Program
Battery Business & Development Forum

In this session, we will explore investment strategies in the BESS sector. How do investors hedge their risks, particularly in connection with wind and solar power investments, and what does this mean for projects? What is their view on market risks and the possibility of hedging them with tolling agreements? What requirements must projects meet today—and in the future—to secure financing? 

In this session, we will discuss revenue expectations in Germany, Italy, and other European markets. We will explore what fair tolling agreements can look like and how they compare with the current market situation, merchant revenues, and – for some countries – capacity market revenues. Additionally, we will examine whether revenues are likely to decrease due to the cannibalization of storage, depending on various expansion scenarios. Finally, we will look at which other developments in the energy markets are crucial in the medium term. 

In this session, we will first discuss how grid operators select the recipients of grid connections. Then, we will explore how grid operators and developers can find solutions to make storage grid-supportive while ensuring market revenues are sufficient for a successful business model. This will also provide insights into which locations are likely to have good prospects for grid support in the future. Additionally, we will discuss with experts how the path to obtaining a building permit (Baugenehmigung) can be optimized. 

Italy is emerging as one of Europe's hottest battery energy storage markets, fueled by the diverse range of available investment strategies. In this session, we'll dive into the most effective approaches for maximizing your return on investment in large-scale battery energy storage. From tolling revenues under the MACSE procurement and capacity market contracts to merchant revenue capture, leading experts will dissect the pros and cons of each, along with the latest market trends. 

Asset owners find it difficult to assess whether one revenue optimizer that trades battery capacity on the markets will generate more or less revenue than another. We will discuss which backtests can provide valuable insights, what 'perfect foresight' means, whether there are meaningful benchmark indices, and what the relationship between virtual and physical trading entails. In other words, what to ask optimizer providers and which differences to pay attention to. 

In this session, we will discuss how likely certain risks are, how they affect profitability, and how developers and investors can deal with them. For example, the grid fee exemption (Netzentgeltbefreiung) will expire in 2028 if not extended as discussed. A split of the electricity price zone into two parts is being considered, and there will likely be developments regarding grid connection fees (Baukostenzuschuss). Additionally, the introduction of a capacity market could reduce BESS revenues. 

There are stark differences in energy storage requirements across Italy, determined mainly by different price zones and their limited interconnectivity. This makes location a key factor in deciding revenue-hedging strategies. This session will provide in-depth insights into Italy’s grid capacity and the regulatory challenges across its seven pricing zones. Learn how to navigate these complexities and discover effective strategies to overcome obstacles in taking your battery storage projects from concept to commercial operation date (COD). 

What do banks look at when deciding whether and under what conditions to finance BESS projects with debt capital? The bankability in terms of market risk can depend on strong tolling agreements that provide security for the offtake. However, projects with a merchant revenue stream can still be financed. Will this remain the case? In addition to market risk, there is also technical risk. What types of guarantees and product specifications can convince banks? 

If a BESS does not perform as planned, a project can fail. What specifications should be considered? How can warranty conditions best be defined in relation to the operating strategy (e.g., maximum cycles vs. cycles per day)? What are the quality expectations, and how can manufacturers be thoroughly assessed? Which specifications should be considered, for example, weight, energy density, or logistical matters? And how are prices developing? 

It is natural for photovoltaic project developers to also target the BESS market—both stand-alone and co-location. We will start the session by exploring the role of batteries in co-location projects, including aspects such as PPAs, trading revenues, reactive power services, and grid connection. We will then discuss the challenges solar project developers face, which ones may be underestimated, how to attract investors, and what lessons can be learned from experience with existing BESS.