Challenge

Multiple and continuously evolving business models make the task of identifying battery storage investment projects highly complex, and sensitive to subtle changes e.g. in electricity market design. Proving bankability in such an environment is challenging. Complexity results from multiple possible revenue streams, which may be stackable or mutually exclusive depending on project design and circumstances, as well as fast evolving technology and a variety of project idiosyncrasies.

Services provided

NRP provides confidential, independent, technology-agnostic due diligence to its clients, assisting them to explore business models based on merchant positions (e.g. trading energy), regulated markets (e.g. capacity and grid services), and the emergence of integrated local energy systems including electric vehicle charging and the heat sector, as well as exploring financing models.

Outcome

We believe that energy storage is critical for our shared energy future, but the essential challenge is one of timing. In a market that is growing and attractive, but also subject to hype and uncertainty, we provide investors with clarity on when to move.