Battery.Network — Business Plan

Business Plan – Portfolio of 3 BESS Projects in Romania

Executive Summary

Battery.Network proposes the development of a portfolio of three battery energy storage system (BESS) projects, each with 15 MW power capacity and 30 MWh energy storage (a two-hour system). These units will be strategically located near Romania’s borders with Ukraine and Hungary, inside existing substations, to exploit nodes where cross-border flows frequently generate local imbalances. The projects target the balancing services market and selective energy arbitrage opportunities, leveraging an experienced team and strong trading partnerships.

Key pillars of the vision:

• Strategic Portfolio & Location: 3 independent BESS units (each with 15 MW / 30 MWh capacity), placed in Transelectrica substations close to the Hungarian and Ukrainian borders. Siting is based on identifying nodes with high volatility of cross-border flows where batteries can rapidly alleviate local imbalances and congestion.
• Target Markets & Use-Cases: The batteries will provide balancing services to the TSO (frequency-power regulation, fast reserves) and perform wholesale market arbitrage (Day-Ahead and Intraday). Flexibility to shift between these markets maximizes revenues as daily system conditions evolve.
• Competitive Edge – Trading Partnership: The strategy is backed by an established energy trading partner with ~€15M annual turnover, supplying financial credibility, trading expertise, and direct market access. Integrated trading know-how underpins robust cash flows and optimized financing costs (balance sheet strength and performance guarantees).
• Project Scale & System Impact: Each system uses 33 MW of installed battery power to guarantee 15 MW ATR / 30 MWh delivery and can inject ~30 MWh during peak intervals, stabilizing frequency and displacing expensive peak conventional units. Aggregated 45 MW / ~90 MWh would roughly double privately operated utility-scale storage in Romania, accelerating renewable integration.
• Profitability & Scalability: Base business model targets double‑digit annual returns, driven by elevated balancing revenues and daily arbitrage spreads. Modular design supports rapid multi-site replication. Battery.Network will act as both developer and long-term operator, ensuring continuity and performance.

Overall, Battery.Network leverages a time-sensitive opportunity at the convergence of rapid renewables growth, acute flexibility needs, and evolving pro‑storage regulation in Romania. The following plan shows how the proposed portfolio addresses this window via proven technology, smart market strategy, and seasoned execution, delivering investors an optimal blend of profitability and positive grid impact.

Market Opportunity in Romania

Romania’s power sector is undergoing structural change creating a favourable backdrop for battery storage. Local imbalances and price volatility have increased alongside accelerated renewable integration and dynamic cross-border exchanges—highlighting the need for flexible assets such as BESS.

Wind and solar penetration is rising, enhancing cost and environmental performance but adding variability. Forecasting supply/demand is more complex; deviations trigger instantaneous imbalances. In July 2024 the Balancing Market briefly cleared at ~16,000 lei/MWh—Europe’s highest at that moment—signalling acute scarcity of fast-response resources. Balancing is still dominated by a handful of large producers (hydro, gas, coal) who, lacking competition, command high regulation prices. Batteries can enter as agile challengers, broadening competition, damping extremes, and monetising volatility.

Cross-border flows further shape internal dynamics. Romania interconnects with Hungary, Serbia, Bulgaria, Ukraine, and Moldova. Border nodes experience oscillating import/export patterns—e.g. cheap nocturnal imports or large exports during strong wind in Dobrogea. Ukraine’s system (post emergency synchronisation with continental Europe) adds occasional unpredictability. Western (Hungary interface) and northern/eastern nodes can face rapid shifts leaving local surplus or deficit. Batteries sited in these nodes act as instantaneous buffers: absorbing surplus and delivering energy within seconds during deficits.

Regulatory momentum now favours storage. ANRE refines balancing products: aFRR and mFRR currently, with expectations for improved FCR remuneration. Historical barriers (unclear licensing, double charging) are being removed. In 2025 Romania adopted rules exempting re‑injected battery energy from network tariffs and green levies—lowering OPEX and boosting project economics.

