Transmission

The introduction of balancing settlement code modification P415 aims to open up wholesale markets to all types of flexibility, decreasing barriers to entry for independent aggregators by allowing participation beyond a consumer’s licensed electricity supplier. Energy consumers that can be flexible with usage, do not currently see any value from their actions, except through their licensed electricity supplier, who not offer demand response services. The introduction of P415 will enable flexible consumers to appoint an independent aggregator, allowing participants of demand side response to enter into the wholesale energy markets and incentivize increased consumer participation.In today’s episode, Paul Troughton - Senior Director of Regulatory Affairs at Enel X joins Ed to discuss the code change that he put forward. Over the conversation, they discuss:Introduction to P415 and the roles of independent aggregators and virtual trading parties.How demand response works, particularly for commercial and industrial users.Challenges of demand response, supplier compensation and the importance of accurate baselining.The potential impact of P415 and the accessibility it opens up to wholesale markets.The future of demand side response in Great Britain.About our guest Enel X is dedicated to helping some of the world’s largest energy consumers protect electricity grid stability in the transition to renewable energy. Their core offerings are built around maximising the commercial and environmental rewards available from energy flexibility programme participation.By optimising how and when energy is consumed, Enel X enables commercial and industrial scale energy users to extract value from the energy markets by leveraging their flexible energy assets in ways that support a greener, more stable and resilient electricity grid. For more information on what Enel X 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 how P415 works and other market updates, check out our written research.

Joe Bush, a market analyst at Modo Energy, dives into Britain's ambitious Clean Power 2030 report, which aims for over 95% clean power generation. He discusses the Herculean effort required, with predictions of needing 70GW in new renewables. Joe highlights the vital role of energy storage in addressing grid constraints and explores market changes like zonal pricing to optimize demand. The conversation also touches on integrating gas generation with renewables and the associated challenges, emphasizing the urgent need for a government action plan.

Join Joe Bush, Market Analyst at Modo Energy, as he tackles the ambitious Clean Power 2030 report. He discusses the Herculean effort needed to expand renewable energy from 50GW to 130GW by the target year. Joe highlights the crucial role of energy storage in managing grid constraints and the challenges that lie ahead for the industry. The conversation also delves into market changes like zonal pricing to encourage energy demand near generation, emphasizing innovative solutions needed for a sustainable energy future.

Battery energy storage systems in Great Britain are projected to save 1.4 million tonnes of CO2 in 2024. Carbon emission savings are achieved directly through a battery's energy actions, by importing low-carbon energy and exporting it when demand is high, whilst other methods include frequency response services and inertia management savings. However, a battery's ability to reduce emissions is not inherent. Typically, they are operated to maximize profit, which may not always align with carbon-saving goals. For batteries to serve as effective tools for offsetting, there must be incentives to engage in emission-reducing behaviours. Insights into better carbon accounting and integration of storage into carbon accounting frameworks are some of the ways that can help identify how and where batteries can make the most impact.In this episode, Quentin talks to Tierra Climate Co-founder and CTO, Emma Konet. Over the course of the conversation, they discuss: The ‘four quadrants’ of carbon offsetting and where battery energy storage sits in this framework. The complexities in accurately measuring emissions and the role of voluntary carbon markets.Using locational marginal emissions factors for accurate carbon measurement.Discussion on the operational challenges of batteries in reducing emissions.The potential for carbon offsets to support energy storage projects financially.Mentioned in the episodeModo Energy’s research article: Carbon emissions reduced by batteries in Great BritainWhite paper: supercharging battery economics, shrinking emissionsWhite Paper: Charging towards net-zeroAbout our guestTierra Climate provide carbon insights to aid developers in siting and operations as well as assist corporations and utilities in making more informed procurement decisions and helpinf batteries decarbonize the grid. They offer a new class of carbon offsets that can boost battery project revenues, help accelerate decarbonization and improve grid reliability. For more information on what they do - visit 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 battery energy storage and cell costs, check out our written research.

Emma Konet, Co-founder and CTO of Tierra Climate, discusses the intricate relationship between battery energy storage and carbon offsets. She explains how batteries can significantly reduce emissions by optimizing energy use during peak demand. The conversation dives into the complexities of measuring carbon savings and the need for better integration into existing frameworks. Emma also highlights the operational challenges faced in aligning profit motives with environmental goals and the potential for carbon offsets to financially bolster clean energy projects.

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.

Aaron Wade, Head of Battery Costs at CRU Group, shares his expertise in battery technology and costs. He sheds light on the factors driving significant declines in battery prices, including lithium trends and innovative cell chemistries like LFP. The discussion covers the competitive landscape of battery manufacturing, the effects of the Inflation Reduction Act, and the challenges in the supply chain. Wade also explores future market dynamics and the critical role of recycling in sustainable battery production.

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.

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.

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.