Zach Dell

Prices weren't that high.

Volatility was really low.

You had a bunch of battery build-out because the year prior, batteries were incredibly profitable.

Now, the actual response is not that quick.

We talked about the interconnection queue and how long it takes to get online.

And so I'm more speaking at a high level.

When batteries are really profitable, a bunch of people build batteries.

When batteries are not really profitable, people stop building batteries.

And

And so you have this boom and bust dynamic with the CapEx cycle, where in really good years, a bunch of battery developers get excited, raise a bunch of capital, build a bunch of batteries.

In bad years, the opposite happens.

It's a naturally volatile market.

That's something that we've spent a lot of time thinking about.

And our view is that batteries have fundamental value on the power grid.

Yes, they're very useful for energy arbitrage, but they're very useful for other things too.

I think of batteries as more akin to poles and wires than to wind and solar.

Poles and wires move energy through space.

Batteries move energy through time.

And I think over time, what we're going to see

is more utilities are going to realize the value of distributed storage.