The Fully Charged Podcast Summary: "The Battery Boom: Why Grid Storage Is the Backbone of Clean Power!"

Release Date: June 9, 2025

Host: The Fully Charged Show
Guest: Ed Porter, Director of Insights for Europe at Modo Energy

1. Introduction to Grid-Scale Battery Storage

In this enlightening episode, host Imogen engages in a deep dive with Ed Porter from Modo Energy, a leading authority on battery storage systems integrated within electrical grids. The conversation navigates through the complexities of decoupling electricity costs from gas prices, the pivotal roles batteries play in energy storage and grid stability, and the future trajectories of energy infrastructure.

2. Who is Ed Porter and What is Modo Energy?

Ed Porter provides an overview of Modo Energy's mission, emphasizing their focus on tracking, forecasting, and researching battery storage systems on the grid. He explains, “At Modo Energy, essentially we track battery storage. So how does it operate today? We also forecast how it operates in the future and then we write research around that” (01:45).

Key Takeaway: Modo Energy serves as a crucial bridge between battery storage technologies and their practical, financial, and operational applications within the energy grid.

3. The Decentralization of Energy Systems

Imogen and Ed discuss the shift towards decentralized energy solutions, highlighting the increasing accessibility and affordability of home solar panels and battery systems. Ed remarks, “The energy transition has become so much more feasible for many consumers” (03:52), noting the ease with which individuals can now adopt renewable technologies, such as the innovative concept of "balcony solar" in Germany.

Key Takeaway: The decentralization trend is making renewable energy sources more tangible and widely adopted among consumers, fostering a more resilient and distributed energy grid.

4. Core Functions of Grid-Scale Batteries

Ed outlines the dual primary functions of grid-scale batteries:

• Balancing Supply and Demand: Batteries store excess energy when generation is high and release it during shortages. “Batteries help to balance the system. So effectively, when we have too much generation, batteries can charge, and then we have not enough generation, batteries can discharge” (04:23).

• Frequency Regulation: Maintaining grid stability by responding to fluctuations in frequency. Ed explains, “Frequency response is what it sounds like. It’s responding to frequency” (05:52), highlighting how batteries can instantly react to keep the grid operating within the desired frequency range.

Key Takeaway: Grid-scale batteries are essential for both economic trading within energy markets and maintaining the physical stability of the electrical grid.

5. Understanding Grid Frequency and Stability

Ed delves into the technical aspect of grid frequency, elaborating on its significance. “Frequency in the system is effectively talking about us having like three phase current. So a 50 Hz system” (06:53), he explains how deviations in frequency can impact both large-scale equipment and everyday household appliances. He shares a relatable anecdote: “If you, for example, start running your house off a diesel generator for a short period of time... you'll find the oven timer goes do lally” (07:56).

Key Takeaway: Maintaining a stable grid frequency is critical for protecting electrical equipment and ensuring the seamless operation of the power system.

6. The UK's Position in Battery Deployment

Imogen is surprised to learn that the UK is a leading market in deploying Battery Energy Storage Systems (BESS). Ed provides current statistics, “In GB we have 5.3 gigawatts of batteries. That's live...” (09:24), and discusses the ambitious Clean Power 2030 targets of reaching 22-27 gigawatts. He acknowledges the challenges in scaling up, such as securing grid connections and expanding engineering capabilities.

Key Takeaway: The UK is at the forefront of BESS deployment, but meeting Clean Power 2030 goals will require significant acceleration in installation and infrastructure development.

7. Duration and Capacity of Battery Storage

Ed explains that most current battery systems have a duration of about one and a half hours. “If you're a bit of a visionary, something like a six hour system could be quite interesting” (16:23), he elaborates on how different durations align with daily human energy usage patterns. He emphasizes the importance of optimizing battery cycling to maximize efficiency and economic viability.

Key Takeaway: Balancing battery duration with energy demand cycles is crucial for effective grid management and economic performance of storage systems.

8. Addressing Dunkel Flaota: Winter Energy Challenges

The conversation shifts to "Dunkel Flaota," referring to periods of low wind and solar generation, especially during winter. Ed outlines potential solutions, including carbon capture on gas plants and enhancing wind capacity. “Wind generation is lower in summer, it is higher in winter... we absolutely have to double down on wind” (22:52).

Key Takeaway: Mitigating winter energy shortages requires a multifaceted approach, including embracing carbon capture technologies and significantly expanding wind energy capacity.

9. Government Policies and Support for Storage

Ed critiques current government interventions, noting that storage systems like batteries have historically received limited support compared to gas and renewables. “Batteries do get paid a capacity market payment, but the difference is that gas receives something like 95% of their capacity market payment, whereas batteries only receive something like 15%” (23:14). He urges government bodies to prioritize battery ramp-up to achieve substantial decarbonization.

