246. Can merchant batteries make solar PPAs work again? Insights from Alight

The energy transition requires a shift from standalone renewable generation to hybridized, flexible systems that integrate solar and Battery Energy Storage Systems (BESS). Alight, an independent power producer, manages this transition by moving beyond traditional pay-as-produced Power Purchase Agreements (PPAs) toward merchant-focused BESS strategies. Co-locating solar and BESS assets offers significant cost synergies, including shared grid connections and land, while providing a hedge against negative price volatility and eroding capture rates. As Nordic power demand is projected to rise from 400 to 600 terawatt hours by 2035, the industry must evolve into active portfolio management, utilizing trading capabilities and shaped PPA products to meet industrial electrification needs. This strategy prioritizes operational flexibility and risk mitigation, positioning storage as a critical component for stabilizing the grid and maximizing revenue in an increasingly complex, decentralized energy market.