Modo Energy

In November, it was cheaper for batteries to export energy through Dynamic Regulation High than through wholesale trading in 97% of EFA blocks. To provide Dynamic Regulation High, a battery constantly imports energy to manage grid frequency. This is a high-energy service - a 10 MW battery that performs the service all day will import 27 MWh. As a result, batteries that provide a lot of Dynamic Regulation High have a lot of energy to sell. There are multiple services batteries can choose to charge up in, with the wholesale market being one of them. In November, Dynamic Regulation High contracts were better value than the wholesale market. Overall, it was cheaper for batteries to buy energy through Dynamic Regulation High than through wholesale trading - increasing revenue earning potential through price spreads. In some cases batteries can even earn revenue through importing in Dyanmic regulation High, while they would have had to pay for this energy in the wholesale markets. On November 25th, in EFA block 2, batteries delivering Dynamic Regulation High were paid £43/MWh for the service, while it would have cost them £5/MWh to import through the wholesale market. Head to the Modo Terminal to find out how this contributed to the top-earning battery revenue strategies in November - https://lnkd.in/eqxk-YzQ

Australia's National Electricity System or NEM, the largest energy market in the country and one of the largest interconnected electricity systems in the world, delivering around 80% of all electricity consumption in Australia. In today's episode Alex Leemon - Flexibility Markets Lead at Gridcog joins Wendel Hortop for the first episode of Transmission on the Australian Energy Market - taking a look at the how the NEM operates, the current state of battery buildout in Australia and the challenges facing the system. Over the course of the conversation, they discuss: ▶︎ The differences in renewable adoption across individual states in Australia. ▶︎Overview of the National Electricity Market (NEM) and Australias other grids, as well as the Australian Energy Market Operators (AEMO) role in managing system stability. ▶︎A look at the existing 2.1GW installed battery capacity in the NEM and what the future pipeline looks like. ▶︎Challenges facing the country including, constraints, congestion and minimum system demand challenges due to rooftop solar adoption. ▶︎How recent market events are shaping AEMO’s actions to help maintain system reliability during peak demand. You can listen to this episode - and every previous episode of Transmission - on your favourite podcast app, and on the Modo terminal 

Batteries provided their highest-ever volume of wholesale energy over a two-day period on December 11th and 12th. Batteries in Great Britain exported 5.5 GWh of wholesale energy on both days, as wholesale prices reached their highest levels since 2022 back-to-back. On December 11th and 12th, day-ahead wholesale prices spiked to £341/MWh and £496/MWh, respectively. Batteries responded by exporting 1.4 GW of power in a single settlement period, their highest-ever combined power output in one market. The high wholesale price meant battery Offers in the Balancing Mechanism increased, reducing the volume of dispatches. As a result, 95% of battery exports came through wholesale markets across the two days. The focus on wholesale exports meant batteries earned £122k/MW/year from wholesale markets alone on December 12th, 60% of all revenue on that day. Revenues from frequency response also increased as prices in Dynamic Containment hit £70/MW/h. You can read the full article to find out why here: https://lnkd.in/esexX84s

9.8 GW of de-rated capacity has prequalified for the T-1 2025/26 Capacity Market auction —3.3 GW above NESO’s target of 6.5 GW. This could have a major impact on the auction’s clearing price. Of the 9.8 GW of prequalified capacity, 1.3 GW is conditionally prequalified. These units will need to fulfill specific conditions, such as lodging credit cover or submitting Relevant Planning Consents, before participating. Even if these units were to drop out of the auction, there would still be an excess of 2 GW. With T-1 auction prices declining since the 2022/23 delivery year, this excess capacity could signal a low clearing price. If prices fall to £0/kW—a scenario that requires 7.5 GW or more to remain in the auction—the auction will not clear, and no agreements will be awarded. However, based on historic trends, this outcome remains unlikely. Head to the article on the Modo Terminal to learn more about the prequalified capacity across all technologies and batteries, and how prices have changed historically - https://lnkd.in/e7qjDErK

