Business Model Strategies for Energy Companies

Stop selling batteries to industry. Start selling outcomes. Every BESS conversation with an industrial CFO dies at the same slide: the capex. €800k+ for a 5 MWh system. Great IRR, solid payback — and still no signature. Why? Steel plants make steel. Ports move containers. Nobody wants a battery on their balance sheet. The model that fixes this is already here: Nobody buys. Everybody subscribes. → Operator finances, builds, owns, and optimises the battery → Site provides location and grid connection → Value gets shared — typically 60/40 to 90/10 depending on duration and risk Zero capex for the site. Guaranteed demand charge reduction from day one. The part lenders love: The BTM layer isn’t a modelled assumption — it’s a contracted service. Metered baseline, defined savings calculation, fixed share. That’s a cashflow you can underwrite. The FTM layer sits on top as merchant upside. Ring-fenced. Markets saturate? Debt service is still covered. The part the market underestimates: The 1,100+ projects in Europe’s connection queues are almost all traditional capex models. BaaS unlocks every industrial site with a grid connection and no appetite for energy assets. That’s not an incremental improvement — that’s a 10x expansion of the addressable market. On infrastructure that already exists. The battery is a commodity. The structure is the product. Who’s already running BaaS at industrial sites — and what splits are you seeing? #BESS #EnergyStorage #BaaS #BehindTheMeter #EnergyTransition #HeavyIndustry

The Hidden Shift in Solar Business Models A pattern is emerging that separates struggling solar companies from those positioned for success. Recently, while advising on a potential acquisition, I noticed something important: Companies clinging to traditional solar-only models face mounting challenges: • Rising customer acquisition costs in a competitive landscape • Margin pressure from changing financing dynamics • Operational complexity that scales faster than returns The companies navigating this transition successfully are taking a fundamentally different approach—using solar as an entry point for comprehensive electrification journeys. The key insight: IRA incentives create powerful bundling opportunities that remain largely untapped. When companies stack and sequence electrification upgrades strategically, they can dramatically improve economics while delivering greater customer value. Meanwhile, a technology adoption gap is widening. Forward-thinking operators are implementing digital solutions that transform every aspect of the business from customer acquisition to operations, creating structural advantages that compound over time. If you're leading a clean energy organization, consider: 1. Are you building multi-year customer relationships or remaining transaction-focused? 2. Have you mapped all IRA and state/local incentive stacking opportunities? 3. Which digital systems will deliver meaningful competitive advantages? The solar industry isn't just evolving—it's transforming. The winners will recognize solar as one component of a broader electrification strategy and position themselves accordingly. What patterns are you seeing in your market? Are you focusing on transactions or relationships? #CleanEnergy #Electrification #EnergyStrategy

Energy prices have gone up 7-25% in the last year. Outages are also on the rise. Geopolitical conflicts are disrupting the flow of fuels. Energy resilience and optimization has become a boardroom concern. Here are the moves I see leading companies making: 1. Assess risk and target resilience where it matters most Leaders identify where operations are most exposed to outages using grid data, climate risk, and load criticality. They prioritize mission-critical sites, map critical loads, and deploy targeted solutions like storage, backup generation, and load shedding to maintain continuity. 2. Quantify financial exposure and prioritize investments They translate energy risk into financial terms by modeling downtime, price volatility, and location-specific impacts. This sharpens capital allocation, prioritizes resilience investments, and brings finance into energy decisions early. 3. Evaluate and structure energy options as a portfolio Rather than one-off decisions, leaders assess the full set of levers, including demand flexibility, onsite assets, and procurement strategies. They build diversified, risk-aware portfolios that balance cost, reliability, and sustainability outcomes. 4. Optimize demand, supply, and electrification decisions over time They actively manage energy through efficiency, flexible load, and digital controls, while making selective electrification investments tied to asset lifecycles and real-world constraints. Supply mix, timing, and sourcing are continuously optimized against price, risk, and emissions. Together, these moves shift energy from a reactive cost center to a source of resilience, cost control, and long-term decarbonization progress. John Hoffman Thulasi Ram Khamma, Ph.D. Zarin Mitchell, CPA

