Transmission

What if a battery storage project could lock in its revenue before it's earned it? SSE and Statkraft have done just that with a battery revenue swap: SSE gave up the ups and downs of battery income for a fixed price, Statkraft took them on, and both energy companies came out with less risk. On this episode of Transmission, Ed Porter is joined by Josh Brown, Origination Team Manager at SSE, and Cian O'Duffy, Energy Markets Quantitative Analyst at Statkraft, two people behind the deal, to explain how energy trading deals like this work and who could do one next. They cover: - How a battery revenue swap is set up, and why it needs far less paperwork than a wind farm PPA. - Whether a swap changes how you run your battery, and what basis risk means for owners. - How wind farms, solar farms and energy suppliers could use battery revenues to manage risk. - Why big businesses might buy a virtual battery instead of building their own. - What's next for battery storage deals, plus two contrarian views on CfDs and battery revenues. Ask Ko, Modo Energy's AI analyst, about battery revenues, power prices, wind, solar and data centres: Try for free Transcript available here You can watch or listen to new episodes every Tuesday. Transmission is a Modo Energy production. Your host is Ed Porter - Director EMEA & APAC at Modo Energy. Chapters: 00:00 What is a battery revenue swap? 01:11 How energy trading deals get set up 03:07 Why SSE sold its battery revenue risk 05:11 Why Statkraft wanted more battery risk 06:27 How big the SSE and Statkraft deal is 07:40 How swap contracts work (ISDA explained) 10:39 Does a swap change how you run your battery? 12:35 UK-wide vs regional battery indices 13:55 Can wind and solar farms hedge with batteries? 17:26 Battery revenues vs other ways to hedge 20:27 Virtual batteries for big energy users 24:30 What comes after swaps? Options and floors 28:46 How CfDs affect negative electricity prices 31:02 Why battery revenues could be a rocky ride 33:26 Wrap-up

What if a battery storage project could lock in its revenue before it's earned it? SSE and Statkraft have done just that with a battery revenue swap: SSE gave up the ups and downs of battery income for a fixed price, Statkraft took them on, and both energy companies came out with less risk. On this episode of Transmission, Ed Porter is joined by Josh Brown, Origination Team Manager at SSE, and Cian O'Duffy, Energy Markets Quantitative Analyst at Statkraft, two people behind the deal, to explain how energy trading deals like this work and who could do one next. They cover: - How a battery revenue swap is set up, and why it needs far less paperwork than a wind farm PPA. - Whether a swap changes how you run your battery, and what basis risk means for owners. - How wind farms, solar farms and energy suppliers could use battery revenues to manage risk. - Why big businesses might buy a virtual battery instead of building their own. - What's next for battery storage deals, plus two contrarian views on CfDs and battery revenues. Ask Ko, Modo Energy's AI analyst, about battery revenues, power prices, wind, solar and data centres: Try for free Transcript available here You can watch or listen to new episodes every Tuesday. Transmission is a Modo Energy production. Your host is Ed Porter - Director EMEA & APAC at Modo Energy. Chapters: 00:00 What is a battery revenue swap? 01:11 How energy trading deals get set up 03:07 Why SSE sold its battery revenue risk 05:11 Why Statkraft wanted more battery risk 06:27 How big the SSE and Statkraft deal is 07:40 How swap contracts work (ISDA explained) 10:39 Does a swap change how you run your battery? 12:35 UK-wide vs regional battery indices 13:55 Can wind and solar farms hedge with batteries? 17:26 Battery revenues vs other ways to hedge 20:27 Virtual batteries for big energy users 24:30 What comes after swaps? Options and floors 28:46 How CfDs affect negative electricity prices 31:02 Why battery revenues could be a rocky ride 33:26 Wrap-up

Battery storage in Germany has a grid connection problem: far more projects want to connect than the grid can take, so Germany has scrapped first come, first served and moved to a maturity-based allocation scheme that rewards projects that are ready to build. But for 50Hertz and Germany's other transmission system operators, connecting BESS is only half the challenge. Merchant batteries could push grid congestion costs and grid fees up, or bring them down. Wilhelm Kiewitt, Head of Energy Economics at 50Hertz, one of Germany's four transmission system operators, joins Ed Porter to explain how a grid operator sees the battery boom from the inside. They cover: Why Germany scrapped first come, first served for grid connections, and how the new maturity-based scheme scores projects on land, permits and finance instead of speed. How 50Hertz went from a handful of transmission connection requests a year to more than 100, and why even the 14GW of batteries already holding grid reservations may not all get built. Should batteries pay more towards wider grid upgrades? Why Wilhelm says no, and why data centres are a different case. Dynamic grid fees or smaller bidding zones? Where Wilhelm and Ed disagree on the cleanest way to send batteries to where the grid needs them. Could merchant batteries cut Germany's roughly 4 billion euros a year in congestion management costs, or push them up? Building in Germany? Ask Ko, Modo Energy's AI analyst, what a battery earns there today, how it compares with wind and solar, and where power prices are heading. Try for free. Transcript available here Themen: Batteriespeicher, Netzanschluss, Reifegradverfahren, Netzentgelte, Engpassmanagement, 50Hertz

