What if a battery storage project could lock in its revenue before it’s earned it? SSE and Statkraft have done just that with a battery revenue swap: SSE gave up the ups and downs of battery income for a fixed price, Statkraft took them on, and both energy companies came out with less risk.On this episode of Transmission, Ed Porter is joined by Josh Brown, Origination Team Manager at SSE, and Cian O’Duffy, Energy Markets Quantitative Analyst at Statkraft, two people behind the deal, to explain how energy trading deals like this work and who could do one next.They cover:- How a battery revenue swap is set up, and why it needs far less paperwork than a wind farm PPA.- Whether a swap changes how you run your battery, and what basis risk means for owners.- How wind farms, solar farms and energy suppliers could use battery revenues to manage risk.- Why big businesses might buy a virtual battery instead of building their own.- What’s next for battery storage deals, plus two contrarian views on CfDs and battery revenues.Ask Ko, Modo Energy’s AI analyst, about battery revenues, power prices, wind, solar and data centres: https://modoenergy.com/product/ko?utm_source=podcast&utm_medium=youtube&utm_campaign=sse_statkraft&utm_content=ko_signupYou can watch or listen to new episodes every Tuesday. Transmission is a Modo Energy production. Your host is Ed Porter – Director EMEA & APAC at Modo Energy.Chapters:00:00 What is a battery revenue swap?01:11 How energy trading deals get set up03:07 Why SSE sold its battery revenue risk05:11 Why Statkraft wanted more battery risk06:27 How big the SSE and Statkraft deal is07:40 How swap contracts work (ISDA explained)10:39 Does a swap change how you run your battery?12:35 UK-wide vs regional battery indices13:55 Can wind and solar farms hedge with batteries?17:26 Battery revenues vs other ways to hedge20:27 Virtual batteries for big energy users24:30 What comes after swaps? Options and floors28:46 How CfDs affect negative electricity prices31:02 Why battery revenues could be a rocky ride33:26 Wrap-up