Embracing Low Carbon Gas Business Models. The gas industry has a unique opportunity to lead the charge towards a sustainable energy future. By adopting Low Carbon Gas approaches and investing in the decarbonization of the gas value chain, we can ensure that natural gas continues to play a critical role in the global energy mix while significantly reducing its environmental impact. it is imperative for the Gas sector to ramp up its efforts towards deep decarbonization by adopting Low Carbon Gas business models. This transition is not just a necessity; it is an opportunity for innovation, growth, and leadership in the energy landscape. And in to fulfill its potential, the natural gas industry must invest in both supply and infrastructure at a consistent pace while simultaneously accelerating investments in decarbonizing the gas value chain. This dual approach will ensure that natural gas remains a viable and responsible energy source in a low-carbon future. Key Strategies for such expected business model as min.: 1.    Investing in Low Carbon Technologies: Embracing technologies such as carbon capture and storage (CCS), hydrogen production, and biogas can significantly reduce the carbon footprint of natural gas. By integrating these technologies into existing operations, companies can enhance their sustainability credentials and meet regulatory requirements. 2.    Enhancing Infrastructure Resilience: Upgrading and expanding gas infrastructure to accommodate low carbon gases is essential. This includes retrofitting existing pipelines and facilities to handle hydrogen blends and other renewable gases, ensuring a seamless transition to a decarbonized energy system. 3.    Collaborative Partnerships: The journey towards decarbonization requires collaboration across the value chain. By partnering with technology providers, research institutions, and other stakeholders, gas companies can leverage expertise and resources to accelerate innovation and implementation of low carbon solutions. 4.    Regulatory Alignment and Support: Engaging with policymakers to create a supportive regulatory environment is crucial. Clear frameworks and incentives for low carbon gas initiatives will encourage investment and drive the necessary changes in the industry. 5.    Consumer Engagement and Education: As the industry evolves, it is vital to communicate the benefits of low carbon gas solutions to consumers. Educating stakeholders about the role of natural gas in achieving energy transition goals will foster acceptance and drive demand for cleaner energy options. #lowcarbongas #gasvaluechain #decarbonization References: 1- Low-carbon business models: Review and typology : Author links open overlay panelMikko Sairanen, Leena Aarikka-Stenroos https://lnkd.in/dKTygVar 2- https://lnkd.in/dwQaVKUB