Strategic policy commitment is clear: the Integrated National Energy & Climate Plan (PNIESC) targets at least 1.2 GW storage by 2030. PNRR grants launched for initial battery capacity (~2.5 GWh). Operational capacity grew from ~100 MW early 2024 to >240 MW mid‑2025, with multi‑hundred MW projects permitted or in queue (largest planned ~200 MW / 400 MWh). Early merchant entrants can capture above‑average returns before market saturation or potential future price caps. Timing is critical.

Opportunity conclusion: The proposed battery portfolio sits at the nexus of these factors. Strategic nodal placement plus balancing orientation monetize systemic stress while benefiting from regulatory improvements and structural renewable growth. For investors this represents critical infrastructure with strong, diversified, and time‑advantaged cash flow potential.

Technology & Architecture

Each BESS deploys state-of-the-art lithium-ion technology in a standardized, modular configuration optimized for performance, safety, and maintainability.

Key technical parameters:

• Power Capacity: 15 MW per site (maximum grid-deliverable power with 30 MWh usable energy).
• Injection Power: 15 MW AC per site (maximum delivered or absorbed under ATR). Bidirectional operation enables symmetric charge/discharge.
• Usable Energy: ~30 MWh (~2h at rated power; 2:1 energy-to-power ratio) chosen for optimal cost/versatility trade-off across peaks, balancing activation windows, and day‑night arbitrage.
• Round-trip Efficiency: ~90% (LFP chemistry targeted—thermal stability, long life). High efficiency improves arbitrage margins.
• Response Time: Sub‑second active power ramp; hundreds of milliseconds mode reversal—ideal for fast frequency operations.
• Lifetime & Cycling: ≥15 years design life; >5,000 full cycles to ~80% capacity with mid‑life augmentation (year 7–8) to sustain nominal capability.

Modular components:

• Lithium-ion battery containers (20’/40’) with HVAC and local BMS.
• Bidirectional inverters (DC/AC conversion with grid compliance—harmonics, voltage support).
• Step-up transformers & MV/HV switchgear (20 kV typical; 110 kV where required) with integrated protections and SCADA telemetry.
• Central SCADA + EMS platform for remote fleet coordination, real-time optimization, SOC, thermal & compliance management.
• Safety systems: fire detection & suppression (inert gas/aerosol), gas & thermal monitoring, cyber-secure networking (segmented, encrypted), perimeter security.

Siting within existing substations: Minimizes interconnection cost/time, leverages existing auxiliary power & protection schemes, reduces permitting complexity, and places flexibility directly at stressed nodes (limit network transit, immediate local voltage/frequency support).

Standardization (15 MW / 30 MWh template) produces scale economies in procurement, engineering reuse, O&M procedures, and spare inventory.

Market Strategy & Business Model

The commercial model diversifies revenues across balancing services (core stable layer) and energy arbitrage (opportunistic upside). A dynamic allocation engine (EMS + trading desk) shifts capacity intra‑day to maximize gross margin while preserving required reserves.

Balancing Market: Participation in aFRR/mFRR providing upward (discharge) and downward (charge) regulation. Batteries’ symmetric & rapid response underpins premium dispatch priority. Dual remuneration potential: capacity (as mechanisms mature) plus activated energy.

Spot Arbitrage (Day-Ahead & Intraday): Charge in low-price intervals (night / midday solar surplus) and discharge in morning/evening peaks or stressed scarcity intervals. Intraday repositioning refines Day-Ahead schedule responding to real renewable deviations or unexpected outages.

Optimization Logic: EMS ingests: forecast & live prices (DAM, IDM, balancing), SOC window constraints, activation probabilities, weather-driven renewable forecast deltas, TSO signals. It computes opportunity cost of reserving MW for balancing vs arbitrage spread capture per horizon, solving for expected marginal revenue contribution.

