Recording of Tuesday, May 06, 2025 | The smarter E Europe Conferences 2025 | Conference Program | Language: English | Duration: 18:22 .
Simon De Clercq from Aurora Energy Research delves into the evolving revenue structures within energy markets, with a focus on Belgium and the Netherlands. He discusses how battery storage revenues are currently bolstered by ancillary services but anticipates that increased participation will lead to reduced earnings due to market dynamics like cannibalization by 2030. For instance, in Belgian AFR capacity and FCR markets, significant price drops were observed following large-scale battery trading entries. To mitigate decreased individual market returns, batteries can diversify their income across various platforms such as wholesale day-ahead or intraday trades alongside frequency containment reserves (FCR). Future revenue diversification may include capacity mechanisms already present in some European regions and congestion management initiatives seen in Dutch grid stability efforts. Additionally, financial asset-backed trading optimization offers new opportunities despite potential upside cannibalization concerns. The article also explores energy trading dynamics focusing on optimizing bids through multiple transactions beyond fixed prices for enhanced profits—particularly relevant given the Netherlands' transmission-level congestion issues requiring re-dispatch strategies like GOPAX which significantly boosts trade value per megawatt hour when utilized effectively compared to non-participation scenarios. Furthermore, emerging avenues for battery revenues involve monetizing inertia provision traditionally linked with thermal plants via premium schemes or competitive auctions rather than bilateral contracts amidst growing system flexibility challenges where maintaining high participation rates is essential for maximizing returns across diverse ancillary services within modernized grid systems.
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Simon De Clercq
Senior Associate
Aurora Energy Research
Germany
What are emerging trends in battery storage? How are installation numbers evolving across the residential, C&I, and utility-scale battery markets? What new and existing applications are driving market growth? What can we learn from developments in other regions, such as the UK, and what insights can be applied to the European market? These are the questions that will be explored in this session.
Further Talks of this session:
Speaker
Dr. Alexander Hirnet
Vice President Device Development
sonnen GmbH
Germany
Speaker
Antonio Arruebo
Market Analyst
SolarPower Europe
Belgium
Speaker
Anna Darmani
Principal Analyst, Energy Storage Europe
Wood Mackenzie
United Kingdom
Speaker
Sepehr Soltani
Senior Analyst
Rystad Energy
Norway