Varco Energy, a UK-based battery storage asset owner, has expanded its initial trading services relationship with technology provider Arenko.
The two have agreed an asset management software deal that sees Varco purchase Arenko’s Nimbus Performance product across its portfolio of three long-duration storage projects (LDES) with nearly 160MW/377MWh combined capacity.
The software solution provides asset owners comprehensive data insights across diversified and complex asset portfolios. The storage assets will integrate onto Nimbus as they energise, with the AI-driven software platform providing Varco with automated asset management.
Arenko will trade Varco’s battery storage assets in the energy market as well as providing performance insights and alerting and reporting capabilities.
This builds on an initial partnership signed last November, which saw Arenko act as the route to market provider for two of Varco’s battery energy storage (BESS) sites, whilst also providing alternate other project commercialisation services.
James Mills, director of Varco Energy, said: “We believe the enhanced insight, control, and real-time management capabilities this provides will deliver significant value to our investors and the broader energy system. As batteries emerge as the pivotal asset class in the energy transition, their digital nature offers a unique source of value and flexibility.”
Recently (5 September), the software provider sold Nimbus Performance to Gresham House on 250MW of batteries to help manage the latter’s tolling 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 advanced asset owners to focus on actively managing the technical performance of their portfolios across multiple projects and stakeholders”.
As covered by Current±, Arenko officially launched the beta version of its Nimbus Portfolio Performance Tool in November 2022. The company has already been providing optimisation services to two Vattenfall battery assets co-located with wind farms.
Increasing revenue for BESS projects
The value offered by batteries for grid balancing is a point of increasing interest, as grid constraints, highlighted by electrification and the addition of variable renewable energy sources, threaten net zero targets.
On 21 August, Modo Energy analysis revealed that BESS projects earned the second-highest daily total revenue in 2024, reaching a high of £250/MW, just below April’s high of £258/MW.
This rise in negative-priced periods—in this case predominantly caused by periods of high wind generation coupled with low demand—has contributed to a rise in BESS revenues for late August, with low wholesale price minimums increasing wholesale revenues and frequency response prices.
Following the Contracts for Difference (CfD) allocation round, further Modo Energy analysis suggests that 5GW of the 9.6GW of renewable energy capacity awarded contracts in AR6 could be suitable for, or has already revealed plans for, co-located battery storage. As a result, as much as 1.4GW of BESS capacity could be created as part of new renewable projects resulting from the AR6.
