Hello Zayn! Could you elaborate on how your battery assets specifically change your risk profile compared to traditional REPs without storage capabilities?
Traditional REPs are short on power. They've sold power to customers but don't have any generation assets to supply that power—so they need to go out to the wholesale market to procure this power they've sold to customers.
At Base, our battery assets fundamentally change this risk profile. When the market experiences high prices during peak customer demand, we can utilize our batteries rather than purchasing expensive wholesale power. This gives us a physical hedge against price volatility and reduces our exposure to market fluctuations, creating a more stable business model and ultimately lower pricing for our members.
Hello Zayn! Could you elaborate on how your battery assets specifically change your risk profile compared to traditional REPs without storage capabilities?
Good question, Rory.
Traditional REPs are short on power. They've sold power to customers but don't have any generation assets to supply that power—so they need to go out to the wholesale market to procure this power they've sold to customers.
At Base, our battery assets fundamentally change this risk profile. When the market experiences high prices during peak customer demand, we can utilize our batteries rather than purchasing expensive wholesale power. This gives us a physical hedge against price volatility and reduces our exposure to market fluctuations, creating a more stable business model and ultimately lower pricing for our members.