Key Takeaway: Enhanced government support and policy reforms are necessary to fully leverage the potential of battery storage systems in the energy transition.

10. Decoupling Electricity Prices from Gas

The discussion explores the potential decoupling of electricity prices from gas. Ed explains ongoing market reforms, such as moving towards national or zonal pricing systems. “Rather than decoupling gas from how the system prices today, I would say we're much more likely to see reform on things like national versus zonal” (26:39). He highlights that decoupling could protect consumers from gas price volatility without eliminating the need for some form of regulated pricing.

Key Takeaway: Transitioning to a pricing system less dependent on gas can stabilize electricity costs and protect consumers from market shocks, while still accounting for renewable and storage contributions.

11. Negative Pricing Events and Battery Benefits

Negative pricing occurs when energy generation exceeds demand, forcing producers to pay to offload electricity. Ed illustrates how batteries thrive in such scenarios: “Batteries are able to charge when prices go negative and then they wait until... they can discharge into the market” (41:21). This arbitrage opportunity allows batteries to profit from price differentials, enhancing their economic viability.

Key Takeaway: Negative pricing events present lucrative opportunities for battery storage systems, incentivizing their deployment and contributing to grid flexibility.

12. International Comparisons: Lessons from Texas

Ed compares the UK's battery deployment speed with that of Texas’s ERCOT grid. “Texas really got started, in all honesty, in sort of like 2020. ... they have just so much more of a much more aggressive attitude to being able to bring things onto the system” (43:40). He admires Texas’s rapid deployment and agility, suggesting that similar approaches could benefit the UK by accelerating energy storage integration.

Key Takeaway: Adopting a more aggressive and streamlined approach to battery deployment, akin to Texas’s strategy, could significantly enhance the UK's energy storage capabilities and grid resilience.

13. Integrating Distributed Energy Systems

With the rise of local community energy systems and vehicle-to-grid technologies, the grid faces new integration challenges. Ed envisions a future where the grid leverages a multitude of small-scale assets to provide precise grid services. “We are having specific markets for these things... a thousand, ten thousand individual units, be them batteries or they could be inverters...” (34:19).

Key Takeaway: The future grid will rely on a diverse array of distributed energy resources, necessitating sophisticated market mechanisms and grid management strategies to maintain stability and efficiency.

14. Octopus Energy's Zero Bills Homes Initiative

Imogen references Octopus Energy’s innovative approach to energy billing, which shifts from traditional unit rates to potentially capacity-based charges. Ed supports the initiative but notes challenges in recovering grid costs: “What might change is the capacity charge. So that sort of standing charge you'll see on your bill” (38:08). He underscores the need for fair compensation mechanisms as more consumers adopt self-generation and storage technologies.

Key Takeaway: Innovative billing models, such as those proposed by Octopus Energy, are essential for reflecting the evolving energy consumption and generation patterns of modern households.

15. Conclusion and Future Outlook

Imogen wraps up the episode by expressing optimism about the role of batteries in achieving a decarbonized and cost-effective energy grid. Ed echoes this sentiment, emphasizing the transformative potential of battery storage and urging support for the sector: “You will make a massive difference” (45:05).

Key Takeaway: Battery storage stands at the forefront of the clean energy transition, offering substantial benefits for grid stability, consumer costs, and environmental sustainability. Continued investment and supportive policies are crucial for realizing its full potential.

Notable Quotes:

• Ed Porter (04:23): “Batteries help to balance the system. So effectively, when we have too much generation, batteries can charge, and then we have not enough generation, batteries can discharge.”

• Ed Porter (05:52): “Frequency response is what it sounds like. It’s responding to frequency.”

• Ed Porter (09:24): “In GB we have 5.3 gigawatts of batteries. That's live and the average duration is about one and a half hours.”

• Ed Porter (23:14): “Batteries do get paid a capacity market payment, but the difference is that gas receives something like 95% of their capacity market payment, whereas batteries only receive something like 15%.”

• Ed Porter (38:08): “I think we might see it coming more through a standing charge. That's the only thing that I could say that would further that conversation because otherwise I would just totally be in support of solar battery and heat pump.”

This episode of The Fully Charged Podcast offers a comprehensive exploration of how grid-scale battery storage is revolutionizing the energy landscape. Ed Porter’s insights underscore the critical role of batteries in balancing supply and demand, enhancing grid stability, and driving the transition towards a sustainable and economically viable energy future.

For those interested in delving deeper into the topics discussed, consider tuning into the full episode of The Fully Charged Podcast for an engaging and informative conversation.