Navigating Merchant Risk in Australia with Dennis Freedman (Managing Director @ Aquila Clean Energy)

Apr 30, 2025

Dennis Freedman, Managing Director for Australia and New Zealand at Aquila Clean Energy, shares insights from nearly 20 years in the energy sector. He discusses the critical importance of navigating merchant risk in battery storage and how its financing is evolving. Freedman contrasts the energy systems of Australia and New Zealand, emphasizing community engagement and the significance of social license. He highlights the urgent need for massive investments in transmission as the region shifts from coal to a renewables-focused grid.

Ask episode

AI Snips

Chapters

Transcript

Episode notes

INSIGHT

Embracing Merchant Risk

Aquila Clean Energy embraces merchant risk in battery projects, closing deals without fixed contracts.
They adjust contracts post-financial close to manage risk and improve economics over time.

INSIGHT

Better Financing for Merchant Batteries

Debt financiers are increasingly comfortable lending on fully merchant battery projects.
Maturity of markets and understanding of battery economics improves financing conditions.

INSIGHT

Australia vs New Zealand Energy Systems

Australia excels in electricity production but lags in storage, while New Zealand excels in hydro storage but has limited production.
New Zealand's nodal pricing with many nodes creates unique locational price signals impacting project siting.

Get the Snipd Podcast app to discover more snips from this episode

Get the app

As the energy transition in Australia and New Zealand accelerates, the ability to develop, finance, and operate renewable energy projects is becoming increasingly complex.

Success now demands more than technical delivery, it requires a deep understanding of market risk, community engagement, and long-term asset management.

From battery storage financing to the growing importance of social license, this episode explores navigating risk, engaging communities, and why having a long-term view matters more than ever, as Australia navigates away from the traditional model of centralised coal and gas toward a more renewables centred generation stack.

In this episode of Transmission, Wendel joined by Dennis Freedman, Managing Director for Australia and New Zealand at Aquila Clean Energy. Over the course of the conversation, you’ll hear about:

Aquila Clean Energy’s approach to battery storage: Why being comfortable with merchant risk is vital and how the debt market’s view on batteries is changing.
The challenge of modelling batteries vs. wind and solar: Why volatility and spread are what matter for storage revenues.
Australia vs. New Zealand: Comparing two very different energy systems, from hydro dominance to nodal pricing structures.
Social license and misinformation: Why community engagement is becoming the biggest challenge for new projects and how developers can get it right.
The future of the grid: Why replacing coal requires not just generation, but massive investment in transmission and why politics is increasingly slowing the transition.

Mentioned in the episode

Dennis is a member of the Clean Energy Council, if you would like to learn more about the CEC, head over to their website.

About our guest

Dennis Freedman is Managing Director for Australia and New Zealand at Aquila Clean Energy, where he oversees the development, construction, and operation of renewable and storage projects across the region. With nearly 20 years of experience in the energy industry, Dennis brings a long-term perspective to market risk, community engagement, and what it really takes to scale clean energy infrastructure.

About Modo Energy

Modo Energy helps the owners, operators, builders, and financiers of battery energy storage solutions understand the market - and make the most out of their assets.

All of our podcasts are available to watch or listen to on the Modo Energy site. To keep up with all of our latest updates, research, analysis, videos, podcasts, data visualizations, live events, and more, follow us on LinkedIn or Twitter. Check out The Energy Academy, our bite-sized video series breaking down how power markets work.