ENERGY'S NEXT BIG PAYDAY The Battery Energy Storage System (BESS) is reshaping how revenue is generated in the energy sector. Here’s what every energy professional needs to know. As the BESS owner/operator, you're at the center of this financial revolution. Whether you're a utility, an independent operator, or an investor, your role is to optimize the system's operation while capitalizing on diverse revenue streams. From predictable Tolling Agreements to flexible Spot Market opportunities, each model is tailored to different goals and risk appetites. Top Revenue Streams and Key Stakeholders: • 𝗧𝗼𝗹𝗹𝗶𝗻𝗴 𝗔𝗴𝗿𝗲𝗲𝗺𝗲𝗻𝘁𝘀. 2𝘯𝘥 𝘗𝘢𝘳𝘵𝘺: 𝘌𝘯𝘦𝘳𝘨𝘺 𝘖𝘧𝘧𝘵𝘢𝘬𝘦𝘳. Stable, predictable income over 5–10 years. Perfect for offloading operational risks. • 𝗘𝗻𝗲𝗿𝗴𝘆-𝗢𝗻𝗹𝘆 𝗔𝗴𝗿𝗲𝗲𝗺𝗲𝗻𝘁𝘀. 2𝘯𝘥 𝘗𝘢𝘳𝘵𝘺: 𝘜𝘵𝘪𝘭𝘪𝘵𝘺 / 𝘎𝘳𝘪𝘥 𝘖𝘱𝘦𝘳𝘢𝘵𝘰𝘳. Straightforward, fixed income with short 1–5-year contracts. Ideal for entering the market with clarity. • 𝗖𝗮𝗽𝗮𝗰𝗶𝘁𝘆 𝗦𝗮𝗹𝗲 𝗔𝗴𝗿𝗲𝗲𝗺𝗲𝗻𝘁𝘀. 2𝘯𝘥 𝘗𝘢𝘳𝘵𝘺: 𝘐𝘚𝘖/𝘙𝘛𝘖 (𝘐𝘯𝘥𝘦𝘱𝘦𝘯𝘥𝘦𝘯𝘵 𝘚𝘺𝘴𝘵𝘦𝘮 𝘖𝘱𝘦𝘳𝘢𝘵𝘰𝘳 / 𝘙𝘦𝘨𝘪𝘰𝘯𝘢𝘭 𝘛𝘳𝘢𝘯𝘴𝘮𝘪𝘴𝘴𝘪𝘰𝘯 𝘖𝘱𝘦𝘳𝘢𝘵𝘰𝘳). Long-term contracts (5–15 years) designed for financial stability and capacity payments. • 𝗘𝗻𝗲𝗿𝗴𝘆 𝗛𝗲𝗱𝗴𝗲𝘀 (𝗖𝗙𝗗). 2𝘯𝘥 𝘗𝘢𝘳𝘵𝘺: 𝘍𝘪𝘯𝘢𝘯𝘤𝘦 𝘌𝘯𝘵𝘪𝘵𝘺. Protection against market volatility with a secure revenue hedge over 1–3 years. • 𝗧𝗼𝗽-𝗕𝗼𝘁𝘁𝗼𝗺 𝗛𝗲𝗱𝗴𝗲𝘀 (𝗧𝗕 𝗛𝗲𝗱𝗴𝗲𝘀). 2𝘯𝘥 𝘗𝘢𝘳𝘵𝘺: 𝘔𝘢𝘳𝘬𝘦𝘵 𝘗𝘢𝘳𝘵𝘪𝘤𝘪𝘱𝘢𝘯𝘵. Revenue stability within price bands over 3–5 years, balancing risk and reward. • 𝗩𝗶𝗿𝘁𝘂𝗮𝗹 𝗣𝗼𝘄𝗲𝗿 𝗣𝘂𝗿𝗰𝗵𝗮𝘀𝗲 𝗔𝗴𝗿𝗲𝗲𝗺𝗲𝗻𝘁𝘀 (𝗩𝗣𝗣𝗔𝘀). 2𝘯𝘥 𝘗𝘢𝘳𝘵𝘺: 𝘊𝘰𝘳𝘱𝘰𝘳𝘢𝘵𝘦 𝘉𝘶𝘺𝘦𝘳. Support sustainability goals with long-term, risk-managed pricing for up to 10–20 years. • 𝗦𝗽𝗼𝘁 𝗠𝗮𝗿𝗸𝗲𝘁 𝗥𝗲𝘃𝗲𝗻𝘂𝗲𝘀. 2𝘯𝘥 𝘗𝘢𝘳𝘵𝘺: 𝘔𝘢𝘳𝘬𝘦𝘵 𝘗𝘢𝘳𝘵𝘪𝘤𝘪𝘱𝘢𝘯𝘵𝘴. High potential returns in peak pricing scenarios, with operational flexibility in variable, short-term contracts. • 𝗔𝗻𝗰𝗶𝗹𝗹𝗮𝗿𝘆 𝗦𝗲𝗿𝘃𝗶𝗰𝗲𝘀. 2nd Party: ISO/RTO. Premium pricing for grid services like frequency regulation, often in short-term variable agreements. Why does this matter? Each revenue model has a unique balance of owner risks, benefits, and typical lengths, making it critical to align your strategy with the right stakeholders and revenue stream. At the intersection of clean energy and financial innovation, BESS stands out as the ultimate tool for revenue diversification in a rapidly evolving market. Which revenue model do you think has the most potential for scalability? Let’s dive into the future of energy finance—drop your thoughts in the comments below.