The electricity market's price volatility as a structural investment case
Battery systems connected to existing grid connections exploit the daily price variation on the DK1 spot market. The strategy is market-neutral, asset-based, and uncorrelated with traditional asset classes.
Here's how it works
Market surveillance
Our trading system retrieves DK1 spot prices on an hourly basis and calculates the optimal charging and discharging times based on price forecasts, SOC, and grid limits. Automated, 24/7.
Low-cost energy storage
The battery is charged from local wind production during negative or low-price hours. Free or nearly free energy is stored and waits for price peaks. Average 261 DKK/MWh.
High-priced discharge
During the morning and evening hours, when the spot price peaks, the battery exports within the grid limit and realizes the price difference as direct revenue. Average 898 DKK/MWh.
A real-world facility, measured over four months
Source: Actual DK1 spot data, Energy Data Service, Apr.–Jul. 2025, annualized. Gross total before operation, maintenance, tariffs, and tax.
Facilities & Production
Economy
The figures are derived from a specific Spentrup facility and are not a guarantee of future returns at other locations — the spot price spread varies from year to year. Any investment involves risk, including the risk of losing the entire invested capital.
Accumulated gross cash flow — arbitrage model
| År | Netto cashflow | Akkumuleret | Status |
|---|---|---|---|
| Year 1 | DKK 3,780,000 | DKK 3.78 million | In progress |
| Year 2 | DKK 3,780,000 | DKK 5.56 million | In progress |
| Year 3 | DKK 3,780,000 | DKK 7.34 million | In progress |
| Year 5 | DKK 3,780,000 | DKK 10.90 million | Refunded ✓ |
| Year 10 | DKK 3,780,000 | +DKK 3.97 million net | Profit |
Simple payback period (gross): 6.3 years. The facility can be expanded at a later stage with additional system services and market participation, which can increase the total annual additional revenue significantly beyond spot arbitrage alone.
Good to know about spot arbitrage
What warranty do I get on the battery?
All systems are supplied with a 10-year standard warranty on battery capacity. An extended performance warranty can be purchased as an add-on, ensuring that the battery always delivers 100% of its nominal capacity throughout the entire warranty period.
Can I also receive a government grant for this case?
Yes, if a publicly accessible charging station is included in the project. See the Grant page for the full rules and requirements.
How secure is the investment?
The investment is anchored in physical fixed assets with a book value. In the Spentrup case, the wind farm's existing balance sheet and solvency ratio of approximately 97% provide a strong foundation for borrowing and project financing.
Does frequent charging and discharging wear down the battery?
The battery is sized and managed to stay within safe SOC limits, which minimizes degradation. All systems are supplied with a 10-year standard capacity warranty.
Does the arbitrage model require an existing wind turbine?
No, the model can also be used with a battery alone connected to a standard grid connection, but an existing renewable energy source, as in the Spentrup case, typically further improves the economics.
Can a battery used for arbitrage also participate in ancillary services?
Yes — the two strategies can be combined so that the battery alternates between spot arbitrage and system services depending on where the market offers the best price in the given hour.
Get an investment analysis for your facility
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