"Battery investments are booming - but so are the risks"
We hear this a lot lately. And it's true, BESS offer serious upside. A well-placed 1 MW/2 MWh unit in Germany can return €170K–€270K per MW per year. Payback in ~3 years? Not bad!
But don’t get blinded by the buzz.
Markets shift fast. Look at the UK, ancillary service revenues dropped two-thirds once supply caught up. If gas prices fall, then this could shave 40% off margins. Then there's BtM with EVs, home storage, and heat pumps joining the game? Competition’s only heating up.
Here’s the fix: learn from past plays. Don’t sit out - adapt!
🔋 Stack your revenues (Arbitrage + ancillary + capacity)
🔋 Hedge your exposure
🔋 Partner smart (e.g. tech savvy traders/optimizers) and co-locate where it counts.
I'd also argue - analyse and address any skills gaps in your existing team, and hire fast (There's so much competition out there!)
The energy transition is volatile - that’s the opportunity, if you play it right.