Trading Partnership: Provides advanced forecasting models, risk management (VaR/spread stress), automated order execution, credit management, and regulatory interface, freeing Battery.Network to focus on technical excellence.

Typical arbitrage example: Night-time prices often clear around 200 lei/MWh while evening peaks print 600–800 lei/MWh. Cycling a 30 MWh asset through that spread generates roughly 9,000–15,000 lei/day in gross margin per system (one cycle). Intraday swings—driven by renewable forecast errors or sudden outages—can push spreads even higher, which the EMS captures by re-optimising dispatch in real time.

Portfolio optimisation & risk management: The EMS continuously weighs the shadow price of capacity reserved for balancing against expected arbitrage value, factoring in SOC windows, activation probability, weather deltas, and market liquidity. This hybrid stack limits exposure to any single revenue source while protecting downside via the more predictable balancing layer.

Growth & scalability: Once the first three assets are operational, Battery.Network will replicate the template at additional high-value nodes in Romania and neighbouring markets. The trading partnership supplies the commercial infrastructure (analytics, market access, credit limits) to scale quickly, while the standardized technical platform keeps marginal deployment cost low.

Operational Strategy

The operational strategy maximizes revenue stacking by dynamically allocating capacity between Balancing (aFRR / mFRR) and wholesale arbitrage (Day-Ahead & Intraday) using a portfolio EMS that re‑optimizes hourly (and sub‑hourly when signals change). Core objective: preserve high availability for regulation while monetizing spreads without degrading asset life.

1. Balancing Participation: Bid symmetric up/down regulation; keep SoC mid‑band (40–60%) for bi‑directional headroom; sub‑second telemetry & response ensures dispatch priority.
2. Arbitrage Engine: Pre‑schedule charging in low‑price blocks (night / midday PV surplus); intraday re‑position on forecast deltas (wind/solar deviations, outages). Shadow pricing weighs marginal expected balancing value vs spread capture.
3. Degradation Management: Limit deep cycles; avoid sustained SoC extremes (<10% / >90%); calendar augmentation Year 7 to restore capacity trajectory.
4. Nodal System Support: Prioritize local discharge/absorption during congestion or voltage events (future optional monetisation: local flexibility / congestion relief products).

Result: Optimized commercial utilization without eroding lifetime, rapid adaptability to regulatory or price structure shifts.

Team & Management

Battery.Network combines expertise in advanced energy technologies with practical experience in developing and operating energy storage systems. The team brings together Romanian market knowledge with international best practices in BESS deployment.

Leadership:

• Founder & CEO - Sever Silaghi: Entrepreneur in the digital energy sector. Owner of sever.network (SEVER Network) - his blockchain platform for distributed energy active in 12 countries. MBA in Energy from ASE (Academy of Economic Studies). Practical experience in renewable energy: owns and operates 5+ MW of photovoltaic capacity with green certificates. Experience in building digital energy ecosystems and marketplaces for energy trading.
• Development Team: Specialists in strategic site identification, ATR negotiation with Transelectrica, and obtaining permits for BESS projects.
• Trading Team: Experience in OPCOM markets (DAM, IDM, balancing market) and optimization of energy arbitrage strategies.
• Technical Team: Engineers with expertise in energy storage systems, BESS integration, and operational management.

Expertise & Partnerships:

Battery.Network collaborates with industry specialists and partners to ensure operational excellence:

• Consultants with experience in Romanian energy market regulations (ANRE, Transelectrica)
• Technical partners for BESS system supply and integration
• Experts in energy trading algorithm optimization and predictive analytics
• Financial advisors for structuring energy infrastructure investments

Core Values:

Innovation-focused, safety-oriented operations, data-driven decision making, and commitment to sustainable energy infrastructure development.

