Modo Energy

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 can 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 'Q' Scrimshire 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. ▶ What Virtual Power Plants (VPPs) are and their crucial role in balancing and optimizing energy for a smarter grid. ▶ How virtual power plants enable market participation and unlock new opportunities for residential batteries. ▶ The importance of metering and accurate energy data for market participation. You can listen to this episode - and every previous episode of Transmission - on your favourite podcast app, or via the link in the comments below.

Version 3.2 of the Modo Energy Battery Revenue forecast for Great Britain has just been released, introducing new demand modelling for electric vehicles and heat pumps. We’ve also updated our modelling of batteries above 300 MW, and refreshed commodity prices and Capacity Market de-rating factors. We are hosting a livestream next Tuesday to look at these changes in more detail and answer your questions. Read more about the changes and sign up here: https://lnkd.in/e-wWaniQ

In 2023, distribution network operators (DNOs) contracted a record 3.2 GW of capacity into local flexibility services, but are these services suitable for grid-scale BESS? Flexibility services allow DNOs to manage constraints on the distribution network. Participants can be dispatched to reduce demand or increase supply during constrained periods - reducing network flows and the need for physical reinforcement. While the market is fragmented across the 6 different DNOs in Great Britain, the types of products offered are becoming more standardized. Three general types of service are available: Peak reduction, Scheduled Availability & Operational Utilization, and Operational Utilization. Operational Utilization is the only service likely to be utilized by grid-scale batteries. It provides access to potentially high utilization fees, without limiting trading flexibility. Functionally, this market acts similarly to the Balancing Mechanism on a local level. Providers submit demand turn-down or generation turn-up prices to an exchange and can be notified by the DNO up to 2 minutes ahead of dispatch. However, volumes in these markets are low and highly localized. In the National Grid Electricity Distribution DNO, assets were dispatched for an average of just 3 hours across the 2023 reporting year. Despite this, two grid-scale batteries have pre-qualified to participate in these services, and as these markets grow, the size of the opportunity could increase. To read more about these markets, head to the article: https://lnkd.in/e8gH5qQb

Want to find out about the latest updates in our Great Britain Forecast for Q4 2024? Join Robyn Lucas and Joseph Bush in a livestream on Tuesday 15th October, to learn about updates, including: - Future-proofed demand with advanced modelling of EVs, V2G and heat pumps - Updates to market conditions with new Capacity Market derating factors, commodity price outlooks and Balancing Mechanism dispatch rates - Refreshed wind, gas and battery buildouts This will then be followed by a live Q&A. Register your interest here - https://lu.ma/nf7m6kbt Hope to see you there.

Battery energy storage revenues in Great Britain reduced by 14% in September to £48k/MW/year. This makes it the fourth-highest revenue-generating month in 2024 so far. The reduction was driven by lower frequency response and Balancing Mechanism revenues. Despite a lower monthly revenue, on 10th September, batteries had their highest daily revenues since October 2023, generated through wholesale and Balancing Mechanism revenues. With higher gas and carbon prices and lower wind generation, power price spreads were lower but still the second-highest seen so far in 2024. Batteries also generated a higher proportion of revenue through negative prices in the Balancing Mechanism than in the wholesale markets. To find out more read the full article here - https://lnkd.in/e6VjtpRk

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, Germany is paving the way for a cleaner future. But how does the German 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 'Q' Scrimshire to provide an introduction to the German energy market. Over 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. You can listen to this episode - and every previous episode of Transmission - on your favourite podcast app, or via the link in the comments below. If you know somebody who would make a great future guest, let us know by sending a message to our producer Ysabelle Swan

In August, NESO (formerly ESO) dispatched a record-breaking 81 GWh of battery volume, 73 GWh of this was through the Open Balancing Platform (OBP). On Thursday 26th September, NESO held the quarterly Balancing Programme Update. NESO’s webinar provided updates on system changes to the Balancing Mechanism and their impact since June and progress with future developments. The webinar reviewed how increased utilization of batteries and small BMUs in the Balancing Mechanism via the open Balancing Platform (OBP) has led to increased dispatched volume. It also covered upcoming changes to the OBP and systems, including improvements to tools for constraint management and battery dispatch advice. Looking ahead, NESO’s 12-month roadmap includes retiring legacy systems, advancing OBP robustness, and rolling out national optimization capabilities. To understand these topics in more detail and find out about other Balancing Program developments, read the full article here - https://lnkd.in/e9cPpzwN

Is zonal pricing the best solution for a decentralized energy system? What does the future of energy leadership hold? What factors are driving gas prices? Does the Capacity Market support battery energy storage effectively? These are just a few of the topics we've explored on Transmission in September. You can find Transmission on the Modo Energy website, Spotify, Apple Podcasts, and YouTube. Be sure to subscribe and leave us a rating wherever you tune in!

Falling costs for lithium-ion battery energy storage could make durations of up to 10 hours cost-effective by 2030. Currently, durations of around 6 hours or less are cheaper than an equivalently-sized pumped storage plant. But by 2030 this extends to 10 hours. Battery energy storage will also see greater lifetime revenues than a pumped storage project for durations above 6 hours. These factors means BESS could play a key-role in meeting the need for long-duration energy storage in GB. For more, check out our latest deep dive here: https://lnkd.in/ewMpZW4Y

20 GW of long-duration energy storage is needed by 2050 - but how much of this could be met by BESS? While many different technologies are competing to provide long-duration storage, pumped storage hydro is the main technology operating today. Four plants are currently operational in Great Britain, totaling 2.8 GW of power capacity -  with an average duration of 17 hours. These store energy by pumping water up to a reservoir during low demand and releasing it during high demand. Because most of the cost of these plants comes from the power infrastructure, Capex doesn’t scale much with duration. A 20-hour pumped storage plant would only cost 30% more to build than a 2-hour plant.  Battery energy storage costs, however, scale much more with duration. Longer durations require more cells - which are the major cost component of BESS projects.   This means that batteries are currently only cheaper than pumped storage for durations up to around 6 hours. However, falling cell costs over time will change this, and by 2030 we project that batteries will be cheaper for durations up to around 10 hours. Because of their higher round-trip efficiency and faster response rates, batteries can also see higher average revenues - leading to an overall better investment case. Modo Energy subscribers can read the full article to find out more: https://lnkd.in/e8et5Mwc