Post-Aurora Energy Finance Conference Reflections
After attending the insightful sessions at the Aurora Energy Finance Conference, a few key trends stood out regarding the financing landscape for Battery Energy Storage Systems (BESS):
🔹 Short-term Structures Still Dominate: It's clear that market participants are still feeling out the BESS landscape, and as a result, shorter-term financial structures remain the preferred choice. This trend mirrors the cautious approach being taken due to the evolving nature of battery technology and its market economics.
🔹 Improving Debt Structures: However, as contractual structures, particularly around PPAs with BESS, become more robust and tested, I foresee improvements in Debt Service Coverage Ratios (DSCRs) and longer debt tenors. This maturation of the market could unlock new avenues for long-term financing, making these projects more viable for traditional lenders.
🔹 Revenue Stacking & Economics: One of the top priorities discussed was the need to fully understand the revenue stacking opportunities and the underlying economics of BESS, both in standalone and co-located setups. At Greencells, we are responding to this need by developing our own financial model, complete with a BESS optimization algorithm for an arbitrage case that explores both standalone and co-location scenarios. This will provide us with a more informed approach to maximizing value across different energy markets.
Excited to see how this market evolves and eager to continue shaping the future of renewable energy storage!
Continuing on the theme of #batteries to round off our last session of the day, Jesse Hettema, our Head of Netherlands & Belgium explored the challenges and opportunities regarding financing structures for batteries.
Our esteemed panellists included:
🔹Isabel Rodriguez de Rivera, Managing Director, Renewable Energy Investments, Glennmont Partners from Nuveen
🔹Lisa McDermott, Managing Director, Project and Infrastructure Finance, ABN AMRO Bank N.V.
🔹Christian Schnell, PhD, Partner, Co-Head of the Europe Energy Group, Dentons
🔹Bettina Voisin, Head of Project Finance, Neoen
#AuroraFinanceConference #BatteryStorage #EnergyConference #EnergyFinance