Recording of Tuesday, May 06, 2025 | The smarter E Europe Conferences 2025 | Conference Program | Language: English | Duration: 6:60 .
In a recent discussion, Mikko Preuss from Terralayr shared insights on enhancing capital flow into Battery Energy Storage Systems (BESS) by balancing stability and returns. As an operator of battery assets, Terralayr emphasizes the importance of revenue management for successful BESS operations. Batteries are unique in that they thrive during market volatility when energy prices fluctuate significantly, offering high financial returns. However, this volatility poses risks for infrastructure investors who prefer stable investments due to the associated risk translating into higher capital costs or lower leverage. Preuss identifies three main challenges in commercializing batteries: limited access to contracted revenues due to small asset sizes; complexity in managing merchant revenue stacks compared to simpler renewable production assets like PV parks; and increasing demand for flexibility among off-takers facing issues like redispatch curtailment. To address these challenges, Terralayr has developed a two-sided flexibility platform connecting physical battery assets with diverse off-takers via one framework agreement and API. This approach allows asset owners greater independence from physical constraints while diversifying their off-take agreements across multiple parties such as utilities and industrials—enhancing financing options through improved return structures not bound by physical limitations but rather aligned with capital constraints.
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Mikko Preuss
Vice President Strategy & Commercial
terralayr Germany GmbH & Co. KG
Germany
The utility-scale BESS market in Germany has experienced significant growth in the last two years. Typical project size has increased by an order of magnitude over that timeframe from 20 MW to 200 MW. The number of developers in this sector has increased at a comparable rate. But how can developers make key decisions around project design when they are often not the long-term asset owners? How integrated are developers with investors during the project design phase, and what could be done more effectively?In this panel, major players from the investor and developer communities will discuss project design, commercial models including the rise of contracted off-take agreements and expected returns in this fast-growing market.
Further Talks of this session:
Speaker
Christopher Bryan
Director
Apricum - The Cleantech Advisory
Germany
Speaker
Martin Daronnat
Head of Flexibility & Structured Origination Germany
Engie
Spain
Speaker
Marcel Schepers
Product Manager Flexibility Marketing
EnBW Energie Baden-Württemberg AG
Germany