When we pool third-party BESS assets, our optimisation models ensure value is allocated fairly and transparently. Assets are dispatched based on market signals, and flexibility improves outcomes by allowing the system to capture the highest value hours while avoiding uneconomic dispatch. Our approach ensures each asset contributes to – and benefits from – portfolio value, without subsidising others. The optimisation of the assets is done against the wholesale / ancillary services market based on the assets' technical parameters and agreed trading strategy. Statkraft maximises the value of the PPA through maximising the achieved gross margin for the assets. Regardless of the contractual structure with a BESS - whether profit‑sharing or fixed/secured revenues - the portfolio effect for Statkraft is driven by the composition of our asset fleet, which is predominantly solar and wind.

Taking solar as an example: during periods with more negative price hours, PV assets tend to earn less, while BESS typically benefit, and vice versa. This creates a natural offset within the portfolio. As a result, BESS impacts our overall portfolio performance and risk profile, reflecting diversification effects linked to asset mix and market conditions - not value transfer at the expense of individual assets.

Negative prices have not materialised in Italy primarily because the balancing market has a 0 €/MWh price floor. This makes it uneconomic for operators to bid negative in the day ahead market when they can instead settle at zero in balancing.

However, we already see €0/MWh prices in regions such as Sicily, Sardinia and Southern Italy during periods of high renewable output and limited system flexibility. As Italy’s rules gradually align with broader European market practices, sustained negative prices are increasingly plausible.

Looking ahead, three factors make negative pricing more likely:

• Rapid solar PV expansion
• Flat electricity demand
• Storage capacity growing more slowly than renewables

This creates conditions where negative prices may emerge, especially around midday and during low demand periods.

Long duration storage will play a role, but today most market value is concentrated in just a few high and low-price hours. Because the cost of adding extra storage capacity scales roughly linearly, extending duration often delivers diminishing returns.

• The optimal battery size depends on:
• technology and capex,
• achievable market spreads, and
• how the asset fits into local demand patterns.

In practice, 4hour batteries are increasingly plausible, particularly in markets like Great Britain where the current two peak demand shape supports longer cycling windows. Seasonal or weekly storage may emerge over time, but which technologies will dominate — and at what scale — remains an open question.

Because the best spreads are usually captured in the single highest and lowest hour of the day. The second-best hours offer smaller spreads, so doubling duration does not double revenue.

Battery degradation is driven by chemical changes inside the cells. Over time, some active material becomes unavailable for storing energy, which reduces the battery’s capacity. At the same time, the build‑up of reaction by‑products can make the cells less efficient. In practice, the MWh capacity of a battery tends to degrade most visibly, while round‑trip efficiency also declines gradually according to many OEMs. Both effects are interconnected and occur as part of the same underlying ageing process.

This is clearly a very worrying phenomenon on a large scale. We take IT security very seriously.  

France’s political landscape is somewhat less stable than in other European countries, but the government’s 2035 energy plan reaffirms a mixed system including both nuclear and renewable energy. While renewable targets are less ambitious than in the past five years, policy direction continues to support ongoing development, though growth may be slower than in other European markets.  

Weather risk is inherent in renewable-driven markets. Derivatives can be used to hedge specific exposures, depending on asset type, geography and time horizon, though the details vary by strategy.

Yes. Thermal storage is often significantly cheaper than electricity storage on a €/MWh capacity basis. For industrial companies electrifying their heat demand, thermal storage can be a valuable source of flexibility. Heat stores can complement battery systems, though they typically require substantial space.

As markets mature and competition increases, some value pools naturally compress. That’s why our long-term flexibility and BESS revenue structures are not “set-and-forget.”

We design contracts that combine:

• A bankable downside, often through a fixed availability component
• A variable component linked to realised market revenues
• Indexation or periodic reopeners to adapt pricing as markets evolve
• Diversification across services, not relying on a single product
• Clear performance and availability metrics

This combination balances protection with upside, ensuring long-term resilience as markets change.

In recent periods, non-DA revenues can be expressed as a percentage of day ahead revenues typically and on average falling between 10% and 100% (of DA revenues). Although at times, for example when DA revenues are very low, non-DA revenues can be much higher than that for short periods. Non-DA value includes ancillary services from TSOs/DSOs and intraday re-trading. Importantly, ancillary services revenues are highly locational, and the UK experience shows meaningful variation by region and grid zone.

  Contracting is clearly counterparty and risk profiles specific.  

• Statkraft is both a renewable energy asset owner and an energy trader, developing and operating wind, solar, battery storage (BESS), and hydropower assets globally while actively buying and selling green power. This dual capability allows us to act as an energy integrator, building bridges between renewable energy developers and industrial off takers through tailored power purchase agreement (PPA) solutions.
  • Aligning different needs in the renewable energy market

Renewable energy developers and industrial buyers often have                              fundamentally different requirements when it comes to timing,                            technology, pricing, contract tenor, and risk allocation. Statkraft’s           role is to align these interests and manage the resulting complexity.

• Timing: investment decisions vs. procurement processes

Developers typically need to secure a PPA at the point of final investment decision (FID) to ensure project bankability. Industrial off takers, however, often require longer internal decision-making processes, including demand analysis, risk assessment, and management approval. These timelines rarely align. Statkraft absorbs this timing mismatch, enabling projects to move forward while giving industrial customers the flexibility they need.

• Technology: Single assets vs. portfolio solutions

Developers usually seek PPAs for individual assets, such as a specific wind or solar farm with defined capacity and production profiles. Industrial off takers, by contrast, require energy solutions aligned with their consumption patterns, sustainability strategy, and power purchasing approach. Statkraft analyses demand profiles and structures customised portfolios, combining wind, solar, and battery storage where relevant to best match customer needs.

• Pricing and Tenor: Bankability vs. Flexibility

Developers typically prefer long-term fixed-price PPAs to support financing and reduce revenue risk. Industrial customers often need more flexible arrangements aligned with their procurement strategies - such as floating prices, shorter tenors, or rolling hedging mechanisms. Statkraft enables this by offering developers price certainty while providing industrial off takers with pricing structures adapted to their risk appetite.

• Contract Structures, Asset Constraints, and Risk Profiles

Contract structures vary depending on the counterparty type and risk profile. Elements such as grid charging rules, asset-specific charging strategies, and operational flexibility can differ significantly between corporate off takers and utility-style tolling arrangements.

When assessing potential PPA opportunities, Statkraft also considers asset-specific constraints, including limited grid import capacity, restrictions related to co-location with generation assets, and regulatory or technical limitations. These factors are fully integrated into contract design to ensure operational feasibility and optimal risk allocation.

• Managing Risk and Enabling the Energy Transition

By structuring PPAs that account for market dynamics, asset constraints, timing mismatches, and contractual complexity, Statkraft manages the residual risks between developers and industrial customers. This approach enables renewable projects to reach investment decisions while delivering flexible, customer-centric energy solutions.

Through our integrator role, we support industrial decarbonisation, improve market efficiency, and accelerate the scaling of renewable energy across Europe and beyond.

At times we will be long flex, at other times we will look to close out our position using derivatives in the market (virtual batteries, high/low spreads etc). We may even decide to take a short position in flexibility if we find the right prices to do so.  We take a view on the market in terms of the value of flexibility and position ourselves accordingly.

Our position depends on market conditions. At times we may stay long flexibility; at others we hedge exposure using market derivatives such as virtual batteries or high/low spread products. If we see the right prices to do so, and the timing is right, then we may also take ourselves short flexibility.  We continuously assess the value of flexibility and position ourselves accordingly.