That pressure is also changing how contracts are structured. Dargue said battery storage systems are increasingly treated as a commodity rather than a fixed physical asset.
“We start off with these physical tolls, where basically you build a battery, and you take the full market risk, and if the battery’s there, great. And if it’s not there, too bad,” he said.
“Nowadays, it’s much more of a commodity. We write contracts that are much more usable in the market, much more interchangeable.”
Dargue said the pool of buyers is also widening.
“We write contracts with people who probably weren’t seen as natural buyers of these long-term contracts before,” he said, describing the market as “a lot more sophisticated” than it was.
