How to Make Money with Battery Storage

The Latest Insights & Best Practices

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Public Course

How to Make Money with Battery Storage

995.00 excl. VAT

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Batteries are going to play an increasingly important role in the energy system. An increasing number of developers are keen to add battery storage systems into their existing projects, but future cash flows are highly uncertain and they are often unsure exactly how the battery will be used. A strong revenue model requires stacking of different revenue sources.

As the share of variable renewable sources in electricity systems further increase, battery systems are expected to play a growing role by providing frequency control and operational reserves as well as for wholesale arbitrage, while helping reduce grid integration costs. The more volatile electricity prices are, the greater the earning potential of batteries trading electricity on the various electricity markets.

Batteries can make money in several different ways: through a frequency response contract with the TSO, by providing grid services in other ways or by arbitrage through buying cheap power and selling power for a higher price in the liquid wholesale market.

Because batteries are so efficient, the round trip efficiency is so high, they can do spread trading, arbitrage trading, much, much better than other storage types and in many cases, other asset classes.

For companies that combine a battery with other tasks, for example to store power from their own panels, or to avoid a costly heavy power connection, the investment is less risky than for the ones that purely focus on arbitrage trading. It is uncertain whether electricity prices will fluctuate more violently in the coming years, or whether the peaks will actually level off.

During this highly interactive workshop you will be provided with the latest insights and best practices of how to obtain the maximum economic benefits when participating with batteries in the electricity market.

 

PROGRAMME:

 

Energy Storage Technologies

  • Pumped Hydro
  • Batteries
  • Hydrogen
  • Thermal Energy Storage
  • Mechanical storage
    • Flywheel
    • Compressed air energy storage

Energy Storage Value

  • Avoiding capacity investments
  • Providing operating reserves to TSOs
  • Avoiding fuel cost and wear and tear gas-fired power plants
  • Shifting energy from low price periods to high value periods

Different uses of batteries

  • Use Cases
  • Power and quality regulation
  • Energy management
  • Bridging power
  • Battery at business with own generation and consumption
  • Battery at a company with only self-generation
  • Battery within an energy hub
  • Stand-alone battery

Most important battery Features

  • Round-trip efficiency
  • Ramp rates
  • Technical lifetime
  • CAPEX
  • OPEX

Batteries can add value in different ways

  • Bypassing grid congestion
  • Saving grid fees
  • Reduce production losses through curtailment
  • Minimize feeding in own generated electricity
  • Reduce dependence on electricity market
  • Optimize value of imported electricity
  • Trading energy in electricity markets and providing system service

Merchant storage assets

  • Key revenue streams
    • Energy
    • Capacity
    • Ancillary Services
  • Future market opportunities
  • Future storage durations & technologies
  • Wholesale market & PPAs
  • Risks and Mitigation
  • Real Options Approach

How to make money with Battery storage

  • Day Ahead and Intraday Market
  • Frequency response contract with TSO
    • Frequency Containment Reserve (FCR)
    • automatic Frequency Restoration Reserve (aFRR)
  • Providing other services to TSO
  • Arbitrage
  • Congestion-neutral operation
    • Congestion service provider (CSP).
  • Battery Operating and Optimizing Challenges
    • Amount required data
    • Price forecasting
    • Modeling of the system
    • Modeling of competitors
    • Physical battery issues
    • Outsourcing operations
  • Revenue Sources
    • Optimization decisions options
    • Liquid Real time markets

Practical Information

When

Wednesday 11 September 2024, 10:00-16:00 (CET)

Where and how?

Online (MS Teams)

Price

995.00 excl. VAT

Bulk Purchase Enquiry

Contact us for more information regarding bulk purchases.