Boost Trading Revenue with BESS
Battery Park Investment
Pribramsko Location Advantages
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Central Bohemia Hub: Direct access to Prague's 1.3M population energy demand center
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ČEPS Grid Access: Connection to 400kV/220kV transmission infrastructure with €142M modernization
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Solar Growth Region: Central Bohemia added 47.7MW in H1 2025 (2nd highest nationally)
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Cross-Border Arbitrage: 17 international connections for €95/MWh peak differentials
Milevsko Strategic Value
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South Bohemia Gateway: Optimal solar radiation (3.8 MJ/m² annually) for renewable integration
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Grid Balancing Need: Stabilizes 8GW solar target growth by 2030 (doubling from 3.6GW)
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EU Funding Access: €279M state aid available for BESS projects through Dec 2025
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Regulatory Advantage: Simplified permitting under Lex RES I for projects >1MW
Critical Market Timing
Strategic Window: Czech Republic's renewable energy transition creates optimal conditions for BESS deployment, with government targeting 30% renewables by 2030 vs current 15% - requiring massive grid stabilization investment.
Trading Opportunity
Market Volatility Creates Trading Alpha
- Renewable fluctuations drive price volatility
- Grid stabilization demand increases arbitrage opportunities
- BESS provides trading flexibility for Second Foundation
- Enhanced portfolio diversification
Day-Ahead Price Volatility
BESS as Trading Asset
Power Capacity
Immediate grid response capability
Storage Capacity
2-hour duration for optimal trading
Round-trip Efficiency
Minimizes energy losses
Strategic Value for Second Foundation
20MW/40MWh BESS capacity enhances Second Foundation's trading revenue through grid stabilization services, arbitrage opportunities, and ancillary services optimization. Provides operational control and strategic asset for portfolio enhancement.
Market Context
Grid Infrastructure Advantage
Robust transmission network with extensive cross-border connections creates optimal trading environment. Strategic positioning for regional arbitrage and ancillary services participation.
Regional Decarbonization Driver
Decarbonization Opportunity
Germany's aggressive renewable transition creates massive grid balancing demand. Czech BESS assets strategically positioned to capture cross-border arbitrage as intermittent renewables drive price volatility across Central Europe.
Opportunity Details
Allocation Range
Scalable investment sizing
Equity Payback
Rapid capital recovery
Equity Multiple
Over 10-year horizon
Investment Timeline Clarity
Revenue Architecture
Diversified Cash Flows (20MW)
Revenue Breakdown
Value Creation Framework
Strategic Deployment Benefits
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20MW/40MWh Capacity Addition
Enhances Second Foundation's trading capabilities
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Grid Stabilization Services
FCR participation with 60% revenue allocation
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Arbitrage Optimization
40% revenue from strategic trading operations
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Portfolio Diversification
Infrastructure asset with utility-like characteristics
Operational Excellence
Risk-Adjusted Returns
Performance Metrics
Target IRR
Infrastructure-grade returns
Sharpe Ratio
Risk-adjusted outperformance
Equity Payback
Fast equity recovery
Financial Breakdown (20MW)
Key Insight: Revenue declines 1.5% annually due to battery degradation, but net cash flow still increases after debt payoff in Year 8.
Capital Deployment
Investment Structure
Total Investment
€570k/MW CAPEX
Equity Requirement
Debt Financing
5.5% rate, 8-year term
Operational Costs
Note: Secondary industrial rate vs €7.75/sqm prime rate
Sources: Czech industrial land pricing, regional property reports 2024
Equity Returns Analysis
Investment Scenario Analysis
Key Investment Milestones
Year 3 Break-Even
Full equity recovery
10-Year Equity Multiple
467% total return
Average Annual ROI
Post break-even returns
Investment Highlight: Equity fully recovered in 3 years, with substantial upside returns continuing for project life.
Combined Investor View
Critical Visualization: Complete financial journey showing both payback periods and ongoing profitability - the most important chart for strategic partners.
ESG Impact
CO₂ Reduction
Annual emissions avoided
ESG Rating
Institutional grade
Sustainability Framework
Environmental
- • Grid stability reduces fossil fuel backup needs
- • Renewable energy integration optimization
- • Battery recycling program compliance
- • Minimal land use footprint
Social & Governance
- • Local economic development support
- • Transparent reporting standards
- • Community engagement initiatives
- • EU regulatory compliance framework
Implementation Roadmap
Q4 2025 - Q1 2026
Phase 1Regulatory Foundation
Permitting, grid connection agreements, financing closure
Q1 2026 - Q2 2026
Phase 2Infrastructure Development
Site preparation, equipment procurement, grid integration design
Q2 2026 - Q4 2026
Phase 3Construction & Commissioning
Installation, system integration, testing, certification
Q4 2026 - Q1 2027
Phase 4Commercial Operation
Grid connection, FCR qualification, revenue optimization
Strategic Partnership
Partnership Architecture
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20MW Managed Capacity
Full operational control for Second Foundation
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Trading Optimization
Strategic asset integration with portfolio
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Revenue Streams
60% FCR capacity, 40% arbitrage allocation
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Risk Management
Institutional-grade asset with utility characteristics
Partnership Benefits
Partnership Proposal
Option 1: De-Risked Co-Development & Promoted Equity
The partnership model, ideal for an investor seeking a long-term strategic alliance and operational control.
The Partnership Structure
- • Deploy capital as majority financial partner
- • Leverage our proven development execution track record
- • Minority equity alignment ensures sustained performance
Your Benefits
- • Full operational control driving trading alpha generation
- • Direct integration with existing trading strategies
- • Portfolio diversification with uncorrelated returns
- • Turnkey solution minimizing internal resource allocation
Our Commitment
- • Sustained operational excellence throughout asset lifecycle
- • Aligned incentives maximizing long-term value creation
- • Complete regulatory pathway de-risking and execution
Option 2: Project Buyout & Development Fee
The transactional model, designed for an investor who wants a clean acquisition of a derisked asset.
The Transaction
- • Acquire shovel-ready, de-risked infrastructure asset
- • Complete regulatory clearance and grid interconnection
- • Deploy construction capital with predictable returns
- • 100% ownership of cash-generating asset
Your Benefits
- • Institutional-grade asset with eliminated development risk
- • Immediate cash flow generation upon COD
- • Unencumbered ownership driving maximum returns
- • 15-year operational cash flow capture
Development Fee
- • Value-based development fee structure
- • Clean transaction with no ongoing obligations
- • Capital recycling for portfolio expansion
Option 3: Forward Purchase Agreement
The risk-mitigation model, offering the security of a guaranteed buyer from the very beginning.
Forward Contract
- • Immediate contract execution securing future acquisition
- • Fixed pricing eliminating market risk exposure
- • Guaranteed delivery under binding purchase framework
Your Advantages
- • First-mover advantage securing premium infrastructure
- • Market-leading terms locked at optimal timing
- • Strategic partnership for competitive pipeline access
- • Exclusive priority on future development opportunities
Risk Mitigation
- • Contractually guaranteed development returns
- • Complete elimination of execution and market risk
- • Incentive alignment driving optimal delivery
- • Binding timeline commitments with performance penalties
Next Steps
Schedule Trading Partnership Meeting
Contact Information
Phase 1
Partnership structuring discussion
Phase 2
Due diligence & term sheets
Phase 3
Partnership execution