Financial Analysis & Projections

Investment Structure (CAPEX PER PROJECT): ~€9M per system (15 MW / 30 MWh) including batteries & BMS (~50%), power conversion (~20%), civil & site (~15%), interconnection (transformer, MV/HV switchgear, protections) (~10%), development / permitting / management (~5%), plus contingency & financing costs. Portfolio Total: ~€27M for three sites (volume procurement effects).

Capital Structure Target: 30–40% equity / 60–70% project debt (initial leverage practical 50–60% for DSCR efficiency). Long‑term non‑recourse debt underpinned by predictable balancing revenue + partially hedged arbitrage.

OPEX per System (annual): ~€170–200k: maintenance & spares (~€100k), trading & ops allocation (~€50k), insurance & auxiliaries (~€20k), degradation/augmentation reserve (2–3% CAPEX equivalent). EBITDA margin >80–85%.

Operational Assumptions (Base/P50): ~300 equivalent cycles/year; balancing usage 60–75% hours; activated regulation energy 5,000–6,000 MWh/year (per system).

Revenue Composition (P50):

• Balancing aFRR / mFRR (PER SITE): Forecast €3,120,000 annual revenue with €663,258 energy cost, yielding €2,456,742 net profit (after costs) per system — net margin ~79%.
• Spot Arbitrage (DAM + IDM): Forecast €2,766,978 energy sales with €1,921,943 net profit (after costs) from 10,950 MWh traded; incremental operating cost €0/day.

Total Gross Revenue P50: ~€1.0–1.3M per system / €3.0–3.9M portfolio. Alignment with lei-denominated prior estimates (12–20M lei/system) confirms robustness.

Key Metrics (P50): EBITDA ~€1.0–1.1M/system; Unlevered IRR 14–18%; Levered IRR >18–22% (initial volatility years); Unlevered payback ~3.7 years (with €9M CAPEX and €2.46M annual net profit); DSCR 1.4–1.6x; Positive NPV (15–25% above equity at 8% discount rate).

Sensitivities: (1) Arbitrage spread -10% → IRR -1–1.5 pp; (2) Balancing price -25% → IRR -3–4 pp; (3) COD slip 6 months → NPV -6–8%; (4) Degradation +10% vs curve → earlier augmentation (IRR impact -0.5–0.8 pp). Buffers: 5–10% CAPEX contingency; liquidity reserve 6–9 months debt service; augmentation fund Year 7.

2024 vs 2025 vs 2026: 2024 = extreme volatility & transitional regulatory costs; 2025 = clarified framework (double charging removed) + more frequent moderate spreads (arbitrage uplift ~+20% vs 2024) offsetting milder extreme spikes; 2026–2028 = gradual margin compression (5–10%) from new entrants partly countered by higher absolute imbalance volumes + potential emergence of capacity / availability payments.

Financial Mitigation: Hybrid revenue stack (balancing core + opportunistic arbitrage), partial forward hedging (where efficient), structured augmentation reserve, stress scenario (-40% balancing price) still preserves >10% unlevered IRR (P90).

Note: Original detailed financial section merged here; duplicate block removed for clarity & traceability.

Implementation Plan

Portfolio rollout (3 × 15 MW / 30 MWh) over ~18–20 months to full COD with phase overlap to accelerate first revenue. Fast‑track possible (-2 to -3 months) via early critical equipment procurement post commercial term alignment.

Phase	Months	Key Deliverables
1. Development & Permitting	0–6	ATR, grid studies, site due diligence, draft trading & financing term sheets
2. Engineering & Procurement	4–10	Detailed design, EPC selection, battery & inverter orders, SCADA/EMS design
3. Civil & Electrical Works	8–14	Foundations, MV/LV cabling, transformer & switchgear installation, security infrastructure
4. BESS Installation & Integration	12–16	Battery containers, PCS, BMS commissioning, local functional tests
5. System Commissioning & Tests	15–18	Cold/hot tests, SCADA integration, balancing performance tests, compliance certification
6. Commercial Ramp-Up	18–20	Pilot optimization window, transition to nominal exploitation

Risk Controls: Schedule buffer 10–12% on critical path; EPC liquidated damages; independent technical audits (30% / 70% progress); CAR + Delay in Start‑Up insurance; component cost escalation reserve (5–7%).