Battery storage in Germany has a grid connection problem: far more projects want to connect than the grid can take, so Germany has scrapped first come, first served and moved to a maturity-based allocation scheme that rewards projects that are ready to build. But for 50Hertz and Germany's other transmission system operators, connecting BESS is only half the challenge. Merchant batteries could push grid congestion costs and grid fees up, or bring them down. Wilhelm Kiewitt, Head of Energy Economics at 50Hertz, one of Germany's four transmission system operators, joins Ed Porter to explain how a grid operator sees the battery boom from the inside. They cover: Why Germany scrapped first come, first served for grid connections, and how the new maturity-based scheme scores projects on land, permits and finance instead of speed. How 50Hertz went from a handful of transmission connection requests a year to more than 100, and why even the 14GW of batteries already holding grid reservations may not all get built. Should batteries pay more towards wider grid upgrades? Why Wilhelm says no, and why data centres are a different case. Dynamic grid fees or smaller bidding zones? Where Wilhelm and Ed disagree on the cleanest way to send batteries to where the grid needs them. Could merchant batteries cut Germany's roughly 4 billion euros a year in congestion management costs, or push them up? Building in Germany? Ask Ko, Modo Energy's AI analyst, what a battery earns there today, how it compares with wind and solar, and where power prices are heading. Try for free. Transcript available here Themen: Batteriespeicher, Netzanschluss, Reifegradverfahren, Netzentgelte, Engpassmanagement, 50Hertz

Battery storage investment in Europe now depends less on whether the revenue exists and more on how it gets financed. With Italy's first MACSE auction won largely by a single player while Germany's fully merchant market is pushing lenders towards shorter, tighter debt, investors have to work out what makes a battery project bankable without a long-term contract. Grace Kankindi, Deputy Head of Investment Management at Aquila Clean Energy, joins Ed Porter to walk through how she assesses battery investments across multiple European markets. They cover: - Why the first MACSE auction worked as designed, even though prices cleared low and one bidder took most of the contracts, and what new anti-concentration rules could change in round two. - What happens to Italian battery projects that miss out on MACSE, from tolling to the capacity market, and why Italian lenders still won't back fully merchant projects. - How lenders are financing merchant batteries in Germany, with debt terms of around 3 to 7 years instead of 15 to 20, and cash sweeps to pay debt down faster. - The risk investors most often underprice, the optimiser, and why the lowest profit share isn't always the cheapest deal as German two-hour battery revenues fall. - Why timing decides returns in smaller markets like Lithuania and Finland, why Poland is next on Grace's radar, and why she thinks contracted revenue is riskier than it looks. Want to stress-test how a German battery's revenues hold up as saturation sets in? Ko, Modo Energy's AI analyst, is built for exactly these questions. Transcript available here Chapters 0:00 Intro 1:22 MACSE Auction Results and What People Got Wrong 2:38 Italy Battery Storage Investment Beyond MACSE 5:18 MACSE vs Merchant by Italian Price Zone 6:29 Battery Revenue Strategies Without a MACSE Contract 10:05 Battery Project Finance: MACSE, Tolling and Merchant 12:12 Second MACSE Auction and Anti-Concentration Rules 13:58 Merchant Battery Financing in Germany 16:14 What Lenders Want From a Merchant BESS Project 18:38 German Battery Revenue Saturation 20:27 Battery Optimiser Risk and Profit Share 23:12 Dynamic Grid Fees in Germany 25:25 Diversifying a Battery Portfolio Across 12 Markets 28:13 Lithuania and Finland Battery Storage Markets 30:13 Where to Invest Next: Poland 31:12 Best Performing Battery Assets in 10 Years 33:46 The Hidden Risk in Contracted Battery Revenue

Battery storage investment in Europe now depends less on whether the revenue exists and more on how it gets financed. With Italy's first MACSE auction won largely by a single player while Germany's fully merchant market is pushing lenders towards shorter, tighter debt, investors have to work out what makes a battery project bankable without a long-term contract. Grace Kankindi, Deputy Head of Investment Management at Aquila Clean Energy, joins Ed Porter to walk through how she assesses battery investments across multiple European markets. They cover: - Why the first MACSE auction worked as designed, even though prices cleared low and one bidder took most of the contracts, and what new anti-concentration rules could change in round two. - What happens to Italian battery projects that miss out on MACSE, from tolling to the capacity market, and why Italian lenders still won't back fully merchant projects. - How lenders are financing merchant batteries in Germany, with debt terms of around 3 to 7 years instead of 15 to 20, and cash sweeps to pay debt down faster. - The risk investors most often underprice, the optimiser, and why the lowest profit share isn't always the cheapest deal as German two-hour battery revenues fall. - Why timing decides returns in smaller markets like Lithuania and Finland, why Poland is next on Grace's radar, and why she thinks contracted revenue is riskier than it looks. Want to stress-test how a German battery's revenues hold up as saturation sets in? Ko, Modo Energy's AI analyst, is built for exactly these questions . Transcript available here Chapters 0:00 Intro 1:22 MACSE Auction Results and What People Got Wrong 2:38 Italy Battery Storage Investment Beyond MACSE 5:18 MACSE vs Merchant by Italian Price Zone 6:29 Battery Revenue Strategies Without a MACSE Contract 10:05 Battery Project Finance: MACSE, Tolling and Merchant 12:12 Second MACSE Auction and Anti-Concentration Rules 13:58 Merchant Battery Financing in Germany 16:14 What Lenders Want From a Merchant BESS Project 18:38 German Battery Revenue Saturation 20:27 Battery Optimiser Risk and Profit Share 23:12 Dynamic Grid Fees in Germany 25:25 Diversifying a Battery Portfolio Across 12 Markets 28:13 Lithuania and Finland Battery Storage Markets 30:13 Where to Invest Next: Poland 31:12 Best Performing Battery Assets in 10 Years 33:46 The Hidden Risk in Contracted Battery Revenue

