Axelor Expands Battery Energy Storage for Electricity Trading in Czech Republic

The New Gold Rush: Why Big Energy is Betting on Battery Storage

For decades, the energy sector was defined by massive, centralized power plants. Today, the script is flipping. We are witnessing a strategic pivot where energy giants—ranging from established utilities like ČEZ to investment groups like Sev.en and KKCG—are pouring capital into Battery Energy Storage Systems (BESS).

This isn’t just about “saving electricity for a rainy day.” It is a sophisticated financial play designed to exploit the inherent volatility of a grid increasingly powered by renewables. When the sun shines and the wind blows, energy prices can plummet—sometimes even hitting negative values. When they stop, prices skyrocket.

Enter the battery: a tool that allows investors to buy low, sell high, and provide critical stability to the national grid.

Beyond Storage: The Power of Energy Arbitrage

The most exciting trend in modern energy is the shift from simple storage to active energy arbitrage. This is the process of leveraging price differentials throughout the day to generate revenue.

Take, for example, the Axelor group’s project in Mydlovary. By scaling their facility to a final capacity of 30 MWh, they aren’t just building a battery; they are building a trading hub. By utilizing a flexibility aggregator—such as AlphaGrid—they can automate the decision of when to draw power from the grid and when to feed it back.

This strategy significantly alters the financial viability of these projects. According to Adam Šmákal, director of Axelor’s energy division, relying solely on power balance services can lead to a payback period of up to ten years. However, by actively trading electricity, that payback period is roughly halved.

The Role of Flexibility Aggregators

Aggregators are the “brains” of the operation. They manage a portfolio of energy sources and storage units, ensuring that the electricity used is either produced by their own sources or managed assets. This creates a closed-loop ecosystem that minimizes risk and maximizes the efficiency of every kilowatt-hour stored.

From Infrastructure to Asset: The Changing Economics

The financial landscape for BESS is evolving rapidly. In the early days, scarcity drove massive returns, with some projects seeing a return on investment in just two to four years. As more players enter the market, these windows are narrowing.

Jan Fousek, Executive Director of the Association for Energy Accumulation, notes that as more projects come online, the expected payback period is shifting toward approximately eight years. This transition marks the maturation of the industry—moving from speculative “early adopter” gains to stable, infrastructure-style returns.

We are also seeing a shift in how these projects are funded. While initial risks—such as securing permits and reaching the ready to build phase—are often borne by the investment groups, the trend is moving toward bank refinancing once the assets are operational. For instance, Axelor is targeting bank loans to cover half of its 422 million CZK investment in Mydlovary.

Regulatory Catalysts and the Standalone Revolution

Technology is only half the battle; regulation is the other. For a long time, batteries were required to be tethered to an existing energy source (like a solar farm or wind turbine). This limited their utility and their location.

The introduction of legislation like Lex OZE III has changed the game by allowing standalone batteries to connect directly to the grid. This “decoupling” allows investors to place storage facilities exactly where the grid is weakest or where the potential for arbitrage is highest, regardless of where the generation happens.

This regulatory shift is the catalyst that will likely trigger a wave of new projects, as it transforms batteries from “accessories” into independent, revenue-generating assets.

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