Modo Energy

Operating a battery in Australia’s National Electricity Market (NEM) is no simple task. With a five-minute dispatch interval, nodal pricing, and an energy-only market structure, success hinges on the ability to process and respond to massive amounts of data in real-time. These unique market dynamics demand sophisticated strategies for battery optimization, underpinned by algorithmic bidding and advanced forecasting. As renewable penetration grows and the grid becomes more volatile, batteries are playing a pivotal role in providing fast, flexible support. But unlocking their full value requires a deep understanding of the NEM’s fast-paced, data-driven environment—where every five minutes counts. In today’s episode of Transmission, we’re joined by Matt Grover , Director of Sales Engineering and Energy Markets for Fluence in APAC. Over the course of the conversation you’ll hear about: How algorithmic bidding continues to evolve in the NEM, demanding adaptability to successfully optimize batteries. Challenges faced by asset owners in managing state of charge in real time. Local dispatch prices vs. regional settlement prices in Australia. The emergence of virtual toll agreements in the NEM. The growth of battery portfolios and the challenge of co-optimization. You can listen to this episode - and every previous episode of Transmission - on your usual podcast app or on the Modo Energy Terminal

Battery storage and renewable energy assets are only as effective as the systems that optimize them, and to do this, there needs to be clear and effective rules on how this is determined. Elexon is responsible for the Balancing & Settlement Code, or BSC, a document outlining the rules of the Balancing Mechanism and imbalance pricing in Great Britain. With the rise of smaller, aggregated assets and the push towards net zero, the energy landscape is changing fast, and things like the BSC need to adapt too. In this episode of Transmission, we’re joined by @ Peter Stanley, CEO of Elexon. Over the conversation you’ll hear about: - The role of Elexon, how the company operates and the key processes it manages. - Detailed breakdown of what the settlement process looks like in Great Britain. - The impact of changing grid dynamics on Elexon’s operations. - Elexon’s emerging role in facilitating local distributed flexibility markets. - Peter’s outlook on where optimization is headed in a changing energy landscape. You can listen to this episode - and every previous episode of Transmission - on your usual podcast app or on the Modo Energy Terminal.

Between 146 GWh and 610 GWh of BESS volume has been "skipped" in the Balancing Mechanism in 2025. At Stage 0, everything that looks like a missed opportunity is counted - including actions that may never have been feasible. This means that 610 GWh of combined battery Bids and Offers were skipped from January 1st to March 17th at this stage. By Stage 5, exclusions had been made to account for constraint management and unfeasible volumes, meaning the total skipped volume fell to 146 GWh. Overall, at each stage, in each month, batteries saw higher skip rates than the average across all technologies. Read our full analysis on the Modo Energy terminal to learn more about how battery skip rates change across exclusion stages and which technologies are most (and least) affected by skips.

In December, the National Energy System Operator (NESO) unveiled its new methodology for measuring "skip rates" in the Balancing Mechanism.   Between 1st January and 17th March 2025, skip rates varied widely - from 8% to 80%, depending on the exclusion stage and methodology used. Each exclusion stage in the NESO methodology isn’t removing volume from the system - it’s deciding whether an unactioned unit really should have been dispatched. The All BM skip rate includes system actions in its denominator, assuming they were in-merit. That keeps the total requirement high and the skip rate lower. The PSA skip rate excludes those actions, reducing the requirement and raising the skip rate. Stage 2 introduces key system-based exclusions - removing artificially system-flagged actions and units behind active constraints, as well as filtering out units with long notice times that the control room is unlikely to act on. This is where the biggest change in skip rates is seen. However, overall NESO currently considers the Stage 5 All BM skip rate the best real-time signal for the control room. To learn more about NEO's skip rate methodology and the results so far in 2025, head to the Modo Energy terminal to uncover our guide to the methodology and the results so far in 2025.

In January 2025, between 56 and 213 GWh of battery volume was skipped—equating to a skip rate of 44% to 77%, according to NESO’s latest methodology. In December NESO released its methodology for calculating skip rates—by comparing which units should have been dispatched based on price with what actually was. To account for real-world constraints that the control room faces, NESO applies exclusions at different stages of the calculation—leading to multiple skip rates depending on what’s included. We’ve just published two articles, one covering a breakdown of NESO’s methodology and another on its impact on batteries and other technologies so far in 2025. Both articles are available now on the Modo Energy Terminal.

Battery energy storage has become a key pillar of the energy transition. Understanding how investment and technology have evolved over the last decade is key to grasping the market’s growth, the role of private equity, and the challenges and opportunities that lie ahead for large-scale deployment. In this episode of Transmission, James Mills, Managing Director of Adaptogen Capital, shares his insights into the growth of the battery storage market and the role of private equity in driving change. Over the course of the conversation you’ll hear about: ⏵ How the battery storage market has evolved over the past decade – from early-stage development to large-scale deployment. ⏵ Why private equity has been crucial in scaling infrastructure and attracting institutional capital. ⏵ Financial, regulatory, and technological hurdles shaping market growth. ⏵ Emerging trends like co-located storage and grid-scale projects. ⏵ How Adaptogen Capital structures deals to mitigate risk and maximize returns. You can listen to this episode - and every previous episode of Transmission - on your usual podcast app or on the Modo Energy Terminal

Drax's potential offer boosts investor confidence in Great Britain's listed battery funds On Tuesday, Drax announced a potential 88p per share offer for Harmony Energy Income Trust (HEIT), outbidding Foresight’s earlier 84p per share proposal. HEIT shares are up 35% since the first offer was announced on 17 March, and all three of Great Britain's listed battery funds have rallied. This second bid signals growing institutional appetite for GB battery storage and may prompt further moves toward private ownership models. For a full analysis of the valuations, including financial analysis on the annual revenue needed to make a return on this investment, head over to the Modo Energy Terminal.

At Modo Energy we are expanding our battery energy storage analysis across Europe, covering Germany, Italy, Iberia, and France. This means - we are hiring! What is the job role? - We're seeking a team of market analysts to drive our European research forward. What will you do? - You'll create in-depth, data-led analysis that will help to guide the buildout and operations of new BESS assets across the continent. - You'll lead a top-tier team of analysts to deliver cutting-edge insights to energy professionals across Europe. Who are we looking for? - Individuals with expertise in power markets and data analysis. Interested? - Visit the job role on our careers page: https://lnkd.in/enbbHfDw We look forward to hearing from you!

What's driving Italy's battery boom? Unlike other regions, Italy's approach to encouraging battery buildout has been highly structured. Instead of relying on pure merchant risk, Italy’s system operator is leading capacity auctions to accelerate deployment. In this week's episode of Transmission, Mahael Fedele, CEO & Partner at Sphera Energy, shares insights into how this model is shaping investment decisions and what challenges developers face in securing grid connections. Over the conversation, you'll hear about: - Why Italy’s structured capacity auctions differ from other European markets - Whether the shift from development to asset ownership makes sense in Italy - The role of long-duration storage and alternative chemistries - How Italy’s approach compares to the UK, the US, and other leading markets You can listen to this episode - and every previous episode of Transmission - on your usual podcast app or on the Modo Energy Terminal.

Wind generation in the United Kingdom fluctuates year-on-year. Over the past decade, wind load factors have varied by: ±5% for offshore wind. ±6% for onshore wind. In the most extreme cases, annual wind loads can differ by as much as 20%. We’ve conducted a full sensitivity analysis covering wind load variability, power pricing, and its impact on battery revenue. For the full detail, head over to the the Modo Energy terminal.