Batteries earn volatile revenues, but lenders want fixed ones. Financial swaps that trade a fixed payment for floating battery revenue, from day-ahead spreads to full revenue indices, are how that gap is starting to close. Chris Kennedy, Founder & Managing Director at Miranda Energy, joins Ed Porter in Berlin to explain how battery swaps actually work, where basis risk hides, and why he treats power volatility as an asset class in its own right. They cover: - Why basis risk is the most misunderstood part of day-ahead TB swaps, and how round-trip efficiency, degradation schedules, payout caps and availability adjustments bring the swap closer to what the asset really earns. - How day-ahead swaps are evolving into total revenue swaps benchmarked to broader battery revenue indices like Modo Energy's, and why capturing more of the revenue stack cuts basis risk further. - Why fixed-for-floating battery swaps borrow the ISDA playbook from interest rate markets, and how a TB swap let a German solar portfolio hedge the duck curve without building a battery. - Why Chris sees volatility, not the depreciating battery, as the asset to own, and how ten-year TB swaps, credit-light offtakes for BESS SPVs and 245MW of fixed offtakes across Germany, Poland and Hungary set Amaranth Energy apart from the big trading houses. - Chris's contrarian view: the market puts too much weight on backwardation in the TB forward curve, when spreads may prove directionally persistent as solar continues to outpace flexibility. Want to go deeper on battery revenue swaps and indices? Sign up for free to Ko, Modo Energy's AI analyst, at modoenergy.com Exploring a battery revenue swap? Talk to our team about using Modo Energy indices in your contracts. Chapters: 0:00 Intro 1:19 Basis Risk in Day-Ahead Battery Swaps 3:42 Unlimited Liability, Payout Caps and Availability 6:54 Total Revenue Swaps and Battery Revenue Indices 8:21 Battery Offtakes: Profit Shares, Floors and Tolls 9:55 Fixed-for-Floating Swaps and ISDA 11:21 German Solar, Negative Rates and the Duck Curve 13:23 Virtual Battery Hedge for Solar Portfolios 16:48 Three Use Cases for TB Swaps 17:27 Power Volatility as an Asset Class 19:57 Prop Shops vs Trading Houses 22:16 Credit-Light Offtakes for BESS SPVs 23:52 Options, Volga and Exotic Battery Hedges 26:22 Poland, Hungary and Emerging BESS Markets 29:48 Spain and Negative Power Prices 31:44 The Ideal Swap Counterparty 33:31 Contrarian View

Batteries earn volatile revenues, but lenders want fixed ones. Financial swaps that trade a fixed payment for floating battery revenue, from day-ahead spreads to full revenue indices, are how that gap is starting to close. Chris Kennedy, Founder & Managing Director at Miranda Energy, joins Ed Porter in Berlin to explain how battery swaps actually work, where basis risk hides, and why he treats power volatility as an asset class in its own right. They cover: - Why basis risk is the most misunderstood part of day-ahead TB swaps, and how round-trip efficiency, degradation schedules, payout caps and availability adjustments bring the swap closer to what the asset really earns. - How day-ahead swaps are evolving into total revenue swaps benchmarked to broader battery revenue indices like Modo Energy's, and why capturing more of the revenue stack cuts basis risk further. - Why fixed-for-floating battery swaps borrow the ISDA playbook from interest rate markets, and how a TB swap let a German solar portfolio hedge the duck curve without building a battery. - Why Chris sees volatility, not the depreciating battery, as the asset to own, and how ten-year TB swaps, credit-light offtakes for BESS SPVs and 245MW of fixed offtakes across Germany, Poland and Hungary set Amaranth Energy apart from the big trading houses. - Chris's contrarian view: the market puts too much weight on backwardation in the TB forward curve, when spreads may prove directionally persistent as solar continues to outpace flexibility. Want to go deeper on battery revenue swaps and indices? Sign up for free to Ko, Modo Energy's AI analyst, at modoenergy.com Exploring a battery revenue swap? Talk to our team about using Modo Energy indices in your contracts. Chapters: 0:00 Intro 1:19 Basis Risk in Day-Ahead Battery Swaps 3:42 Unlimited Liability, Payout Caps and Availability 6:54 Total Revenue Swaps and Battery Revenue Indices 8:21 Battery Offtakes: Profit Shares, Floors and Tolls 9:55 Fixed-for-Floating Swaps and ISDA 11:21 German Solar, Negative Rates and the Duck Curve 13:23 Virtual Battery Hedge for Solar Portfolios 16:48 Three Use Cases for TB Swaps 17:27 Power Volatility as an Asset Class 19:57 Prop Shops vs Trading Houses 22:16 Credit-Light Offtakes for BESS SPVs 23:52 Options, Volga and Exotic Battery Hedges 26:22 Poland, Hungary and Emerging BESS Markets 29:48 Spain and Negative Power Prices 31:44 The Ideal Swap Counterparty 33:31 Contrarian View

