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Once again for those in the back, if a Bess has merchant exposure and the owner hand that risk off to a third party, they shouldn’t own that asset or need to toll it asap.
The optimiser is one of the most underpriced risks in battery storage.
For any BESS with merchant exposure, revenue depends on who is dispatching the asset. Grace Kankindi, Deputy Head of Investment at Aquila Clean Energy, says investors need to get two things right:
Aligned incentives. An optimiser chasing short-term revenue can degrade the battery aggressively, at the expense of its long-term health and value.
Market understanding. In Germany, dynamic grid fees could soon vary by location and change every 15 minutes. Optimisers will need to read local grid signals as well as wholesale prices.
Also, don’t just pick the lowest profit share in a tender. 3% of a weaker number can leave you worse off than 5% of a stronger one.
Full episode of Transmission below.
#BESS #EnergyStorage #BatteryStorage #Germany
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Peg Leg retweeted
How do we know utilities will try to block, weaken or kill transmission reforms Congress is considering now?
They've done it many times before.
Here are examples, mostly from the Southeast, courtesy of Southern, Entergy, and Duke. 1/
latitudemedia.com/news/why-f…
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Who can read this and listen to this grating ‘podcast’ from outside CA and truly believe ROWE isn’t fully all about CA and no one else?
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CAISO still showing everyone that they don’t understand, still, how Bess marginal incentives behave and even worse don’t understand DA/RT mechanics.
Scaling a DA price is meaningless to evaluating the value of RT energy.
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Apparently there are people out there that don’t get this still:
ROWE/Pathways is NOT in any way an RTO or even have a path to RTO status.
It is a bullshit term that they fully made up to sound similar to an RTO to bait idiots into joining thinking they’ll get those benefits.
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This is gonna be handed to CA and the rest will be fucked. His points outlined are necessary but not sufficient due to how ROWE/Pathways plans to have all of the implementation work done.
It will be contracted back directly to caiso who must still hold CA interest paramount.
Today I issued a letter and accompanying statement of principles concerning the governance of Western electricity markets on behalf of
@bonnevillepower. In my view, the West faces a rare opportunity to unify a fractious geography on behalf of customers.
But it will take real commitments, quickly, and if those are not made, I will not hesitate to propose BPA continue on its course to join a smaller power market, but designed with our interests in mind, which our stakeholders have put in long hours to build as an option. (Link in reply)
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Fucking policy people who have no on the ground experience fucking up the west another 20 years. Thanks for the job security I guess…
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Peg Leg retweeted
Mark my words if the rest of the west were all as one the fuckers talking seams now would all of a sudden forget those arguments and talk how ca should be its own market. M+ already has functional multistate governance why follow CA?
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Peg Leg retweeted
The underlying structure that results in PG&E being PG&E is unique to CA & will apply to any successor agency
CA has refused for many years to change the strict liability, inverse condemnation and a requirement to serve with high wildfire risk at the same rates
PG&E demanded it not be liable for causing wildfires. The Legislature did not agree. PG&E’s response: Punishment by extending already ridiculous timelines to hook up new housing and clean energy to the grid. It’s straight up extortion. We must move toward a publicly owned utility model. The shareholder model is deeply broken and doesn’t serve the public interest. sfchronicle.com/california/a…
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