Governance: Monthly steering (technical / financial / commercial); KPI dashboard (budget vs actual, % physical progress, risk index, operational readiness). FID trigger: ATR + financing term sheet + firm equipment offer alignment.

Risks & Mitigation

Market: Spread compression & falling balancing prices mitigated via diversified stack, adaptive EMS reallocation, selective forward hedging, early nodal positioning.

Regulatory: Active stakeholder engagement, flexible corporate structuring, monitoring EU storage & balancing platform evolution (PICASSO/MARI readiness).

Technical: Proven LFP chemistry, OEM warranties, predictive maintenance analytics, mid‑life augmentation reserve, cyber‑segmented architecture.

Financial: CAPEX contingency, multi‑lender strategy, DSCR design 1.4–1.6x, liquidity reserve, conservative leverage ramp.

Execution: Overlapping phases with buffer gating, independent engineer oversight, milestone‑linked disbursements.

Cyber & Safety: Segmented OT/IT, MFA, encrypted telemetry, periodic penetration tests, layered fire detection & suppression; incident response runbooks.

Impact & Sustainability (ESG)

Environmental

• Enhanced renewable utilisation (reduce curtailment; absorb peak PV/wind, displace marginal fossil peakers).
• Emission avoidance estimate: ~1,000–2,000 tCO₂/year per system (comparative vs marginal thermal balancing units).
• Minimal land take (existing substations); end‑of‑life recycling pathway for Li/Fe/P materials.
• Improved balancing efficiency lowering system reserve carbon intensity.

Social

• Local skilled jobs (development, EPC, specialized O&M) and technology skill transfer.
• Price volatility dampening benefits industrial consumers & wider economy stability.
• Community engagement: transparent consultation, educational outreach, academic collaboration.
• Regional resilience via rapid response to contingencies/outages.

Governance & Cybersecurity

• Full ANRE & Grid Code compliance; periodic technical & ESG KPI reporting.
• Internal compliance: ethical conduct policy, functional segregation, external audits.
• Cyber: OT/IT segmentation, TLS encryption, MFA, vulnerability management, penetration testing cadence, incident response drills.
• EU platform readiness (PICASSO/MARI) enabling future cross‑border balancing integration.

Systemic Value

• Adds ~45 MW / ~90 MWh flexible capacity—material uplift to private storage base.
• Supports frequency stability & congestion relief at stressed border nodes.
• Facilitates renewable expansion without proportional thermal reserve growth.

Note: Original standalone ESG & Regulatory section consolidated here.

Conclusion

Battery.Network offers a differentiated early‑scale storage platform positioned at critical cross-border nodes, combining technical robustness, dynamic revenue stacking, and disciplined execution. Strategic siting, experienced team, and an established trading partner create a defensible competitive position with scalable replication potential. Conservative projections justify investment; volatility & market maturation add optionality.

The window for advantaged entry into Romanian utility‑scale storage is now. Battery.Network is prepared to execute.

Team & Contact

Battery.Network SRL
Bucharest, Romania

Investment Inquiries:
Email: office@ebattery.energy
Website: ebattery.energy
Tel: +40 748 132 007

For Qualified Investors:

• Detailed Financial Model
• Technical Specifications
• Due Diligence Data Room
• Site Visit Arrangements
• Management Presentations

All inquiries confidential and subject to NDA.

Next Steps:

1. Execute NDA for detailed information
2. Review comprehensive financial model
3. Conduct technical, legal, and financial due diligence
4. Negotiate investment terms
5. Financial close Q2 2025
6. Construction start Q3 2025
7. Commercial operations Q2 2026

This business plan contains forward-looking statements subject to risks and uncertainties. Actual results may differ materially from projections. This document does not constitute an offer to sell securities.