Entrix offers new revenue model for battery storage

Evb, Westenergie, and Eon Energy Solutions are building a 20 MW/55 MWh battery storage system which is expected to go online this year. Entrix announced Wednesday it will market the system under its new “Entrix FloorPlus” model for the first time.

Deutsche Bahn subsidiary DB Energie will pay for day-ahead flexibility for 10 years and make fixed payments to evb for defined energy capacities. Those guaranteed payments ensure stable revenue, said Entrix, providing greater planning security for the project and simultaneously facilitating finance. The flexibility secured through a power storage agreement (PSA) will be sufficient to temporarily store electricity to power 1.3 million Intercity Express kilometers annually. DB Energie has the right to call up the flexibility a day in advance, helping to stabilize its renewable energy portfolio.

The focus of the Entrix FloorPlus model is a combination of fixed revenue and market-based flexibility, said Entrix. In the case of the Beckum facility, the flexibility not used by DB Energie will be marketed by Entrix via its trading platform, for example for intraday trading and balancing energy.

The difference from traditional “tolling” models is that with FloorPlus, operators retain full control over the facility and trading strategy. The resulting balance between risk and profit is attractive for municipal utilities, institutional investors, and project developers, Entrix said. FloorPlus contracts will typically be concluded for battery storage systems with capacities of between 20 MW and 100 MW. Terms will range from three to 15 years.

Entrix said the Beckum project will be the “prelude to a series of planned FloorPlus applications in Germany.” The company believes the model solves a central problem in the electricity market: On one hand, energy suppliers and large consumers with fluctuating generation or inflexible consumption want to hedge against price fluctuation. On the other hand, battery storage operators want to hedge against low price fluctuation, as this reduces storage revenue potential. Entrix has combined both aspects of revenue in its model and incorporated them into a contractually regulated structure enabling the targeted transfer of market risk.

For DB Energie, Beckum will be its second PSA. The contract is intended to complement existing power purchase agreements for renewable energy plants and the goal is to build a diverse portfolio of storage contracts.

From pv magazine Deutschland.