a similar picture, but that has not been the case in 2024. Increased competition in Ancillary Services, a boom in renewables buildout and changes to strategic operations have resulted in a very different picture.In this episode, Brandt Vermillion, ERCOT Market Lead at Modo Energy joins Quentin to give us insight into what has been driving battery revenues in ERCOT over the summer months. Over the conversation, they discuss:Recent buildout of storage and solar PV in ERCOT.The historical significance of the summer months on battery revenues, and why this has changed in 2024.Insight into the competitive nature of the market and saturation of ancillary services.Introduction to DART (Day Ahead Real Time) trading as a new strategy for capturing revenue.The emergence of tolling agreements as a response to revenue volatility.About Modo EnergyModo 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 or Twitter. Check out The Energy Academy, our video series of bite-sized chunks explaining how different battery energy storage systems work. For more information on ERCOT, check out our written research.

Brandt Vermillion, ERCOT Market Lead at Modo Energy, shares vital insights into Texas's energy landscape. He discusses the staggering drop in battery revenues from 2023 to 2024, influenced by increased competition and a boom in solar energy. The conversation highlights the significance of summer months historically, the innovative DART trading strategy for enhanced revenue, and the complexities of revenue volatility amidst changing market dynamics. Brandt sheds light on the evolving relationship between energy storage and ancillary services, making for a compelling listen.

With an impressive amount of renewables buildout in the pipeline, the Dutch energy market has ambitious plans for a clean energy future. However, the country is facing significant challenges with huge amounts of grid congestion and high grid fees. A lack of subsidies for standalone storage projects means that the investment case for storage currently leans more toward the colocation of projects with generation. What does the power system and the outlook for battery energy storage look like in The Netherlands? In this week’s episode, Rens Savenije, Business Lead System Integration for wind and solar at Ventolines, joins Quentin to discuss the Dutch energy market. Over the course of the conversation, they discuss: Dutch power market dynamics, from peak demand in the Netherlands to interconnection with other countries. The rapid growth of solar energy in the Netherlands and the challenges posed by grid congestion.Current state of grid-scale battery projects in the Netherlands and the outlook for buildout.The impact of grid fees in the Netherlands and what this means for standalone battery projects.The potential for co-located projects with wind and solar to optimize grid connections.Investment opportunities for storage in the Dutch market.Mentioned in the episodeLinkedIn posts from Rens on:Grid fees in The NetherlandsCurrent projects and pipeline in The Netherlands.Projected pipeline for high voltage stand-alone projects.About our guestVentolines is a Dutch company, striving for a world in which renewable energy projects are valuable for everyone. From cooperatives, community associations, investors, farmers, energy suppliers, governments or consumers, Ventolines develop, build and manage renewable energy projects as well as provide advisory on renewables. For more information on what Ventolines do, check out their website. For more analysis and research from Rens - follow him on LinkedIn.About Modo EnergyModo 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 or Twitter. Check out The Energy Academy, our video series of bite-sized chunks explaining how different battery energy storage systems work. For more information on virtual power plants, check out our written research.

Rens Savenije, Business Lead System Integration at Ventolines, dives into the evolving Dutch energy market. He discusses the rapid growth of solar energy and the challenges of grid congestion and high grid fees. Rens highlights the importance of co-locating battery storage with renewable projects to optimize efficiency and reduce costs. He also shares insights on the investment landscape for battery solutions, noting the need for innovative tariff structures and better policy alignment to foster a sustainable energy transition in the Netherlands.

As residential energy storage systems become more widespread, an exciting opportunity is emerging for homeowners: participating in energy markets and helping to stabilize the grid. But how can smaller home batteries combine forces to contribute during times of high demand? The answer lies in virtual power plants (VPPs). These interconnected networks of residential storage systems work together to provide energy back to the grid when needed. Not only do VPPs support grid stability, but they also create potential revenue streams for participating homeowners by compensating them for their stored energy. Geoff Ferrell, Senior Vice President of Global C&I and VPP Project Business in the Americas at sonnen, Inc. joins Quentin for this week’s episode. Over the course of the conversation, they discuss:sonnen’s role in pioneering residential energy storage and the company’s growth and market presence. Explanation of Virtual Power Plants (VPPs) and their role in energy management.How VPP’s allow market participation, and where they allow batteries to engage. Why cell chemistry matters for a residential asset. The importance of metering and accurate energy data for market participation.About our guestBorn of German Engineering and American ingenuity, sonnen products are designed to manage and store energy to increase the flexibility of our energy system and provide you with greater energy independence while enabling the energy future. Starting with individual systems that have evolved into a global network, sonnen are connecting connect people and technologies through their hardware, VPP products and more. For more information on what sonnen do, head to their website. About Modo EnergyModo 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 or Twitter. Check out The Energy Academy, our video series of bite-sized chunks explaining how different battery energy storage systems work. For more information on VPPs, check out our written research.

Geoff Ferrell, Senior Vice President at sonnen, Inc., discusses the transformative potential of virtual power plants (VPPs) in stabilizing the grid. He explains how interconnected home batteries can work collectively to support energy demands while providing homeowners with new revenue opportunities. The conversation highlights the importance of metering, the rise of lithium iron phosphate batteries, and the company's innovative journey from startup to industry leader. Farrel sheds light on the essential role of quality battery systems in optimizing energy management.

Lars Stephan, Senior Manager of Policy and Market Development at Fluence, shares valuable insights into Germany's energy landscape. He discusses the pivotal role of Battery Energy Storage Systems (BESS) amid ambitious net-zero targets. The conversation covers Germany's robust residential storage network, the importance of market interconnections in Europe, and future reforms such as the introduction of a Capacity Market. Lars also highlights innovative challenges faced by new players and the transformative impact of data on energy management.

Germany holds a unique position within the European energy system—serving as a central hub for regional interconnections, boasting a vast behind-the-meter residential storage network, 1.4GW of installed utility-scale storage and much more in the pipeline. With ambitious net zero targets, Germany is paving the way for a cleaner future. But how does its energy market function, and what role does grid-scale storage play?In this week's episode, Lars Stephan, Senior Manager of Policy and Market Development at Fluence, joins Quentin to provide a comprehensive introduction to the German energy market and the role of Battery Energy Storage Systems (BESS). Throughout the conversation, they discuss:An overview of European energy markets and the importance of interconnection between countries for stability.The fundamentals of the German energy market, including generation capacity and renewable energy targets.Future market reforms for the German system, including the introduction of a Capacity Market.The significance of Germany’s residential energy storage landscape and behind-the-meter assets.Market access, optimization, and the rise of new players in the German storage sector.And much, much more.About our guestFluence is on a mission to create a more sustainable future by transforming the way we power our world. Bringing over 16 years of experience designing, deploying, and operating complete energy storage solutions.Fluence is driving change by opening new markets to storage around the world. For more information on what they do, check out their website.About Modo EnergyModo 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 or Twitter. Check out The Energy Academy, our video series of bite-sized chunks explaining how different battery energy storage systems work. For more information on the markets in Germany, check out our written research.

Sarah Honan, Head of Policy at the ADE, shares her insights on the future of energy pricing in the UK. She highlights the debate on zonal vs. national pricing and its implications for consumers and investments. The conversation emphasizes the need for demand flexibility to support a decentralized energy model. Honan discusses the role of the National Energy System Operator in implementing strategic changes and the importance of integrating decentralized energy assets. Their recent report advocates for an inclusive approach to meet future energy demands.