Poland's battery storage market is skipping the pilot phase, with its first projects starting at 200MW, a size it took Germany five years to reach. And because of the way Poland runs its grid, two identical batteries in different locations can earn very different amounts. With over 2GW of batteries expected on the grid by 2028, the market is about to change fast. Ed Porter is joined by Aleksandra Radwańska, Country Lead Poland at Entrix, and Jan Kłoczko at Entrix, to unpack what it takes to optimise batteries in a market scaling this fast. They cover: How two identical batteries in different parts of Poland can earn very different amounts, and why each needs its own scorecard. Why getting a new battery approved to support Poland's grid can take up to two years, while everyone is still learning the rules. How over 2GW of batteries expected by 2028, in a country that peaks at around 25GW, will change the way power is traded in Poland. What battery owners are choosing between: guaranteed-income deals that help secure loans, or betting on the market. Why Poland's single national electricity price is coming under strain as the grid gets more congested. Want to see how battery assets in Poland are performing? Ko, Modo Energy's AI analyst, is built for exactly these questions . CHAPTERS 0:00 Poland's battery storage market: straight to 200MW 1:17 Central dispatch and location-based battery revenues 4:11 Credible battery optimisers vs good pitch decks 6:46 Benchmarking optimiser performance per asset 9:08 Ancillary services prequalification in Poland 12:47 Starting with 100-200MW batteries: no sandbox 13:19 Intraday liquidity and the TSO balancing crackdown 15:27 Wholesale trading patterns and Poland's duck curve 18:44 Over 2GW of batteries by 2028 20:11 Route to market: floors, tolls and merchant 24:01 Flexible and asymmetric grid connections 27:29 Lessons from bringing large batteries online 28:48 Contrarian view: one national price, a constrained grid 30:47 Contrarian view: collaboration over complaint

Poland's battery storage market is skipping the pilot phase, with its first projects starting at 200MW, a size it took Germany five years to reach. And because of the way Poland runs its grid, two identical batteries in different locations can earn very different amounts. With over 2GW of batteries expected on the grid by 2028, the market is about to change fast. Ed Porter is joined by Aleksandra Radwańska, Country Lead Poland at Entrix, and Jan Kłoczko at Entrix, to unpack what it takes to optimise batteries in a market scaling this fast. They cover: How two identical batteries in different parts of Poland can earn very different amounts, and why each needs its own scorecard. Why getting a new battery approved to support Poland's grid can take up to two years, while everyone is still learning the rules. How over 2GW of batteries expected by 2028, in a country that peaks at around 25GW, will change the way power is traded in Poland. What battery owners are choosing between: guaranteed-income deals that help secure loans, or betting on the market. Why Poland's single national electricity price is coming under strain as the grid gets more congested. Want to see how battery assets in Poland are performing? Ko, Modo Energy's AI analyst, is built for exactly these questions . CHAPTERS 0:00 Poland's battery storage market: straight to 200MW 1:17 Central dispatch and location-based battery revenues 4:11 Credible battery optimisers vs good pitch decks 6:46 Benchmarking optimiser performance per asset 9:08 Ancillary services prequalification in Poland 12:47 Starting with 100-200MW batteries: no sandbox 13:19 Intraday liquidity and the TSO balancing crackdown 15:27 Wholesale trading patterns and Poland's duck curve 18:44 Over 2GW of batteries by 2028 20:11 Route to market: floors, tolls and merchant 24:01 Flexible and asymmetric grid connections 27:29 Lessons from bringing large batteries online 28:48 Contrarian view: one national price, a constrained grid 30:47 Contrarian view: collaboration over complaint

As the electrification of heat increases and technologies like heat pump adoption grows, it's tempting to assume the gas network can simply be wound down street by street, in line with falling demand. But it’s not as simple as this: network topology, not customer count, decides when decommissioning is actually viable, and the UK gas network is nowhere close to that point today. Sam Wilson, Director of Energy System Operations at Cadent, joins the podcast to explain the engineering reality behind that constraint — and how things like pressure control, storage, and gas injection all factor into it. They cover: Why network topology, not customer count, decides when decommissioning is actually viable How gas goes from completely odourless at transmission pressure to detectable on your street. What it takes to step pressure down from around 90 bar in the transmission system, through off-takes and above ground installations, to roughly 30 millibars at a domestic appliance. How line packing turns the pipe network itself into short-duration storage, with operators raising or lowering in-pipe pressure to absorb daily demand swings. What's actually limiting how much biomethane and hydrogen can go into the network today, and why hydrogen can be blended in without any changes needed to downstream appliances. Want to know how heat electrification could reshape power demand in GB? Ask Ko - Modo Energy’s AI energy analyst - sign up for free here Transcript available here You can watch or listen to new episodes every Tuesday. Transmission is a Modo Energy production. Your host is Ed Porter - Director EMEA & APAC at Modo Energy. Chapters: 0:00 Introduction 1:09 What people get wrong about the gas network. 3:03 From gas field to home boiler: the full journey 4:33 UK's four gas distribution networks explained 5:15 Transmission pressure: 90 bar and above 6:25 Line packing - storing gas inside the pipes 7:55 Industrial vs domestic gas pressure needs 12:34 Replacing 100-year-old cast iron gas pipes 13:56 Biomethane in the gas network 17:15 Hydrogen blending: how much the network can take 21:22 Getting hydrogen to industrial gas users 23:18 Electrification vs the gas network's engineering reality 24:26 What happens when homes remove their gas connection 25:46 Why decommissioning the gas network isn't linear 31:57 Sam Wilson's contrarian take on the energy transition Music licensed via Artlist. 🔔 Subscribe for more energy market analysis: / @modoenergy 🔗 Follow Modo Energy: → LinkedIn: linkedin.com/company/modo-energy → Twitter/X: x.com/modoenergy

