Both the state and customers will benefit from battery storage, says Martin Pich
Battery storage is rapidly becoming a key component of the modern energy sector. It is not just about the technology, but also a new way of generating revenue from flexibility whilst stabilising the grid. Martin Pich, Director of the Trading Division at MND, explains exactly how this business works in practice.
Battery storage is a new area of business that MND is venturing into. However, the state and end-users of energy will also benefit from this – but how?
For the state, or rather for the electricity grid, batteries help to balance out fluctuations between generation and consumption. This reduces grid management costs whilst increasing its capacity, which can bring cheaper electricity from abroad into the Czech Republic.
For customers, this means downward pressure on prices in the long term, as batteries enable better use of cheap energy from renewable sources at times when electricity is expensive.
How will MND utilise the battery storage facility in Břeclav?
As with other projects, we will use it to provide both commercial and technical flexibility. Our aim is to monetise its operation across all market segments – from day-ahead (trading the day in advance based on planned prices) and intraday (trading during the day according to the current situation) right through to power balancing and deviation management services.
What does this mean in practice?
For example, for power balancing services, we offer the battery’s capacity to the transmission system operator ČEPS. In the future, we expect similar services to develop at the distribution level as well, whether in the form of dynamic tariffs or traditional ancillary services. In addition, we also use the battery on the wholesale market.
There is a lot of talk about algorithmic trading – how does it work with batteries?
In practice, this involves collecting and analysing large amounts of data from across Europe. Based on this data, we generate price forecasts and decide when to charge the battery and when, conversely, to sell energy. This process runs continuously – every 15 minutes, the battery receives instructions on how to operate.
Is this something you’ve already tried out with the Flexibility in Retail service?
Yes. We use our algorithmic models, which utilise modern AI technology, not only for flexible generation sources but also for trading on European markets. So we’ve tested them in practice. We deploy them for battery storage, photovoltaic systems and combined heat and power units, whilst also offering them to third parties.
How does this differ from domestic batteries?
The principle is similar, but large standalone batteries offer significantly greater flexibility. They are primarily governed by market demand and the technical parameters of the grid, whereas with domestic batteries, the consumption of the specific household plays the main role.
MND plans to build further storage facilities in the Czech Republic and abroad – will you manage them in the same way?
The basic principles remain the same. The only difference is in the configuration of the algorithms according to the specific market, particularly in the area of ancillary services.
Editor-in-Chief
Other articles
MND is heading into the battery business. What will the BESS projects bring?
MND is preparing the largest investment of 2025 - a 12 MW battery storage facility in Breclav with a capacity of over 30 MWh. This project is our entry into an area that is fundamentally changing the energy industry. Battery storage provides grid stability, commercial flexibility and contributes to the transition to a more sustainable energy mix with a higher share of renewables. New legislation and falling battery prices are opening up new opportunities in the Czech Republic. MND wants to develop projects not only in our country but also in the more advanced markets in Germany. Battery flexibility will play a key role in balancing demand, managing price fluctuations and supporting the decarbonisation of the energy sector. We are starting with Breclav, with more projects to follow.
Artificial intelligence is already helping in MND
In recent years, Artificial Intelligence (AI) has become one of the most discussed technological phenomena. For a long time now, it has not only been discussed in the context of science fiction films or scientific research institutes. Thanks to increasingly powerful computing and the availability of data, AI technologies have seen a huge boom in recent months. AI is now making real inroads into all aspects of our lives, from work to healthcare, science, education and entertainment.
Investment opportunity: balancing the energy grid
MNDs are looking at different market segments where it would be worthwhile to invest or at least be commercially active. One of the areas that caught our attention is the market for ancillary services and the volatility of electricity prices on the so-called spot market, where the price of electricity for the following day is determined. In cooperation with the Energy & Production Division, we are working on using our own gas for electricity generation (G2P Borkovany) and on investing in battery storage.