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Fully charge your risk-free investment in battery energy storage systems

Fully charge your risk-free investment in battery energy storage systems

The business case for investing in battery energy storage systems has never been stronger, making batteries a favourable financial option for energy investors and developers. Learn how to maximise your investment.

Our energy infrastructure is in a state of complete transformation. Renewable technology adoption is increasing at a rapid pace to meet the demand for cleaner, less expensive energy. Integrating renewable technologies – like solar, EV charging infrastructure, and wind – with the grid, in its current state, is increasing pressure on distribution networks as they struggle to balance grid supply with consumer demand. If the grid is out of balance, that poses a resiliency threat.

One way to counter this balancing act is through installation of energy storage, like batteries. In an ideal world, battery energy storage systems (BESS) would be co-located alongside every solar and wind farm – and any site using large-scale onsite generation. But until now, the economic case has not been convincing.

Now, the economic case and financial benefits for investing in BESS technology have never been stronger and more relevant.

  1. Lithium-ion battery prices have fallen 89% over the last 10 years
  2. Renewables are expected to comprise 92% of the European Grid by 2050
  3. UK renewable power capacity has grown five-fold since 2010
  4. 26GW projected flexibility capacity is expected from European BESS in 2030
  5. Greater volatility in trading markets and increasing opportunities to participate in frequency services and other programmes are boosting revenue potential

Based on this knowledge, we know that the trend in renewable adoption is not stopping, the grid will continue to be challenged, and battery energy storage systems are expected to be pivotal in supporting the transition to a net zero energy grid while providing grid stability. However, there’s a major shortfall of energy storage to provide grid balancing and keep pace with rising volumes of renewables.

This is providing opportunity for those investing and developing grid-scale battery energy storage systems. By investing in BESS technology, energy investors and developers can exploit untapped revenue for monetising their batteries in faster response revenue stream opportunities across ancillary services, wholesale and balancing markets.

There is now a window of opportunity that makes this investment a risk-free, sustainable option that accelerates progress toward a net zero energy system – while maximising ROI.

Maximising ROI from battery energy storage systems

While the value and number of route-to-market opportunities are growing, so are the options and complexity. Optimisation of battery energy storage systems is increasingly complicated, but it doesn’t have to be. This can easily be addressed by choosing the right partner with proven capabilities and market expertise to navigate the daunting array of revenue options. This partner can simplify the process for you and ensure you receive maximum benefits from your investment.

Selecting the wrong partner – or attempting this specialist task yourself – can prove costly, risky, and very time-intensive.

Here are a few key capabilities to look for in a battery optimisation partner. They should have a proven track record of delivering the following:

1.) A high floor price for battery development

For cautious investors, a floor price gives certainty of returns. Often the longer the better, but 5–10 years is typical. It’s not for everyone though, as it does forego some of the upside potential. However, with battery prices declining, investors are closer than ever to a risk-free model.

2.) Advanced technology

Higher financial returns are possible for investors and developers who are willing to take on more risk, so ensure your partner offers a range of pricing models tailored to your appetite. More bullish investors can benefit from the higher market returns which can be enhanced by providers with more advanced platforms and optimisation technology. For example, more value can be created for batteries in ancillary markets through pooling – even in newer, faster-responding markets like dynamic containment. Furthermore, the ability to capture the highest swings in the wholesale market from day ahead positions all the way through to NIV capture for smarter charging will differentiate providers and improve your investment.

3.) Multi-market approach and top-notch trading agility

Your partner should be monitoring energy markets 24/7 and therefore be able to rapidly respond to market events in real-time. A combination of experienced human traders, trading algorithms and technology will ensure you benefit from all available opportunities and maximise returns.

4.) Elimination of risk and complexity

It may feel unnatural handing over control of your asset to someone else, but given the real-time complexity and experience required to ‘follow the money’, you need to trust your battery optimisation partner. The right partner will provide you with the confidence and peace of mind that you will be accessing the full suite of flexibility markets and emerging markets available to you.

5.) End-to-end capabilities

Your partner can further eliminate complexity by providing a streamlined process for building, installing, optimising, and maintaining your BESS technology so you don’t have to interface with various companies. Bundled offerings that include EPC (engineering, procurement, construction), O&M (operation and maintenance), energy supply as well as route-to-market and optimisation services ensure alignment and that battery availability is maximised at all times, securing healthy revenue generation.

To explore more ways of ensuring you receive the maximum ROI from your battery energy storage system, download your business case below. This business case document has been written specifically for energy developers and investors looking to accelerate risk-free, sustainable revenue opportunities that support grid stability. It will give you the tools and information you need to confidently move forward with your investment.

Learn how you can fully charge your risk-free battery investment strategy by exploiting multi-market opportunities.

Market-leading technology and trading expertise

With a wealth of experience managing battery energy storage systems across international markets, Centrica Business Solutions can optimise financial returns from your BESS with guaranteed revenue. Combining our market-leading Artificial Intelligence (AI) technology capabilities and wholesale trading expertise, we take on the back-end responsibility for managing your batteries in market – giving you the option of a minimum 7-year guaranteed rate of return along with market-beating performance in all markets.

Eliminate the complexity from investing in BESS technology with our end-to-end battery storage solutions that encompass EPC, energy supply, route-to-market optimisation in grid support and energy markets, and O&M. We can provide fully integrated, state-of-the-art and market-leading battery storage solutions, serving all of your battery needs and delivering cost-effective and profitable investments. As your end-to-end supplier, we can provide high-quality engineered products and sub-components and all the time, offer peace-of-mind optimisation in-line with system-level warranties and guarantees.

We are a consistent top performer in UK optimisation markets, and a Flex Assure founding member with a wealth of experience in ancillary service markets and wholesale markets. We are a trusted and bankable brand with over 200 years of operating in the energy industry as well as being uniquely positioned as the only optimisation provider active in all European reserves.

Our ISO27001-certified in-house optimisation platform automates energy trading using deep learning and intelligent algorithms to deploy flexibility in real-time – as well as aggregate assets to minimise degredation, optimise smart charging and deliver revenues greater than market rates. This means access to the complete range of market opportunities – from month ahead through to real-time – including ancillary, wholesale markets and grid balancing opportunities.

We offer a range of commercial models to suit different risk appetites, from a full pass through model, through to a floor structure and even an availability and utilisation payment. The team can discuss what is important to the investor in terms of returns and the bankability of revenue streams.

Let us partner with you to deliver your investment case for your battery storage solution and demonstrate how we can drive higher value from your investment.