Catalyst · 1 Oct 2026 · 37m
Shayle Kann interviews Brandt Vermillion, U.S. market lead at Modo Energy, about the Texas (ERCOT) grid-scale battery market, which has grown from 200 megawatts to 17 gigawatts, causing revenue to plummet by 84% due to ancillary service saturation and energy arbitrage cannibalization. Vermillion explains that while current revenues of ~$30/kW are underwater for most projects, the influx of data center load and the retirement of aging gas plants are expected to restore volatility and revenues by 2029-2030. The conversation details how longer-duration batteries (2.5-4 hours) capture secondary price spikes during extreme weather events like Storm Fern, and how developers are using tolling agreements to bridge the gap until market conditions improve.
early-stage companies
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