As the electrification of heat increases and technologies like heat pump adoption grows, it's tempting to assume the gas network can simply be wound down street by street, in line with falling demand. But it’s not as simple as this: network topology, not customer count, decides when decommissioning is actually viable, and the UK gas network is nowhere close to that point today. Sam Wilson, Director of Energy System Operations at Cadent, joins the podcast to explain the engineering reality behind that constraint — and how things like pressure control, storage, and gas injection all factor into it. They cover: Why network topology, not customer count, decides when decommissioning is actually viable How gas goes from completely odourless at transmission pressure to detectable on your street. What it takes to step pressure down from around 90 bar in the transmission system, through off-takes and above ground installations, to roughly 30 millibars at a domestic appliance. How line packing turns the pipe network itself into short-duration storage, with operators raising or lowering in-pipe pressure to absorb daily demand swings. What's actually limiting how much biomethane and hydrogen can go into the network today, and why hydrogen can be blended in without any changes needed to downstream appliances. Want to know how heat electrification could reshape power demand in GB? Ask Ko - Modo Energy’s AI energy analyst - sign up for free here Transcript available here You can watch or listen to new episodes every Tuesday. Transmission is a Modo Energy production. Your host is Ed Porter - Director EMEA & APAC at Modo Energy. Chapters: 0:00 Introduction 1:09 What people get wrong about the gas network. 3:03 From gas field to home boiler: the full journey 4:33 UK's four gas distribution networks explained 5:15 Transmission pressure: 90 bar and above 6:25 Line packing - storing gas inside the pipes 7:55 Industrial vs domestic gas pressure needs 12:34 Replacing 100-year-old cast iron gas pipes 13:56 Biomethane in the gas network 17:15 Hydrogen blending: how much the network can take 21:22 Getting hydrogen to industrial gas users 23:18 Electrification vs the gas network's engineering reality 24:26 What happens when homes remove their gas connection 25:46 Why decommissioning the gas network isn't linear 31:57 Sam Wilson's contrarian take on the energy transition Music licensed via Artlist. 🔔 Subscribe for more energy market analysis: / @modoenergy 🔗 Follow Modo Energy: → LinkedIn: linkedin.com/company/modo-energy → Twitter/X: x.com/modoenergy

The grid is swapping spinning turbines for grid forming inverters, and something is getting lost in the trade. A turbine could always throw 5 times its normal output to clear a fault, for free, using nothing but physics. Inverters can only manage around 1.5 times theirs. So if renewables are going to take over, where does that missing strength come from instead? Ben Braun is Chief Engineer at Fluence, where he's spent his career working on power electronics - from batteries to the grid. In this episode, he breaks down grid forming vs grid following inverters for everyone without an electrical engineering degree. They cover: - Why "grid forming is slower" than grid following - and why that slower response is actually what makes it more stable in a fault. - Why NESO in GB and AEMO in Australia are chasing completely different things from grid forming batteries. - Why grid inertia disappears as spinning turbines retire, and how a sudden burst of power from a battery can fake it. - Why volatile AI training loads are turning data centres into miniature grids of their own, and how batteries are used to stop that volatility ever reaching the wider network. - Why Ben's biggest concern isn't too little fault current on the grid, but too much of it - and why that could force a wave of grid upgrades most people haven't priced in Want to see which grids are paying for inertia and fault current today, or where the next stability tenders are opening? Ko, Modo Energy's AI analyst, is built for exactly these questions. Free sign up: https://modoenergy.com/product/ko?utm_source=podcast&utm_medium=youtube&utm_campaign=ben_braun&utm_content=ko_signup 📄 Related article: [companion article link] ――――――――――――――― ⏱ CHAPTERS ――――――――――――――― 00:00 – Why the Grid Needs More Than Power Flow 01:31 – Grid Forming Inverters: Common Misconceptions 04:51 – Grid Forming vs Grid Following Speed Explained 07:16 – Bathtub Analogy for Grid Forming Batteries 11:44 – NESO Stability Pathfinder and Global Grid Forming Numbers 14:11 – AEMO's System Strength Charge Explained 16:28 – Inertia and Short Circuit Level for Beginners 17:10 – Grid Inertia Explained With Lorries and Cyclists 21:44 – How Batteries Replicate Grid Inertia 23:03 – Fault Current Basics: Fuses and Circuit Breakers 26:16 – Fault Current Math and Retiring Turbines 28:52 – Voltage Stiffness and System Strength 39:07 – Reactive Power Explained With a Circus Tent 42:23 – Black Start and Grid Restoration Explained 46:57 – Grid Forming Inverters for Data Centres 53:30 – Contrarian View: Too Much Fault Current 61:18 – Grid Upgrades for High Fault Current Levels You can watch or listen to new episodes every Tuesday. Transmission is a Modo Energy production. Your host is Ed Porter - Director EMEA & APAC at Modo Energy. Music licensed via Artlist. 🔔 Subscribe for more energy market analysis: / @modoenergy 🔗 Follow Modo Energy: → LinkedIn: linkedin.com/company/modo-energy → Twitter/X: x.com/modoenergy

