Statkraft agrees battery 'forward trade' with Statera
- Agreeing sale or purchase of power ahead of delivery aids BESS owners eliminate price risks
Statkraft has agreed a "forward trade" for a battery storage system had by consumer Statera Energy, eliminating price risk for the asset's trades.
Forward trades backed by battery capacity will certainly help flexible assets to smooth out their revenues by forward-hedging portions of their income, stated Statkraft.
Usually, battery assets are optimized in the frequency reaction market where power auctions occur on the day before it provides energy to the grid, along with in the "intra-day" market, when trades occur on the day of energy transfer.
This indicates the financial return protected for a battery storage asset proprietor would certainly depend upon temporary price fluctuations in the energy markets.
Statkraft has created a "forward trade" product for sites such as Statera's Creyke Beck Storage project, located near Hull in the UK.
In forward trades, the sale or purchase of power is agreed ahead of delivery, so Statkraft concurrently offers the over night power to bill the battery and also purchases the night top power discharge in volumes appropriate to the asset's technological capabilities.
This eliminates Statera's price risk, due to the fact that the new forward trade item locks in the deal prices at the same time.
This will certainly also benefit the wider energy system by adding a new resource of liquidity to the forward market as the energy system shifts to a lower carbon generation mix.
This new arrangement becomes part of a 15-year calculated collaboration between Statkraft and also Statera Energy, the UK-based designer, owner as well as operator of flexible generation and also grid-scale storage capacity, who are collaborating to optimise roughly 800MW of flexible assets, including functional projects and those in growth.
Brian Lonn, Statkraft's Head of UK Flexibility, claimed: "Although battery forward trading has been gone over in the past, our team believe that the transaction we have actually conducted in support of Creyke Beck Storage is the very first to have actually been finished effectively using this kind of structure.
" It is a very amazing moment for us and also Statera, as it represents the beginning of a new method to handle the risk and opportunities of their battery portfolio. We're expecting proceeding our collaboration with them in the years in advance."