Revenue Certainty in Merchant Markets: Beyond Capacity Market Dependency

Synopsis

As Poland’s capacity market de-rating factors drop and the non-fossil flexibility scheme remains unclear, BESS projects face a fundamental question: how do you achieve bankability when merchant exposure is structural? This discussion explores practical revenue certainty strategies, evolving risk mitigation products, and structuring deals that work for both equity investors and lenders.

• Explore spread hedges, top-bottom hedges, and tolling agreements as energy traders enter battery markets
• Examine financing structures, junior debt challenges, and lender compliance requirements affecting return
• Address why financiers struggle with merchant alternatives and how to bridge the bankability gap