The grid is swapping spinning turbines for grid forming inverters, and something is getting lost in the trade. A turbine could always throw 5 times its normal output to clear a fault, for free, using nothing but physics. Inverters can only manage around 1.5 times theirs. So if renewables are going to take over, where does that missing strength come from instead? Ben Braun is Chief Engineer at Fluence, where he's spent his career working on power electronics - from batteries to the grid. In this episode, he breaks down grid forming vs grid following inverters for everyone without an electrical engineering degree. They cover: - Why "grid forming is slower" than grid following - and why that slower response is actually what makes it more stable in a fault. - Why NESO in GB and AEMO in Australia are chasing completely different things from grid forming batteries. - Why grid inertia disappears as spinning turbines retire, and how a sudden burst of power from a battery can fake it. - Why volatile AI training loads are turning data centres into miniature grids of their own, and how batteries are used to stop that volatility ever reaching the wider network. - Why Ben's biggest concern isn't too little fault current on the grid, but too much of it - and why that could force a wave of grid upgrades most people haven't priced in Want to see which grids are paying for inertia and fault current today, or where the next stability tenders are opening? Ko, Modo Energy's AI analyst, is built for exactly these questions. Free sign up: https://modoenergy.com/product/ko?utm_source=podcast&utm_medium=youtube&utm_campaign=ben_braun&utm_content=ko_signup 📄 Related article: [companion article link] ――――――――――――――― ⏱ CHAPTERS ――――――――――――――― 00:00 – Why the Grid Needs More Than Power Flow 01:31 – Grid Forming Inverters: Common Misconceptions 04:51 – Grid Forming vs Grid Following Speed Explained 07:16 – Bathtub Analogy for Grid Forming Batteries 11:44 – NESO Stability Pathfinder and Global Grid Forming Numbers 14:11 – AEMO's System Strength Charge Explained 16:28 – Inertia and Short Circuit Level for Beginners 17:10 – Grid Inertia Explained With Lorries and Cyclists 21:44 – How Batteries Replicate Grid Inertia 23:03 – Fault Current Basics: Fuses and Circuit Breakers 26:16 – Fault Current Math and Retiring Turbines 28:52 – Voltage Stiffness and System Strength 39:07 – Reactive Power Explained With a Circus Tent 42:23 – Black Start and Grid Restoration Explained 46:57 – Grid Forming Inverters for Data Centres 53:30 – Contrarian View: Too Much Fault Current 61:18 – Grid Upgrades for High Fault Current Levels You can watch or listen to new episodes every Tuesday. Transmission is a Modo Energy production. Your host is Ed Porter - Director EMEA & APAC at Modo Energy. Music licensed via Artlist. 🔔 Subscribe for more energy market analysis: / @modoenergy 🔗 Follow Modo Energy: → LinkedIn: linkedin.com/company/modo-energy → Twitter/X: x.com/modoenergy

Joe McDonald says close to 30% of a business power bill can go to trading desks, balancing costs and wholesale market fees most customers never see. Behind suppliers can sit five or six more intermediaries, each taking a cut before the energy ever arrives. Is that a market working as designed, or one taking more than it should? Joe is Founder & CEO of Tem Energy, and has spent over a decade inside the middle of the energy market, watching where the money actually goes on its way to the meter. He's now building the AI infrastructure to strip those middlemen out of the chain, with Tem already transacting over £1 billion a year across thousands of UK businesses, backed by a fresh Series B to fund expansion into Texas and Australia. They cover: Why up to 30% of a business energy bill can go to trading desks, balancing costs and wholesale fees layered behind the supplier. How forward market contracts fix energy prices for months or years and why "shape matching" between generators and buyers creates a shadow market worth billions. The P442 grid charging exemption, and why a change this small took two years to push through. Why Joe believes Tem's AI agents could remove around 90% of labor costs in energy transactions, and why he sees that trade-off as necessary. Tem Energy's plan after its Series B - expanding into Texas and Australia before Europe and the case for energy AI becoming the UK's next trillion-dollar industry. Want to dig deeper into where that 30% actually goes, or how forward contracts are priced? Ask Ko, Modo Energy's AI analyst, for free sign up also gets you trial access to Modo Energy's research. You can watch or listen to new episodes every Tuesday. Transmission is a Modo Energy production. Your host is Ed Porter - Director EMEA & APAC at Modo Energy. Chapters: 0:00 Introduction 1:24 The Real Cost Layers Behind A Business Energy Bill 3:17 The Mechanics Of Forward Energy Contracts 5:25 Shape Matching Explained 6:35 The Shadow Market Behind The Grid 11:12 Pricing And Settling Energy Trades With AI 26:46 The P442 Grid Charging Exemption 36:29 The Slow Pace Of Energy Market Regulation 37:37 The Same Problem Across Global Energy Markets 38:36 Cutting Utility Operating Costs With AI 39:22 Comparing This Model To Octopus And Kraken 40:40 Joe McDonald's Contrarian View On Energy Markets 41:34 Cutting 90% Of Energy Labor Costs With AI

