Habitat Energy, a leading global optimizer of battery storage and renewable energy assets using advanced AI powered algorithmic forecasting and trading, has signed a first-of-its-kind agreement with Octopus Energy US to optimize a 50MW/100MWh tolled battery energy storage system (BESS) in ERCOT.
Octopus Energy US has tolled the BESS from the owner which gives it the right to use the asset’s flexible capacity to manage its retail load exposure. This is particularly valuable during periods of peak system tightness when wholesale prices can be high and volatile.
Habitat Energy will optimize the BESS, leveraging the flexibility of the asset as a hedge against Octopus Energy’s retail exposure while seeking profitable opportunities in the wholesale markets and delivering critical ancillary services to ERCOT.
This innovative approach delivers both revenue maximization and risk management, helping Octopus Energy to drive down costs for their customers while supporting more efficient use of clean, renewable power generation in Texas.
The deal marks Habitat Energy’s first BESS tolling optimization client in the US and is a significant milestone in leveraging the company’s advanced AI powered algorithmic forecasting and trading capabilities to deliver innovative new commercial strategies.
Habitat Energy onboarded the asset in just 6 weeks at the end of 2024, and has been optimizing the battery since the beginning of January.
This latest partnership makes Habitat Energy the largest specialist provider of optimization services for battery storage and renewable energy assets in ERCOT, with over 1GW now in operation.
Battery storage has a critical role to play in supporting the delivery of clean, cheap electricity to Texans. Working with Octopus Energy US, we are proud to be using our fully integrated AI-powered trading and optimization capabilities to pioneer new commercial models and accelerate the clean energy transition.
Together we will harness the battery’s flexible capacity to protect households from price spikes, balance electricity supply and demand and make the most of Texas’ abundant renewable resources.
”Michael Kirschner, Managing Director, Habitat Energy USA
Battery storage is a powerful tool to manage the especially volatile market conditions in ERCOT. We are pleased to partner with Habitat Energy on this project who have shown their capability to optimize revenue generation from a complex stack of traded markets.
”