Batteries in Great Britain earned their highest single-day revenues in exactly two years on 12th December 2024. Batteries earned £204k/MW/year on 12th December 2024, the highest daily revenue since 12th December 2022 when they earned £341k/MW/year (excluding Capacity Market revenues). This comes from an increase in wholesale trading revenues. Batteries earned £122k/MW/year, accounting for 60% of total revenue. An additional £54k/MW/year was earned through Frequency Response services which also saw higher prices. Wholesale prices in the day-ahead market reached their highest value since 12th December 2022, hitting £496/MWh at 4pm. The increased wholesale prices followed high demand coinciding with low wind generation, leading to increased CCGT generation. This further coincided with high power prices across Europe. You can see more about system conditions, battery revenues and power prices on The Terminal at Modo Energy - https://lnkd.in/eD56k7hC

Hydropower is a renewable, reliable source of energy that also offers long-duration, high-capacity storage. From tidal range systems to pumped hydro, hydropower encompasses a range of proven technologies with a track record of durability. What are the challenges and opportunities facing the hydropower sector, and how could the new cap and floor scheme boost investment confidence? In this episode, Kate Gilmartin, Chief Executive at British Hydropower Association joins Ed Porter to discuss the different types of hydropower and the role of this technology in long-duration energy storage. Over the course of the conversation, they discuss: ▶︎ The differences between the different hydropower technologies. ▶︎ The evolving role of pumped hydro with the rise of renewable energy sources. ▶︎ Importance of the technology in local energy solutions and grid resilience. ▶︎ Exploration of the challenges in developing new pumped hydro projects, including investment and planning hurdles. ▶︎How the cap and floor mechanism provides a potential solution for investment security. You can listen to this episode - and every previous episode of Transmission - on your favourite podcast app, and on the Modo terminal here - https://lnkd.in/d4RdGxTB

Batteries saw their highest-ever daily dispatched volume in the Balancing Mechanism in November, at 3 GWh per day. The in-merit dispatch rate reached its highest-ever level of 14% last month, a 2% increase from October's figure. On November 24th, batteries were dispatched for a record 5.5 GWh of Offer volume, as the dispatch rate hit 40%. The increased Offer volume contributed to high Balancing Mechanism revenues. These reached £13k/MW/year in November - their second-highest monthly revenue ever. You can read the article to find out how this impacted overall battery revenues in November. https://lnkd.in/ed7N4NEf

Day-ahead power price spreads fell 13% in November but had their highest single-day spike since December 2022. Low or negative prices have recently been the main driver of high spreads. However, in November, prices fell below £50/MWh on just three days, compared to nine days in October. Despite the overall reduction, price spreads spiked to their highest level in two years on November 6th. At 5 p.m. N2EX day-ahead prices hit £329/MWh. Wind generation fell to 2 GW as national demand peaked at 38 GW. The ElecLink (1 GW) and Viking Link (1.4 GW) interconnections were both unavailable, resulting in the tightest power margins seen this year. This meant OCGTs were needed to generate 380 MW of power. Rising gas prices have increased the running costs of these peaking plants, causing the high prices. You can read the full article to find out how these prices impacted battery revenues this November. https://lnkd.in/ed7N4NEf

Battery energy storage revenues in Great Britain fell 12% in November after reaching their yearly high in October. Batteries earned £51.9k/MW/year in November, as revenues from wholesale trading and frequency response fell sharply. Imbalance revenues - which are new to the ME BESS GB Index - also decreased. This was partially offset by the second-highest Balancing Mechanism revenue in 18 months, as batteries were dispatched for a record 3 GWh of Balancing Mechanism volume daily. The reduced revenues were due to lower wholesale price spreads, which fell to £74/MWh. This is still their second-highest level this year after prices spiked on November 6th due to tight power margins. You can read the article to find out more, including why Balancing Mechanism revenues and dispatches increased in November. https://lnkd.in/ed7N4NEf

Batteries earned 6% of their total revenues from Quick Reserve on the first delivery day of the new service. The first auction for the service closed on Tuesday 3rd November, with first delivery on Wednesday 4th November. It marks the second reserve service launched by NESO this year, following the launch of Balancing Reserve in March. The difference between these services is that Quick Reserve requires fast response times—ideal for battery energy storage. 36 batteries participated in the first auction, securing 95% of all accepted volume. Quick Reserve revenues are live on the terminal now, and you can head to the article to find out more about how batteries did in the service on its first day - https://lnkd.in/ecPsyhZc