Joe McDonald says close to 30% of a business power bill can go to trading desks, balancing costs and wholesale market fees most customers never see. Behind suppliers can sit five or six more intermediaries, each taking a cut before the energy ever arrives. Is that a market working as designed, or one taking more than it should? Joe is Founder & CEO of Tem Energy, and has spent over a decade inside the middle of the energy market, watching where the money actually goes on its way to the meter. He's now building the AI infrastructure to strip those middlemen out of the chain, with Tem already transacting over £1 billion a year across thousands of UK businesses, backed by a fresh Series B to fund expansion into Texas and Australia. They cover: Why up to 30% of a business energy bill can go to trading desks, balancing costs and wholesale fees layered behind the supplier. How forward market contracts fix energy prices for months or years and why "shape matching" between generators and buyers creates a shadow market worth billions. The P442 grid charging exemption, and why a change this small took two years to push through. Why Joe believes Tem's AI agents could remove around 90% of labor costs in energy transactions, and why he sees that trade-off as necessary. Tem Energy's plan after its Series B - expanding into Texas and Australia before Europe and the case for energy AI becoming the UK's next trillion-dollar industry. Want to dig deeper into where that 30% actually goes, or how forward contracts are priced? Ask Ko, Modo Energy's AI analyst, for free sign up also gets you trial access to Modo Energy's research. You can watch or listen to new episodes every Tuesday. Transmission is a Modo Energy production. Your host is Ed Porter - Director EMEA & APAC at Modo Energy. Chapters: 0:00 Introduction 1:24 The Real Cost Layers Behind A Business Energy Bill 3:17 The Mechanics Of Forward Energy Contracts 5:25 Shape Matching Explained 6:35 The Shadow Market Behind The Grid 11:12 Pricing And Settling Energy Trades With AI 26:46 The P442 Grid Charging Exemption 36:29 The Slow Pace Of Energy Market Regulation 37:37 The Same Problem Across Global Energy Markets 38:36 Cutting Utility Operating Costs With AI 39:22 Comparing This Model To Octopus And Kraken 40:40 Joe McDonald's Contrarian View On Energy Markets 41:34 Cutting 90% Of Energy Labor Costs With AI

Battery storage went from an unproven bet to one of Europe's fastest-growing energy assets in a but the exceptional returns early investors saw have already faded as more batteries crowd the market. The real question today isn't whether a battery can make money, it's whether an optimiser can keep making money from it, market after market, year after year. In this conversation, Brecht Dierckx, Director of Physical Asset Trading & Optimisation at Centrica, joins Ed to unpack what actually separates a good battery optimiser from an average one, and why pricing, contracts and risk are becoming as important as trading itself. They cover: - Why the exceptional early returns 2017–2018 battery investors saw are gone for good, and what actually lets some optimisers keep repeating strong performance while others can't - How battery revenue has shifted over time — from grid-support services, to adjusting trades as markets move, to buying and selling across multiple markets at once — and why each edge shrinks as more batteries chase it - Why pricing a battery deal is nothing like pricing a financial instrument, and how modelling different future scenarios (rather than simple averages) reveals the real value of holding a diversified portfolio - What project developers are actually asking optimisers for now — performance guarantees, profit shares, protection from regulatory changes — and why some of those guarantees aren't realistically workable - Which European markets look most promising for battery growth next, and how emerging grid restrictions could shape how much value new assets are able to capture Want to know how flexible connection agreements or grid restrictions are changing your battery's revenue forecast? Ask Ko, Modo Energy's AI analyst Chapters: 0:00 – Battery Storage Returns Are Saturating 1:04 – Battery Optimisation Operational Excellence 2:22 – Repeatable Battery Storage Returns 5:43 – Ancillary Services Revenue Saturation 8:14 – Battery Optimiser Performance Benchmarks 10:08 – Small Vs Large Battery Trading Teams 14:25 – AI In Energy Trading 16:29 – Autonomous AI Battery Trading Risks 18:40 – Extreme Weather Impact On Energy Trading 21:49 – Best European Battery Storage Markets 24:13 – Battery Storage Toll Pricing 28:59 – Battery Portfolio Diversification Strategy 31:36 – Flexible Connection Agreements Explained 35:51 – Battery Storage Investment Guarantees 38:30 – Battery Storage And Grid Transmission

Battery storage went from an unproven bet to one of Europe's fastest-growing energy assets in a but the exceptional returns early investors saw have already faded as more batteries crowd the market. The real question today isn't whether a battery can make money, it's whether an optimiser can keep making money from it, market after market, year after year. In this conversation, Brecht Dierckx, Director of Physical Asset Trading & Optimisation at Centrica, joins Ed to unpack what actually separates a good battery optimiser from an average one, and why pricing, contracts and risk are becoming as important as trading itself. They cover: - Why the exceptional early returns 2017–2018 battery investors saw are gone for good, and what actually lets some optimisers keep repeating strong performance while others can't - How battery revenue has shifted over time — from grid-support services, to adjusting trades as markets move, to buying and selling across multiple markets at once — and why each edge shrinks as more batteries chase it - Why pricing a battery deal is nothing like pricing a financial instrument, and how modelling different future scenarios (rather than simple averages) reveals the real value of holding a diversified portfolio - What project developers are actually asking optimisers for now — performance guarantees, profit shares, protection from regulatory changes — and why some of those guarantees aren't realistically workable - Which European markets look most promising for battery growth next, and how emerging grid restrictions could shape how much value new assets are able to capture Want to know how flexible connection agreements or grid restrictions are changing your battery's revenue forecast? Ask Ko, Modo Energy's AI analyst Chapters: 0:00 – Battery Storage Returns Are Saturating 1:04 – Battery Optimisation Operational Excellence 2:22 – Repeatable Battery Storage Returns 5:43 – Ancillary Services Revenue Saturation 8:14 – Battery Optimiser Performance Benchmarks 10:08 – Small Vs Large Battery Trading Teams 14:25 – AI In Energy Trading 16:29 – Autonomous AI Battery Trading Risks 18:40 – Extreme Weather Impact On Energy Trading 21:49 – Best European Battery Storage Markets 24:13 – Battery Storage Toll Pricing 28:59 – Battery Portfolio Diversification Strategy 31:36 – Flexible Connection Agreements Explained 35:51 – Battery Storage Investment Guarantees 38:30 – Battery Storage And Grid Transmission

