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Battery revenues have increased so far in 2024, from a winter low. But what level do revenues need to reach in the long term for a positive business case? Battery projects require significant upfront capital expenditure, or Capex. This initial investment in equipment and system construction makes up around three-quarters of total project costs. We estimate that Capex for a 50 MW, 100 MWh grid-scale battery is now just under £600k/MW. At this level, a two-hour battery would need to earn between £74 and £85k/MW/year to meet a required rate of return on investment, or IRR, of 10 to 12%. This is higher than the average annualized revenues for 2024, which have been around £61k/MW/year so far. As batteries become cheaper and revenues increase, we expect rates of return to increase - meaning that projects that are currently marginal can get built. Subscribers to the GB BESS Outlook can head to the article to see a breakdown of Modo’s forecast IRR values for different battery configurations.

Balancing demand flexibility and supply availability in electrification projects: The topic of electrification is no longer centered on why and when, but on how and what. One of the first questions that must be answered at the start of an electrification project is whether the local utility grid can handle the increased load. This is not simply a question of power availability, but of […] The post Balancing demand flexibility and supply availability in electrification projects appeared first on Industrial Compliance.

At #RENMADAlmacenamiento Clean Horizon presented an overview of Battery prices and how this interferes with storage projects. The main takeaways are the following: 🔹 Costs represented in this graph correspond to fully-equipped battery enclosures (i.e., batteries together with enclosures, cooling, fire detection, and suppression systems). 🔹 Clean Horizon forecasts that a Li-ion battery enclosure’s price would reach 165 $/kWh by 2025, and 130 $/kWh by 2030. 🔹 Note: This forecast assumes that constraints on the supply chain and raw materials are alleviated. Price spikes like those observed in 2022 remain possible. At Clean Horizon, we act as owner’s engineer and lender’s technical advisors for IPPs, utilities, and lenders worldwide. We support our clients at all stages of development, from feasibility and design to procurement, construction, and commissioning. 📞 Contact us for more information about the evolution of battery prices and to learn more about how we can support you at the procurement stages. #procurement #energystorage #batteryprices

Here is 3 ways to boost your solar Installation business profit margins 1- Reduce Operating Expenses Efficiently 2- Shift Focus Towards Commercial and Industrial Clients 3- Cut Unnecessary Expenses

Being knowledgeable is key to success.

My colleagues Mark Greatholder and Aliki Zeri take a look at contracting strategies for battery storage projects, and the rise of multi-party arrangements separating out elements such as procurement, over "fully wrapped" arrangements that were once the standard. These can throw up some interesting liability issues so worth a read!

Energy Vault Reports Second Quarter 2024 Financial Results: - Announced new 400MWh battery storage project in Australia with ACEN, hired new Head of Global Sales and entered partnership with structural engineering firm Skidmore Owings & Merrill (SOM) to integrate gravity energy storage within superstructure building design - Q2 GAAP Gross margin of 27.8% driven by strong management and execution on U.S. battery projects - Q2 GAAP Net Loss of $(26.2) million; Q2 Adjusted EBITDA improved $2.3 million or 12% year-over-year to $(15.8) million - Q2 GAAP Operating Expenses of $28.1 million ; Q2 Adjusted Operating Expenses of $16.9 million, improved 23% year-over-year - Q2 results include a $1.7 million charge associated with previously announced organizational realignment and cost savings measures, expected to result in realized cost savings of $6–8 million annually, including $3-4 million in second half of 2024 - Cash and Cash Equivalents of $113.0 million with no debt as of June 30, 2024 - Reaffirming full-year 2024 guidance Read more: https://hubs.la/Q02KkcWb0 #EnergyVault #RenewableEnergy #EarningsReport #NRGV #BatteryStorage #EnergyStorage #EnergySolutions #Gravity #GravityStorage

Project managers understand that maintenance isn’t just about fixing problems—it’s about preventing them. THI Energy offers proactive maintenance solutions designed to keep your systems running efficiently in 2025. Our expert team minimizes unexpected downtimes, extends equipment lifespan, and ensures consistent performance across operations. With a focus on reducing long-term costs and avoiding delays, we help you meet deadlines without compromising quality. Stay ahead with THI as your maintenance partner. Learn more at: https://bit.ly/4fKtqfx #maintenancesolutions #projectefficiency #energymanagement #industrialmaintenance

I've been asked about Energy Performance Certificates, EPC, by several influential folks lately. I'm not sure I'm that keen to require it for all housing. The issue is that to make the useful it needs to be predictive and for that to be true the model needs to be reasonably accurate and at the very least include site and self-shading. These sorts of models are time consuming to build and quality check - and what we do in our day-to-day business. I don't see how to produce a good model without putting in the time and expertise. So that means the EPC is either useful, predictive and expensive OR cheap and not very useful. One way out of this puzzle is measured performance. There are several technologies that look like they could do this well enough. Here is a proposal to integrate this measured performance into an EPC - would be good to look into how this could fit in NZ.

This week the news has been NHS and reform, but there's still been a bit of energy activity! Average UK Day ahead electricity prices started the week around £80/MWh except for Tuesday and Wednesday when they were £34/WMh and £60/MWh.  On the back of high wind forecasts, Tuesday had 2 hours of negative pricing and an hour of zero. Morning and evening peaks have stayed strong on the price front. Near term annual UK Power prices have dropped again all week this week. Calendar 2025 UK power is at a little over £80/MWh (-£2/MWh to last week).  ‘26 followed to £74/MWh (-£1/MWh to last week) but ’27 was having none of that, dropping then recovering to around £69/MWh (+£1/MWh to last week). Good levels of gas supply continue pushing prices down at the moment in the shorter term, but there still seems no clear sentiment on 2026/2027 as there are still concerns about geopolitical issues. Front-year German power contracts are trading flat at €87/MWh (-€4/MWh vs last week) though power prices are expected to increase in the coming days due to forecasts of lower-than-average wind generation. Of course as a Yorkshireman I must mention Schneider Electric investing £42million in Scarborough, you can see David Hall's post here (https://lnkd.in/eCmVQjt3 ) EirGrid Group reported the results of the Renewable Energy Support Scheme (RESS 4) with over 1,300MW of onshore wind being supported at an average auction price of close to £81/MWh (an interesting comparison to UK's AR7).  https://lnkd.in/e_qbhneB. Ripple Founder & CEO, Sarah Merrick has called on government to help remove barriers for community energy schemes (a subject close to my heart and one that features in my upcoming white paper – albeit from a different angle) https://lnkd.in/eeFHec8S Cornwall Insight followed up last week’s AR6 results with analysis of what it means for the rest of us (energy buyers) indicating it would (could?) add about £5 a year to bills (https://lnkd.in/ebrsam7Z ). This week I’ve been talking with people about logistics and automation (including the brilliant Morag Robertson) and learning more about automation and the environmental impacts in the sector, especially considering the large number of smaller organisations. It seems there is also uncertainty in environmental regulations which is also impacting the sector (https://lnkd.in/eakdBAgM ). Following AR6 we’re already seeing some impacts in the CPPA market here at Zeigo with some interesting activity on both PPAs and prices. Whether a developer, supplier or corporate Clive Merifield can help if you’d like to know how we can help.