Varco Energy, a UK battery asset owner with a pipeline of three long-term storage projects (LDES), has entered into an asset management software agreement with Arenko.
The deal builds on an initial trading relationship where the technology provider acted as the route to market provider for two of Varco’s battery energy storage sites (BESS), while also providing alternative other project commercialization services.
When they come online, Varco’s assets, with a combined capacity of almost 160MW/377MWh, will be integrated into Arenko’s Nimbus Performance software. The software solution provides asset owners with comprehensive data insights across diversified and complex asset portfolios.
In addition to providing performance insights and alerting and reporting capabilities, the AI-driven software platform will provide Varco with automated asset management. Arenko will trade Varco’s battery storage assets on the energy market
James Mills, managing director of Varco Energy, said: “We believe the improved visibility, control and real-time management capabilities this provides will deliver significant value to our investors and the wider energy system. As batteries emerge as the critical asset class in the energy transition, their digital nature offers a unique source of value and flexibility.”
Recently (September 5), software provider Nimbus Performance sold to Gresham House 250MW of batteries to help manage the latter’s toll arrangements with Octopus Energy.
According to Arenko Group founder and CEO Rupert Newland, the contract is “further evidence of a growing trend among the most sophisticated asset owners to focus on actively managing the technical performance of their portfolios across multiple projects and stakeholders.” .
On August 21, Modo Energy’s analysis showed that BESS projects achieved the second highest daily total revenue in 2024, reaching a high of £250/MW, just below the high of £258/MW in April.
This increase in periods of negative prices – in this case mainly driven by periods of high wind generation combined with low demand – contributed to a strong increase in BESS revenues for the end of August, with low wholesale price minimums driving up wholesale revenues and frequency response prices.
This article was originally published on our sister site, Current±.