This summer, Britain recorded its first ever four consecutive months of 35°C+ heat and according to the Climate Change Committee, the UK isn't ready for it, physically or emotionally. As political pressure mounts in the net zero debate over whether Britain should slow its climate transition, the CCC's chief executive makes the case that affordability and climate action are the same fight, not competing priorities. Ed sits down with Emma Pinchbeck, Chief Executive of the Climate Change Committee (CCC), to find out what preparing for a hotter Britain actually looks like, and why extreme heat has quietly overtaken flooding as the institution's top adaptation concern. They cover: Why extreme heat is now one of the CCC's top adaptation recommendations, with up to 92% of UK homes at risk of overheating by 2050. How solar and battery storage naturally track cooling demand, and why that strengthens the case for air conditioning becoming standard in UK homes. Emma’s case for accelerating rather than easing off decarbonisation, including data showing EV- and solar-equipped homes can save up to £1,900 a year on energy costs. Why UK electricity is priced roughly 4x higher than gas, well above the 2:1 ratio in countries that have successfully rolled out heat pumps. Why Emma argues cost-of-living and climate policy are "the same question," not competing priorities. Want to know why UK electricity prices are 4x higher than gas, and how that compares to countries where heat pumps have taken off? Ask Ko, Modo Energy's AI Analyst, for the market-by-market breakdown. Try Ko for free Transcript available here: Chapters: 0:00 Britain's Record-Breaking Heat 1:16 The CCC's Real Role vs. Government Policy 2:55 The Net Zero Speed Debate: Science and Political Pressure 4:38 Electrification and Household Energy Savings 9:55 Why UK Electricity Costs Four Times More Than Gas 12:57 Extreme Heat and the Case for Home Cooling 15:47 Solar, Batteries, and the Summer Cooling Demand Curve 17:34 Gas as a Strategic Reserve for Grid Security 22:43 The True Cost of Net Zero: £6.9 Trillion in Investment 25:20 Financing the Transition: Levies and Smoothing Costs 29:05 Why Demand Matters More Than Supply 31:03 Industrial Policy: Grangemouth, Port Talbot, and Manufacturing 35:27 Emma's Contrarian View: Cost and Climate as One Question 38:28 Closing Thoughts and Sign-Off Music licensed via Artlist. 🔔 Subscribe for more energy market analysis: / @modoenergy 🔗 Follow Modo Energy: → LinkedIn: linkedin.com/company/modo-energy

This summer, Britain recorded its first ever four consecutive months of 35°C+ heat and according to the Climate Change Committee, the UK isn't ready for it, physically or emotionally. As political pressure mounts in the net zero debate over whether Britain should slow its climate transition, the CCC's chief executive makes the case that affordability and climate action are the same fight, not competing priorities. Ed sits down with Emma Pinchbeck, Chief Executive of the Climate Change Committee (CCC), to find out what preparing for a hotter Britain actually looks like, and why extreme heat has quietly overtaken flooding as the institution's top adaptation concern. They cover: Why extreme heat is now one of the CCC's top adaptation recommendations, with up to 92% of UK homes at risk of overheating by 2050. How solar and battery storage naturally track cooling demand, and why that strengthens the case for air conditioning becoming standard in UK homes. Emma’s case for accelerating rather than easing off decarbonisation, including data showing EV- and solar-equipped homes can save up to £1,900 a year on energy costs. Why UK electricity is priced roughly 4x higher than gas, well above the 2:1 ratio in countries that have successfully rolled out heat pumps. Why Emma argues cost-of-living and climate policy are "the same question," not competing priorities. Want to know why UK electricity prices are 4x higher than gas, and how that compares to countries where heat pumps have taken off? Ask Ko, Modo Energy's AI Analyst, for the market-by-market breakdown. Try Ko for free Transcript available here: Chapters: 0:00 Britain's Record-Breaking Heat 1:16 The CCC's Real Role vs. Government Policy 2:55 The Net Zero Speed Debate: Science and Political Pressure 4:38 Electrification and Household Energy Savings 9:55 Why UK Electricity Costs Four Times More Than Gas 12:57 Extreme Heat and the Case for Home Cooling 15:47 Solar, Batteries, and the Summer Cooling Demand Curve 17:34 Gas as a Strategic Reserve for Grid Security 22:43 The True Cost of Net Zero: £6.9 Trillion in Investment 25:20 Financing the Transition: Levies and Smoothing Costs 29:05 Why Demand Matters More Than Supply 31:03 Industrial Policy: Grangemouth, Port Talbot, and Manufacturing 35:27 Emma's Contrarian View: Cost and Climate as One Question 38:28 Closing Thoughts and Sign-Off Music licensed via Artlist. 🔔 Subscribe for more energy market analysis: / @modoenergy 🔗 Follow Modo Energy: → LinkedIn: linkedin.com/company/modo-energy → Twitter/X: x.com/modoenergy